Broadband Stakeholder Group calls for new broadband goals for 2010

The Broadband Stakeholder Group’s third annual report provides a definitive look at Broadband Britain at the beginning of 2004 highlighting significant progress made to date but warning there is no room for complacency as the challenge of delivering next generation broadband comes into view.

The Broadband Stakeholder Group (BSG), the government’s key advisory group on broadband, today unveils its eagerly awaited third annual report on the development of Broadband Britain. The report provides the definitive view of progress made in 2003 before warning that there is much more to do to enable a broadband Britain.

The BSG report recommends that government, in consultation with stakeholders should set a new target for the next phase of the UK’s broadband journey and the deployment of next generation broadband services, with clear milestones to be reached before 2010.

Third Annual Report and Strategic Recommendations, January 2004

Antony Walker, CEO, BSG argues: “It’s clear that broadband has taken off - people are seeing real benefits every day. The real challenge is to meet the growing expectations of both consumers and businesses as they adopt, adapt and absorb broadband into their daily lives and to make sure that we build a thriving and sustainable broadband market in the UK – this needs a new target for the next phase beyond 2005.”

The government’s 2005 target has been successful in stimulating action by both the government and private sector stakeholders. However, the UK can’t be complacent in its bid to keep up with international competitors. By setting new targets the government can re-focus on the next objectives and build on the good work done to date.

The BSG lists five critical challenges for the next phase of the development of broadband Britain.

The BSG’s Five Broadband Challenges

1. Create, deliver and exploit value – moving businesses and consumers through the phases of adopting, adapting and absorbing as quickly as possible
2. Building a thriving and competitive content services and applications sector in the UK – exploiting and optimising the potential of UK talent for creative media in a pro-competitive way
3. Encourage investment in ‘next generation’ broadband infrastructures and services ahead of the demand curve – Government has a critical role in creating the right investment climate for technological development
4. Developing new broadband ‘environments’ – moving towards a more integrated approach to fixed and mobile communications services with the development of interoperability between platforms, services and devices
5. Bridge digital divides – breaking down barriers to universal adoption and use is critical

The report positions broadband as a highly disruptive force that is rapidly changing the communications landscape as well as many other related sectors. The success of stakeholder activity over the past three years has hastened the onset of valuable broadband services and is now creating new opportunities. However, there are also significant threats in a broadband enabled global economy where lower skilled service jobs are easily exportable off shore. The BSG warns that as Britain moves into the next phase of the broadband journey, a huge step change is required by all stakeholders in the prioritisation given to building a world leading broadband-based online economy.

Keith Todd, Chairman of the BSG said, “we’ve made very good progress - but there is much more to be done by all stakeholders to accelerate not just the adoption of broadband but also the exploitation of its full benefits by consumers, businesses and the public sector.”

Stephen Timms, Minister of State for Ecommerce welcomed the BSG report and the new recommendations for further action, stating: “excellent progress has been made in the last 12 months with a significant increase in coverage, choice and take up of broadband.

“However the BSG is right to say that there remains much to be done. The widespread adoption and use of broadband is key to further improving UK business productivity and competitiveness.

“The BSG has been very effective in harnessing and communicating the views of the stakeholder community and I look forward to continuing the dialogue with all stakeholders as we move the next stage in the development of broadband Britain.”

-Ends-

The third annual BSG report lists five key challenges for broadband in 2004 and beyond:

1. Creating, delivering and exploiting value
It’s about services that add real value to people’s lives and the way in which organisations work. The challenge moving forward is to build broadband propositions that offer highly valued services, not just commodity access, which would stifle market development.

2. Building thriving and competitive content services and applications sector in the UK
The UK has real strengths in creative media and software development. It is vital that we optimise the potential for UK companies and UK talent to exploit the growing global market for broadband enabled media, content applications and services. The DTI’s and the Digital Content Forum’s work has to be furthered to better understand the broadband content market place and to understand how to leverage great national content assets (BBC) in a pro-competitive way to enhance the broadband value proposition.

3. Encouraging investment in ‘next generation’ broadband infrastructures and services
Demand in broadband services is likely to increase over the next five to ten years. Significant new investment in different technologies ahead of the demand curve is vital. Given the very high costs in investment – this looks prohibitively expensive today, particularly when operators are not sure of the levels of return on investment.

The UK Government needs to consider the implications of international competitors who are one or two generations ahead of the UK in terms of broadband deployment. It needs to focus on how it is going to encourage investment in the technologies that are essential for maintaining broadband momentum.

4. Developing new broadband environments
With users becoming used to having broadband connections at work and home, demand for always on, high speed connectivity on the move will grow. Building ‘pervasive broadband environments’ where users can choose the type of connectivity that is most appropriate will be key to market growth.

Greater alignment in policies and approaches towards mobile and fixed communications and progress in developing interoperability between platforms, services and devices will be required to meet the ultimate broadband Britain vision, with the potential to permit users to access any service over any device.

5. Bridging Digital Divides
We need to ensure the universal availability of the first generation of broadband services by the end of 2005, making sure that the low paid, the elderly and the disadvantaged are encouraged to adopt broadband by the better development of online public services. The BSG welcomes the Government’s announcement to establish digital inclusion panel to address this issue.

Editors Notes
The Broadband Stakeholder Group was established in April 2001 to advise the Government on its strategy for achieving its 2005 goal. The recommendations of its first two annual reports, were almost entirely accepted and are now being implemented – the Government acknowledged that there was no ‘silver bullet’ to speed up broadband adoption. The BSG strategy is based on a ‘virtuous circle’ model of adoption, whereby a critical mass of early adopters and market makers fuel mainstream development and adoption of broadband services.

Today’s report builds on these recommendations and is expected to take a leading role in shaping Government broadband policy.

Third Annual Report and Strategic Recommendations, January 2004

About the Broadband Stakeholder Group
The Broadband Stakeholder Group (BSG) was established by Patricia Hewitt in April 2001 to advise the government on the development and implementation of a strategy to enable the UK to meet the Government's target to have the most extensive and competitive broadband market in the G7 by 2005.

Since then the BSG has continued to act as the single focal point for all stakeholders to address both short and long-term issues related to the deployment and take-up of broadband services. Several working groups were established and are continuing to pursue ongoing work programmes.

The BSG has continued to build effective relationships with key private and public sector stakeholders, including the DTI and the Office of the e-Envoy and a number of key governmental departments and related industry bodies such as the OGC, Digital Television Stakeholder Group and the Information Age Partnership. Secretariat support is provided by Intellect, partly funded by the DTI.

Contacts
Blaise Hammond / Robin Grainger
Fuse PR
020 8956 2709 / 2648
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