UK government may fall short of fund for broadband

Tuesday, May 8th 2012

The London School of Economics (LSE) determines that government’s funding for superfast broadband for 90% of the UK population by 2015 falls short by ₤1.1billion.

The ambitious project may cost not less than ₤2.4 billion. The government has earmarked only ₤1.3 billion. The balance has to be acquired by means of raffle or some thing like that.

LSE is sure that basic coverage will be available for 100 percent of the population by 2015. But there is no hope of fast broadband to 100% of the population by then. Superfast broadband for 90% of the population may remain a mere dream.

As per past reports from Paolo Dini, for every 10% broadband penetration the Gross Domestic Product (GDP) per head can increase by 0.9% to 1.5%. He stated that for this single reason itself the government should have no hesitation in spending substantially for broadband. He ridiculed the attitude of the government in setting aside only ₤50 million for connectivity, whereas transport infrastructure has been sanctioned a whooping ₤200 billion.

Incidentally, the UK is among the top three countries in Europe in spending for broadband.

Paolo Dini ’s views are contested by the spokesperson of the Department of Culture, Media and Sports (DCMS), who is absolutely sure that the government will be able to meet the targets in the stipulated time.

If the people give their support for the high speed connectivity, by taking part in the raffle, it will make the task easier for the government.

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