http://point-topic.com/content/dslanalysis/How_the_Carter_Tax_could_work.htm
Some key points:
- They believe with 50p pm tax we could roll out 'superfast broadband' to 90% of the country by 2017
- market demand alone should be strong enough to bring next-generation broadband to around 73% of the UK
- The matching cost assumption is that the average investment required to provide fibre-to-the-cabinet (FTTC) broadband to a single street cabinet, able to deliver over 40Mbps to each user in its service area of about 1.6 sq km, will be £50,000. We assume this will be amortised over 10 years with a regulated rate of return of 8%.
- market demand alone should be strong enough to bring next-generation broadband to around 73% of the UK population
My thoughts:
Firstly let's deal with what NGA is - I say it is a replacement NOT an upgrade. We know copper is limited and will have to be replaced sooner or later so let's do it sooner and deliver a true NGA infrastructure to offer UNLIMITED broadband, not just 'superfast'. 40M is not the end game - of course it sounds fast by today's standards but then 1M sounded fast 4 years ago. Bandwidth demand is exponential and needs an infrastructure that can meet the demand in 5 years, 10 years, 20 years even 50 years time.
The focus is on delivery by BT and Virgin Media. BT rollout would be FTTC, as already indicated by Openreach and Virgin through expansion of current network capabilities. They also say we could cover 90% of the population by 2017 although acknowledging that BT have stated FTTC will cover 40% of the population by 2012 and their belief this will slip to 2013 (which could be optimistic). So that appears to leave a large gap between what they believe will be achieved and what they say is possible. How does that gap get bridged? Through BT charging more for their DSL services? Through the entire 'Carter Tax' being given to existing operators to extend their existing networks without actually reaching the ultimate goal of unlimited broadband?
No - it is the time for new thinking, new investment and new companies to drive NGA forward.
Thursday, 9 July 2009
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