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| UK orders broadband future review | UK orders broadband future review |
| (20 minutes later) | |
| The government has said it will review the future of broadband internet in the UK amid calls that it should help firms pay for installing new infrastructure. | The government has said it will review the future of broadband internet in the UK amid calls that it should help firms pay for installing new infrastructure. |
| It said it wants a better understanding of how to pave the way for moving to "next generation broadband networks". | It said it wants a better understanding of how to pave the way for moving to "next generation broadband networks". |
| The review will be carried out by the former chief executive of telecoms firm Cable & Wireless, Francesco Caio. | The review will be carried out by the former chief executive of telecoms firm Cable & Wireless, Francesco Caio. |
| An increasing number of consumers and firms are using broadband services and new, high-capacity cables are needed. | An increasing number of consumers and firms are using broadband services and new, high-capacity cables are needed. |
| 'Prepare the way' | 'Prepare the way' |
| The review has been ordered by the Department of Business, Enterprise and Regulatory Reform. | The review has been ordered by the Department of Business, Enterprise and Regulatory Reform. |
| The business case for next generation access is weak Ian Watt Enders Analysis | The business case for next generation access is weak Ian Watt Enders Analysis |
| According to the industry, the current telecoms infrastructure cannot cope with the increase in demand for services such as downloads of films, videos and music. | According to the industry, the current telecoms infrastructure cannot cope with the increase in demand for services such as downloads of films, videos and music. |
| The review will report back to ministers and Chancellor Alistair Darling in the autumn. | The review will report back to ministers and Chancellor Alistair Darling in the autumn. |
| "We need to prepare the way for the UK to adopt groundbreaking new technologies to ensure that we do not get left behind - competitively or technologically," said Business and Competitiveness Minister Shriti Vadera. | "We need to prepare the way for the UK to adopt groundbreaking new technologies to ensure that we do not get left behind - competitively or technologically," said Business and Competitiveness Minister Shriti Vadera. |
| Next generation broadband plans France: 4 million homes connected by 2012Germany: 50 cities connected by 2008US: 18 million households connected by 2010Japan: 31% already connected, 95% by 2010 UK: Review underway | |
| Last April, the Broadband Stakeholder Group, a government advisory body, warned that the government had two years to find ways of boosting investment in the next generation of broadband connections. | Last April, the Broadband Stakeholder Group, a government advisory body, warned that the government had two years to find ways of boosting investment in the next generation of broadband connections. |
| France and Germany are already trialling broadband services with much faster download speeds than anything offered in the UK. | France and Germany are already trialling broadband services with much faster download speeds than anything offered in the UK. |
| But installing the cables and other technology needed for very high speed broadband is extremely expensive. | But installing the cables and other technology needed for very high speed broadband is extremely expensive. |
| An estimate by Enders Analysis put the cost of providing that service to 5.6m BT residential customers at £1.1bn. | An estimate by Enders Analysis put the cost of providing that service to 5.6m BT residential customers at £1.1bn. |
| Analysts say cost is not the only problem. | Analysts say cost is not the only problem. |
| "The business case for next generation access is weak, Virgin Media already has a high speed network and Sky has a strong hold of the premium content that users might actually pay for," said Ian Watt, head of fixed-line research at Enders Analysis. | "The business case for next generation access is weak, Virgin Media already has a high speed network and Sky has a strong hold of the premium content that users might actually pay for," said Ian Watt, head of fixed-line research at Enders Analysis. |
| Other analysts point out that the benefits of switching from the old, dial-up internet service to broadband was clear and customers were prepared to pay for it. | |
| But according to Nickin Patel at Spectrum Value Partners it is "not clear" to consumers what the benefits of even greater speeds would be. |