UK broadband update December 2016

USO developments: this month Ofcom published its final report to government on the design of the broadband Universal Service Obligation (USO, Ofcom press release here and further background here). The USO gives people “the right to request an affordable broadband connection, at a minimum speed, from a designated provider, up to a reasonable cost threshold”. Ofcom agrees with the government’s view that the minimum speed for the USO should initially be set at 10Mbit/s; the government has also set out its preference for an industry funding mechanism for the USO.

Ofcom has set out three costed scenarios for the USO: a standard broadband service characterised only by a 10Mbit/s download speed, a more highly specified standard service, adding an upload speed of 1Mbit/s and additional performance criteria, and a superfast service offering a download speed of 30Mbit/s. The final decision on the design of the USO resides with the government. Also this month MPs took part in a general debate on the broadband USO; further information is available in a debate pack prepared by the House of Commons Library.

The National Infrastructure Commission published its Connected Future report into 5G technology (press release here and further background here). The Commission’s central finding is that “mobile connectivity has become a necessity. The market has driven great advances since the advent of the mobile phone but government must now play an active role to ensure that basic services are available wherever we live, work and travel, and our roads, railways and city centres must be made 5G ready as quickly as possible.” Also see this post for further detail.

Ofcom set out its proposals for allowing competitors to build fibre networks to homes and businesses using BT’s duct and pole infrastructure, also known as physical infrastructure access (PIA), as recommended in Ofcom’s Digital Communications Review earlier this year (this month also saw publication of Openreach’s final dark fibre reference offer, more background on this here and here). Ofcom’s consultation on its PIA proposals will close on 31st January 2017. Ofcom also published its 2016 Connected Nations and International Communications Market reports this month – see this related post, together with its latest Smartphone Cities report (more here).

Other UK broadband developments this month:

• The Department for Culture, Media & Sport (DCMS) announced that further funding will be made available to support the rollout of superfast broadband as a result of efficiency savings and the clawback arrangements within contracts between BT and local bodies. These arrangements support the reinvestment of funds when take-up exceeds predicted levels. The additional £440m will extend superfast services to up to 600,000 extra homes and businesses.
• The government published a new National Infrastructure and Construction Pipeline, setting out over £500 billion worth of planned private and public investment over this Parliament and beyond. The pipeline will help deliver important local projects across the country including transport, broadband, flood defence, and housing.
• Research from Which? revealed that nine in 10 people now think a broadband connection is essential to their everyday life alongside other essentials such as food, housing and utilities like water and energy.
• The Telegraph reported that the government is preparing a Green Paper on competition in consumer markets to be published in spring 2017; one aspect being considered is the provision of vouchers for homes in rural areas to support the innovative delivery of broadband services.