Governments broadband plans face a funding shortfall.

Filed under Broadband News

A recent report by the London School of Econmics says that the Governments targets for broadband are unlikely to be met. There is expected to be a £1.1 bn funding gap.

The Government wants 100% access to fast broadband services and 90% access to superfast broadband by 2015. However the cost of meeting the targets will be £2.4 bn but funding from public sources for broadband only amounts to £1.3bn according to the report. Ths leaves a shortfall of £1.1 bn.

The report, which was sponsored by customer management software company Convergys, says that the government target of 100% coverage of basic broadband should be met but it is not clear how the targets for fast and superfast broadband will be met. Basic broadband will give speeds of up to 2Mbps, fast broadband speeds of 2Mbps to 24Mbps and superfast broadband speeds in excess of 24 Mbps.

A spokesperson for the Department of Culture, Media and Sport has denied that the targets will be missed. He was reported as saying,” We are confident of completing the roll-out by 2015. All local authorities except 2 met the governments timeline by submitting their initial broadband plans on time.”

The Uk comes 17th in a global ranking of broadband penetration. We are behind France, Belgium and The Netherlands but we are just ahead of Germany, Canada and the US. However we are ranked 31 st for fibre- based services.

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