Government to advise against state-aid for broadband

In a review of Britain’s broadband infrastructure, the government is likely to advise against major public investment in a high-speed network, according to guardian.co.uk.

The publication reports that head of the inquiry, Francesca Caio, recommended that the development of high-speed broadband be left to the market, rather than calling in a state intervention.

Ciao expressed concerns that major investment in broadband may be unnecessary expenditure, telling Television, the monthly magazine of the Royal Television Society: "There are other technologies, wireless for one, that will increasingly deliver alternatives. You might run the risk of putting £15 billion into the ground."

The review assessed the extent that the UK economy would fall behind without the ultra-fast broadband, which could deliver speeds of up to 100 megabits per second.

"Although some other European countries are beginning to deploy next-generation access, I don't think we are in a position to say the UK is falling behind," said Caio.

Ciao does not believe the decision would not impair competition within the market: "The infrastructure seems to be fit for serving the needs that we have and there are early signs of competitors beginning to plan ahead to deploy next-generation access. I can't see any reasons to be particularly concerned about a material gap in competitiveness."