A long awaited review of the planned rollout of fibre optic based broadband network has recommended that the government should avoid investing into the project.
A report published on BBC’s website stated that the government’s review for installing Next Generation Broadband (NGB) in UK, finally concluded that the telecom companies should fund this multi-billion pound project entirely, which includes replacing the age old copper cables with the high-speed fibre optic cables.
Incidentally the NGB is expected to increase the speed of broadband connections to 100Mbps or more depending upon the location of the subscriber in UK.
“The BBC has been told that the report says there is no case for the UK government to provide cash subsidies to telecoms firms in order to accelerate the deployment of fibre”, BBC’s website mentioned.
This will be a major setback to many telecom companies that were expecting substantial subsidies from the government to renovate the copper cable network.
Further, BT has already promised to invest GBP1.5 billion for setting up the fibre cable network, but this is fairly short than the required sum of GBP5 billion, as proposed by the Broadband Stakeholders Group.