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UK faces £1bn broadband shortfall

UK faces £1bn broadband shortfall

A £1.1bn funding gap means the government’s targets for broadband are unlikely to be met, says a report by the London School of Economics.

The government wants 100% access to fast broadband services and 90% access to superfast services by 2015.

The report says the government should do more to ensure that underinvestment does not harm the UK economy.

A rise in broadband penetration of 10% can lead to a 0.9%-1.5% boost in GDP per capita, the report adds.

The cost of meeting the targets will be £2.4bn but funding for broadband from all public sources amounts to a total of £1.3bn, according to the LSE report, which was sponsored by customer management software company Convergys. That leaves an estimated £1.1bn gap that private investors will be expected to fill, it says.

“The government target of 100% coverage by basic broadband by 2015 is likely to be met, but it is less clear when the government targets of 90% coverage by superfast broadband, and 100% coverage by fast broadband, are likely to be met,” the report says.

Read More/Source: BBC News

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