BROADBAND STAKEHOLDER GROUP

Digital Britain – five months onKip Meek, Chair, Broadband Stakeholder Group

17th November 2009

BROADBAND STAKEHOLDER GROUP

General points

• Focus on entire value chain correct – joined up policy-making

• Unfortunate point in electoral cycle

– Smaller bill?

– Issues need persistence

Content CreationContent Creation Content AggregationContent AggregationPhysical

Distribution of Content

Physical Distribution of

Content

BROADBAND STAKEHOLDER GROUP

Possible to be gloomy …

‘Known's’

• The UK has high broadband penetration but very little fibre (or next generation access – NGA)

• There are some signs that the market is beginning to invest in NGA – BT’s and Virgin’s announcements

• The competitive implications of the UK lagging in NGA deployment are unclear (as is the demand for NGA)

– could be severe– could be immaterial

• The importance of universality of broadband and its relationships with speed is not understood; take-up a bigger immediate issue

• Small steps to improve the operation of the market could be cumulatively important

• Deployment of next generation mobile could be significant for UK competitiveness

Gloomy Assessment

• If universality, then 2Mbs ok, but more work needed …

• “Final third” will be an issue, but why now?

• No one in love with it

• Difficult to cast

• BT anti, complicated by T-Mobile/Orange merger

Digital Britain Proposals

• Universality at 2Mbs

• “Final third” Fund

• 50p levy

• NDPG

• Spectrum proposals

BROADBAND STAKEHOLDER GROUP

But let’s look on the bright side

• Something workable will emerge from “Final Third” fund and 50p levy

• Universality at 2Mbps will be a step forward

• Important to cast further light on analytic issues

– Universality vs. speed vs. take-up

– Fixed vs. mobile

• Spectrum policy important: good chance of making it happen

• Many small steps are the solution

– Rates

– Standard interfaces

– Progressive regulatory certainty

• Right institutions are in place: NDPG, BSG, CBN, etc.