According to foreign media reports, the UK government has launched its latest initiative, which will provide £400 million of funding for fibre broadband across the country to solve the UK's connectivity problems.
The numbers are good, but why has it taken the UK government so long to appreciate the benefits of a full fibre network? Even at the end of last year, there were still many executives touting the benefits of copper cables, trying to prove the usefulness of G.fast technology as a means. While G.fast is certainly faster than current technology, BT or Openreach executives think fiber is too cheap to take this step.
Andrew Jones MP, Chief Secretary to the Treasury, said: "We are planning to invest £400 million to ensure the UK's digital infrastructure is fit for future needs. As technology changes and people's habits change, we have an important role to play in ensuring the UK stays ahead of the game. Full fibre will give us better broadband and ensure that we can work flexibly and efficiently without causing connectivity failures."
Although the government is encouraging investment in fiber optic networks, there are still several issues that need to be raised.
First, shouldn't telecom operators do this? Many, while blaming Openreach for its last fibre mileage in the UK, will not forget that Ofcom made a move in December 2016 that would have allowed other CSPs greater access to BT's pipes and poles, encouraging them to build their own "full fibre" networks.
Fibre is expensive and telecoms operators are not as profitable as they used to be; But the fact that the British government is forcing telecoms operators to spend more money on fibre networks is still surprising.
The second point to consider is whether the money will be enough. The £400m of government investment would theoretically create a package of more than £1bn once private investment was added to the mix, but would it be enough? £400m sounds like a lot, but a full fibre network is very expensive.
This investment is in addition to a £23bn National Productivity Investment Fund aimed at boosting productivity. The fund will be managed by Amber Fund Management Limited and M&G Investments; The government believes that "this will trigger private financing interest in the sector, leading to more alternative providers entering and expanding the market."
What does the alternative supplier actually mean, though we can't figure out what the government means. Do government agencies believe that companies such as Deutsche Telekom and Orange will be interested in the UK again? Or does it mean better opportunities for start-ups? Or encourage regional businesses like KCOM and CityFibre to expand across the country? We don't know, nor do we know, how this money will solve these problems.
Finally, what exactly will the money be spent on? This is the most important issue, and one that has been ignored by the government as a public voice of stupidity. Will the money go directly to Openreach? What about Virgin Media? The company has spent a lot of money on fiber optics over the years, but is this initiative to create ultra-fast networks an effective solution to a problem that public money can't? Why should government money be paid to them? Will companies that have already invested a lot in fiber optic networks be adequately compensated? And what about the niche fiber operators?
It is worth noting that this is also the third time that the government has announced funding for fiber optic projects. Perhaps there will be a concrete plan when the programme is announced for the fourth time.
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