§ The Earl of Northeskasked Her Majesty's Government:
Whether they believe that the speed of broadband connections in the United Kingdom, with the majority running at less than a megabit, acts as a disincentive to customer take-up; and whether such speeds can exploit properly the advantages of information communications technology. [HL5959]
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville):We do not believe that the speed of broadband connections, which at 512 kbps is up to 10 times faster than a standard dial-up modem and at I megabit is up to 20 times faster, is a disincentive to 78WA take-up in the United Kingdom. Oftel statistics show that take-up is accelerating at around 20,000 new users each week, contributing to a total that is now in excess of 1 million.
These levels of speed for broadband connection in the UK allow greater exploitation of the benefits of information communications technology through faster downloads and always-on access.
§ The Earl of Northeskasked Her Majesty's Government:
Whether they believe there are any lessons to be learnt for the roll-out of broadband connectivity in the United Kingdom from the fact that South Korea provided $1.5 billion of public money to provide a backbone network and a further $1 billion on loans to ensure companies took broadband to rural areas.[HL5957]
§ Lord Sainsbury of Turville:A recently published report by a DTI-funded mission into the South Korean broadband experience shows that while there are lessons to be learnt from South Korea's strategy for deploying broadband, the differences between that country and the United Kingdom mean that it would not be appropriate for us to adopt exactly the same approach and indeed that there is no set template for broadband success.
The UK Government believe that competition is key to strengthening the broadband market. Large injections of cash would not necessarily lead to competition, choice for consumers and sustainable low prices.
§ The Earl of Northeskasked Her Majesty's Government:
Following the failure of the second attempt at auctioning 28 GHz fixed wireless broadband licences to attract a single bidder, what relaxations to the licence conditions are being proposed; and whether they are satisfied that these will result in a successful third auction. [HL6050]
§ Lord Sainsbury of Turville:On 15 October 2002, the Radiocommunications Agency published a consultation document on broadband fixed wireless access at 28 GHz seeking comments on proposals to amend licence conditions in line with the recommendations of the independent review of radio spectrum management conducted by Professor Martin Cave. It proposes to remove the use it or lose it condition and to relax the purpose of use condition so as to allow the deployment of any fixed service. This would apply to both existing and future licences. The agency is also asking whether it should consider making any further changes to the licences.
The Government intend to open a new award process as soon as practicable after the conclusion of the consultation. The proposed changes to the licences will give operators the flexibility to offer a wide range of services as they see demand developing. We believe this makes the licences more attractive but it is for 79WA operators to decide whether they wish to exploit the opportunity offered.
§ The Earl of Northeskasked Her Majesty's Government:
How they respond to the view of Keith Todd, chairman of the Broadband Stakeholders Group, that, notwithstanding that there are more than 1 million people taking up broadband, a digital divide still exists, with affordable broadband not available to one in three households; and what strategies they have in place or they are developing to address this. [HL6I12]
§ Lord Sainsbury of Turville:It is true that around one third of UK households are currently unable to access broadband through ADSL, cable or wireless, although satellite access is available to almost 100 per cent of households. In order to address this, the Government will continue to promote competition as a cornerstone of their broadband policy. A dynamic and competitive market will be the best means of driving broadband investment further. In addition, we are setting up a new regional broadband unit, which will work with the regional development agencies and devolved administrations to develop broadband availability.
Further information on the Government's broadband strategy will be found in the 2002 UK Online Annual Report, to be published shortly.
§ The Earl of Northeskasked Her Majesty's Government:
Whether the market-driven model for broadband roll-out will achieve adequate, if not complete, coverage for the whole of the United Kingdom, with particular reference to those areas of the country where it is currently perceived that no commercial market exists. [HL6113]
§ Lord Sainsbury of Turville:The Government believe that the roll-out and take-up of broadband must be market-driven in order to ensure the high levels of competition needed to produce sustainable low prices and consumers interest. This approach has meant that the UK currently has better levels of competition in the broadband market than any of its European G7 neighbours.
To help stimulate the market in those areas where broadband is not currently available, we are establishing a new regional broadband unit, due to be launched in November. The unit's broadband experts, to be located in the English regions and the devolved administrations, will work to promote the development of broadband, including extending its availability.
§ The Earl of Northeskasked Her Majesty's Government:
What plans they have for the delivery of broadband connectivity throughout the public sector in the United Kingdom. [HL6I14]
§ Lord Sainsbury of Turville:A new regional broadband unit, to be launched in November 2002, 80WA will work with individual government departments to develop broadband connectivity in the public sector. The unit will include a team of procurement experts, to be based as the Office of Government Commerce. OGC is also producing new framework contracts between public sector organisations and suppliers.