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CLA disappointed and shocked by broadband delay The CLA says it is disappointed and shocked by the Government's decision to extend the target for providing universal UK broadband coverage by three years, setting a new target of achieving the Universal Service Commitment (USC) within the lifetime of this Parliament – expected to end in 2015. In a speech to the broadband industry, Culture Secretary Jeremy Hunt announced that the Government would no longer be able to meet the USC of two megabits per second by 2012, because of insufficient funding, yet said that increased use of Government services online could lead to savings of at least £1 billion.
Angus Collingwood-Cameron, Director CLA North East said, "This announcement is very disappointing and appears short sighted. Of course, every cost has to be justified by Government, just as expenditure must be justified by families and businesses. Mr Hunt has already identified potential Government savings of £1billion. A proper cost-benefit analysis would include the impact of increased economic activity. Recent research has shown that here in the North East nearly 40% of rural businesses are run from home. How much could this activity increase if the communication infrastructure enabled the entire region? Why not invest some of the Government saving to provide greater, universal benefit?
"Broadband availability is the top of any business's checklist when they consider moving to or re-investing in a particular location, and we know that individuals rate it almost as highly. Perpetuating the digital divide, and not just in deeply rural areas, means that we risk a 'communications cleansing' of businesses and people from some places. Today, broadband is not just essential for business and the delivery of services, it is also essential for social inclusion and education.
"Government itself is missing a great chance to save more money by increasing its use of the internet to communicate with its citizens – it will be interesting to see how many people are excluded or penalised for not using Government services electronically simply because they don't have the technological ability.
"We have great opportunities to springboard the country's economic output and to underpin the sustainability of entire communities. The costs involved could and should be justified. Parts of the rural North East should not be condemned to the digital dark ages for a further three years."
Mr Hunt made the surprise announcement at a conference on 15 July, organised by Broadband Delivery UK.
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