New research has revealed that broadband growth would be boosted if the current regulation was changed to encourage more competition by breaking BT’s monopoly of the market.
The newly created Broadband Industry Group, which comprises Brightview, Cable & Wireless, Centrica, Energis, Freeserve and Tiscali, claims that only greater competition can ensure the potential of broadband.
The group commissioned the Centre For Economics and Business Research (CEBR) to assess the possible economic benefits of broadband. The research revealed that a fully competitive broadband market would increase UK productivity by 2.5% by 2015, which would boost the gross domestic product by £22 billion.
Commenting on the research, Douglas McWilliams, chief executive of the CEBR, said: “We predict that over the next 20 years broadband will have a similar impact on the economy to that of the introduction of electricity, should current regulation change to encourage more market competition.”
The group has pledged to continue to campaign greater competition in the broadband market. “It is widely recognised that availability does not necessarily mean adoption and therefore only competition will provide the innovation in products and pricing to drive mass market uptake,” claims Mary Turner, chief executive of Tiscali UK.
BT this week announced its intention to bring broadband internet access to the whole of the UK by 2005 and called on the Government and the industry to work together to make Broadband Britain a reality (see BT Targets 100% Broadband By 2005). Separate figure from the ONS show that broadband services are continuing to drive internet uptake in the UK (see Broadband Continues To Drive Internet Uptake).
