Budget 2017 - 5G and full-fibre broadband

Today's Budget announcements (also see the Chancellor's speech) build on last year's Autumn Statement. Initial actions supported by the National Productivity Investment Fund (NPIF) prgramme include a National 5G Innovation Network to trial and demonstrate 5G applications, and a series of local projects to accelerate market delivery of "fast and reliable full-fibre broadband".

Alongside the Budget the government published its 5G Strategy setting out "steps for the UK to become a world leader in the next wave of mobile technology and services". This includes:

• a new National 5G Innovation Network to trial and demonstrate 5G applications. The first phase will invest up to £16 million in a 5G facility with the technology to run the trials, delivered through cooperation between leading 5G research institutions. A new centre of 5G expertise within government will oversee this programme, working with public and private sector partners. Funding for future trials will be awarded on a competitive basis;
• the government’s response to the National Infrastructure Commission’s Connected Future report and recommendations on 5G. This will include developing commercial options for improving coverage on roads and rail, and working with Ofcom to ensure the UK has a regulatory environment fit for 5G.

Further analysis of the 5G strategy to follow. Starting in 2017, the government will invest £200 million to fund a programme of local projects to test ways to accelerate market delivery of new full-fibre broadband networks. These will combine the following approaches:

• bringing together local public sector customers, to create enough broadband demand to reduce the financial risk of building new full-fibre networks (also see the recent Department for Culture, Media and Sport call for evidence on approaches to extending full fibre networks);
• offering full-fibre broadband connection vouchers for businesses, to increase take-up of services where new networks are built through the programme;
• directly connecting public sector buildings, such as schools and hospitals. This will bring fibre closer to more homes and businesses, allowing them to be connected;
• opening up public sector assets, such as existing ducts, to allow fibre to be laid more cheaply.

Complementing the NPIF programmes, the new Digital Infrastructure Investment Fund will be launched in spring 2017. Government investment of £400 million will be at least matched by private sector investors, and will accelerate the deployment of full-fibre networks by providing developers with greater access to commercial finance.