Next generation fund
launched: UK to benefit from £1 billion investment in super-fast broadband
Rural communities
and hard to reach areas who do not have access to next generation
broadband will benefit from a share of £1billion of Government
investment said Business Secretary, Lord Mandelson today.
The investment will upgrade the UK’s digital infrastructure to
bring super-fast broadband to 90% of the country, essential if the
UK is to remain globally competitive as estimates suggest that
private investment will only reach up to 70% of the population by
2017.
The Next Generation Fund will provide the UK with a world class
communications network to bolster innovation and services in
digital content.
Launching a consultation on how proceeds from the Next Generation
Fund should be spent, Lord Mandelson said:
“This investment is about bringing the future of broadband to
areas of the country that would otherwise miss out. We cannot
underestimate the opportunities this will bring for homes and
businesses which is why we are taking action to make sure everyone benefits.
“Already the market is delivering superfast internet speeds of
50Mbps to half the country but we cannot be certain that it will
reach the communities that are not currently served, which is why
we are putting in an extra £1billion to support the market.
“By upgrading our networks we will put the UK at the fore of
rapidly developing technologies which will bring jobs, boost
business potential and grow our digital economy.”
Areas with little or no broadband provision are
likely to benefit from the investment with Ministers determined
to ensure that homes and businesses in hard to reach communities
are not left behind.
The objectives of the Next Generation Fund are:
To support Digital Britain’s aim to roll out next generation
networks to at least 90% of the UK by 2017;
To support economic growth by incentivising market investment in
communications infrastructure to meet the needs of businesses and
households;
To maximise links with the Government’s Universal Service
Commitment – a parallel broadband investment programme to ensure
every community has access to 2Mbps broadband connection by 2012.
Government is now consulting on the most effective way to deploy
the investment and will soon appoint a procurement team to oversee
the delivery and management of Next Generation Access.
The consultation paper outlines the high-level benefits next
generation broadband offers, including:
Telemedicine: provides real-time interaction between doctor and
patient so consultation and even examinations can be undertaken
online. This brings huge benefits particularly for the elderly and
those who live in rural communities
Teleworking: uses two-way video conferencing to facilitate
working from home. Brings social and economic benefits to those
who are less mobile such as people with disabilities and
single-parents. Teleworking also has potential environmental
benefits by reducing carbon emissions through decreased traffic
congestion.
Cloud computing: enables businesses to use the internet to store
and access software and data and share resources. Results in a
lower carbon footprint, less investment in computing equipment,
access to cost effective technology solutions that can be used
quickly, cheaply and less disruptively.
Faster upload and download speeds, and greater reliability and
consistency will bring higher productivity, increased innovation,
boost e-commerce and provide greater consumer choice and access to
time-saving e-government services.
The consultation considers issues that will inform the role of
the procurement team. These include ensuring there is competition
within new networks to drive consumer choice and drive down
internet service prices; whether the Fund should be deployed
nationally, regionally or locally; and the best options for
procurement.
As announced in the Pre Budget Report the ‘Next Generation Fund’
will be raised by a duty of 50p on all fixed lines as previously
announced in the Digital Britain White Paper.
The Government is also today publishing its growth strategy,
Going for Growth, outlining a strategic approach to
boost the UK’s public finances through sustainable growth.
Notes to Editors:
The consultation on how the Next Generation Fund will be spent
can be found at:
http://www.berr.gov.uk/consultations/page54155.html
A further consultation on how the fund will be raised was
published by the Treasury on Friday, 11 December and can be found
at: http://hm-treasury.gov.uk/consult_landlineduty.htm
The consultation has been issued to various stakeholders across
the telecommunications and internet provider industry. They have
12 weeks in which to respond.
The recommendations for the Next Generation Fund made in the
Digital Britain Report, published in June 2009:
http://www.bis.gov.uk/building-britains-digital-future Digital
Britain is the government’s vision of an economy and society where
core working activities are based around knowledge, skills and
information. It represents an ambitious and strategic plan to
accelerate growth in the digital industries and cement the UK’s
position as a world leader for innovation, investment and quality.
The Next Generation Fund builds on the Government’s Universal
Service Commitment which will deliver access of 2Mbps broadband to
the whole country by 2012.
Department for Business, Innovation & Skills
The Department for Business, Innovation and Skills (BIS) is
building a dynamic and competitive UK economy by: creating the
conditions for business success; promoting innovation, enterprise
and science; and giving everyone the skills and opportunities to
succeed. To achieve this it will foster world-class universities
and promote an open global economy. BIS - Investing in our future.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Joanna Robotham
Phone: 020 7215 5950
Joanna.Robotham@bis.gsi.gov.uk