HL Deb 08 May 2001 vol 625 cc151-2WA
The Earl of Northesk

asked Her Majesty's Government:

How they respond to the recent Organisation for Economic Co-operation and Development survey placing the United Kingdom twenty-first out of 30 industrialised nations in the league table for broadband penetration with 0.8 broadband connections per 100 citizens; and how they reconcile this with recent assertions by the Minister of State (Minister for Small Business and e-Commerce) that the United Kingdom is on course for being the best industrialised nation for high-speed Internet services by 2005. [HL1925]

Lord Sainsbury of Turville

The OECD data are now four months out of date. The latest domestic figures demonstrate a rapid increase in broadband uptake in the UK with BT alone increasing the number of customers for its DSL technology from 14,000 in November 2000 to 54,000 in April 2001.

The OECD data do, however, illustrate that broadband markets are at very early stages of development around the world. At the end of 2000, 21 of the 30 countries evaluated reported fewer than 1 line per 100 inhabitants. The comparison is, therefore, from a very low base.

At such an early stage in the market it is more relevant to measure availability of broadband services as a foundation for market evolution. Using OECD figures, 50 per cent of UK households are now within the area of a broadband-enabled exchange. This is behind the leaders Canada (69 per cent), USA and Germany (both 60 per cent). However, the UK compares well with Italy (52 per cent) and Australia (50 per cent) and is ahead of Japan, France (32 per cent) and Holland (40 per cent), and BT forecast 60 per cent availability by the end of the year. Furthermore, the cable companies—which pass 50 per cent to homes and businesses in the UK—are also rolling out broadband cable modem services. Licences for broadband fixed wireless access have also been issued for areas covering 60 per cent of the population. Together, this represents a firm foundation for continued rapid growth in adoption of broadband services in the UK.