Charlie Davies, Ovum analyst, says “The current British government has restated the former governments’ intention that the UK will lead Europe in broadband, albeit with a more ambitious target of 24 Mbit/s broadband by 2015.
“In certain markets like Japan, the pay-off for higher penetration rates of fibre-based broadband has been a significant increase in incumbent market share. This is a concern for a number of broadband suppliers in the UK who are worried that BT will simply maintain and even increase its market position in broadband as a result of its dominant position in more rural areas.
“There is nothing new in yet another government stating its intention to be the ‘best in broadband’; many other markets in Europe have cited aggressive development of broadband infrastructure as a key means of achieving differentiation in the global economy. Nor is there any transformational aspect to the announcement of £830 million of public funding to ensure ubiquitous coverage; the market is expected to deliver broadband to two thirds of the country.”