Broadband
The Benefits of Broadband
If a dial-up ‘narrowband’ connection is a garden hose, then a broadband connection is a fire hose – much more comes out at the end at a much greater speed. In April 2003, Oftel defined broadband as a connection that can download data from the Internet at 256 kilobytes per second (kbps). Most dial-up modem speeds download information from the Internet at 56 kilobytes per second (kbps). Generally ISPs provide broadband connections that download data at around 512 kbps or faster.
With virtually instant connections and a high-speed online experience, broadband revolutionises the way Internet users live, work, learn, play and interact with others. Broadband enables distribution of new types of content that were previously restricted to other media such as high quality real time video content. Customers can get more out of the Internet using a broadband connection.
Delivering a UK Broadband infrastructure
In November 1999, Oftel issued a statement, Access to Bandwidth: Delivering Competition for the Information Age, which set out its decision to require BT to make its ‘local loop’ available to other operators.
Local-loop u nbundling (LLU) is the process where the incumbent telecommunications operators (BT nationally and Kingston Communications in Hull) make the copper wires that run from customers’ premises to the telephone exchange (the local network) available to other companies. Other operators are then able to upgrade individual lines to offer services such as broadband.
LLU is very important to enable a competitive broadband marketplace in the UK. However, there have been severe delays in delivering broadband to British Internet users via LLU. Developments have been made, but incumbent operators still have a large number of exchanges to unbundle.
A true Broadband Britain will serve metropolitan, rural and socially deprived areas. Copper wire fixed-line connections are just one part of the solution to providing a ubiquitous broadband infrastructure. Broadband connections can be delivered via other means including fibre-optic cable, radio spectrum, satellite connections and other types of broadband delivery technology.
Broadband Deficit Hindering Industry Development
The lack of a broadband infrastructure in the UK has consequences on the development of other parts of the Internet industry.
The UK content and application developer industries have little drive to create broadband content and applications because there is not an extensive broadband infrastructure in Britain. With limited infrastructure the number of customers demanding broadband content is naturally limited.
Achieving Broadband Britain
The Internet industry and end users have faced high costs for broadband in Britain in the past, but now prices are falling. Oftel has taken action to reduce the wholesale cost of broadband to ISPs so that ISPs can provide a cost effective service to businesses and consumers alike. However the playing field is still not level as ISPs remain reliant on incumbent operators’ wholesale products.
A more competitive broadband marketplace will deliver further costs reductions.
To achieve a true broadband enabled Britain, the Government must act in the interests of business and consumers and insist that the Regulator uses its powers to ensure effective competition in the wholesale and retail broadband marketplace, rapid provision of local loops to competitive operators and robust service levels to competitive operators.
Government can help to widen consumer choice and actively encourage the provision of broadband in unserved areas by supporting competitive infrastructures including copper wire telephone lines, fibre-optic cable, satellite broadband, radio spectrum and other types of broadband delivery technology.
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Notes to Editors
For further information, please contact the ISPA Press Office. Email: pressoffice@ispa.org.uk Tel: 020 7340 4535
The Internet Services Providers’ Association (ISPA) was established in 1995 as a trade association to represent providers of Internet services in the UK. ISPA promotes competition, self-regulation and the development of the Internet industry. For a list of members or other information about ISPA, please consult the website: http://www.ispa.org.uk