ITWales.com

Costly fibre networks 'could transform UK broadband'

The deployment of 'next-generation' fibre-optic network broadband could bring massive benefits to the British economy, but plans for a roll-out could be hampered by the costs associated with such a network.

That is according to the Broadband Stakeholder Group (BSG), the government's broadband thinktank, which estimates that the cost of building an all-fibre network across Britain capable of delivering speeds of 100Mbps to homes and businesses would be in the region of £16 billion.

However, a report from the group warned that ISP investment in building the networks could be limited because there remains uncertainty about how fast they will be able to recoup their spending, something that could prevent the new technology from being rolled out.

"There is still real uncertainty about the extent to which investors will be able to realise enough of this value to justify investment," the report stated.

The BSG concluded that ISPs might be better served delaying deployment in the short-term and waiting for more information to emerge before investing large amounts into next-generation broadband networks.

In a recent report, the BSG said that the government should not part-fund the fibre rollout, and that costs should be covered primarily by ISPs and content providers.

ADNFCR-8000061-ID-18632434-ADNFCR