'Well intended but lacking in detail'
Updated on 29 January 2009
Response to Lord Carter's interim Digital Britain report, calling for every home in the UK to have broadband by 2012, has been varied.
Internet providers have been broadly positive, while industry analysts have been more circumspect.
Matthew Howett, senior analyst at advisory and consulting firm Ovum, said the report portrayed the sector as a ray of hope in an otherwise bleak economy.
It lists 22 recommendations to make the digital network the backbone of the UK economy in the same way that roads and railways have been in the past.
"Promising a universal service obligation for broadband by 2012 is an ambitious target with far reaching implications.
"All well intended, but severely lacking in the detail."
Andrew Kitson, senior analyst at Juniper Research, pointed to the cost of building new, faster networks.
Even if the business case for migrating from older circuit-switched networks to IP-based networks is commercially sound, it could be difficult for operators to commit the large amounts of money these projects require, particularly in the current volatile economic environment.
Kitson also questioned the effectiveness of subsidies.
He says they may not be enough of an incentive for some operators, which may actually be dissuaded from having to commit to specific rollout and availability targets.
"We're pleased that the government has abandoned the 'three strikes' proposal which would have required ISPs to disconnect customers deemed by rights holders to have shared content."TalkTalk
Perhaps unsurprisingly, UK service providers were broadly positive in their response.
BT said:
"We welcome the clear sense of direction that Lord Carter has brought to the debate and are encouraged by his recognition of the need to incentivise investment.
"Recent studies have shown the UK to have one of the most competitive and best developed communications sectors in the world.
"It is right that the government are looking for ways in which everyone in the UK can benefit more from further investments in the UK's digital future."
Neil Berkett, CEO of Virgin Media said:
"The government's interim report does a good job of identifying the questions that policy-makers and the industry need to confront and some sensible mechanisms for taking them forward.
"We are committed to engaging with the industry, government and Ofcom to consider in more detail how we can work together to address these challenges."
TalkTalk added:
"We're pleased that the government has abandoned the "three strikes" proposal which would have required ISPs to disconnect customers deemed by rights holders to have shared content under copyright.
"The proposal was unfair, unworkable and against the customer interest. We look forward to seeing the detailed proposals on the more reasonable alternatives outlined in the report."
