Guaranteed broadband makes it onto EU agenda
Guaranteed broadband speeds could become mandatory by the end of this year, depending on the results of a consultation launched by European regulators.
The European Commission said on Tuesday that it is considering whether to update the laws on the universal service obligation, which compels incumbent telecoms operators such as BT to provide specific services to everyone, no matter where they live. At present, laws require only the provision of a voice line and dial-up internet speeds.
While BT has rolled out up-to-24Mbps broadband to half of the British population, around 11 percent of households face broadband speeds slower than 2Mbps. Some households cannot receive a broadband service at all.
The Commission is keen to address that kind of situation across Europe and is seeking opinions from the industry on how such a change should be implemented. Any changes will be proposed for legislation by the end of the year, the Commission said.
"This consultation will help us to check if we need to update the rules to ensure that all EU citizens have access to essential communications services, including fast internet," said Neelie Kroes, digital agenda commissioner, in a statement.
"As markets and technology are changing fast, we have to make sure that nobody is excluded from the digital society."
The Commission wants to decide if broadband should be included in the obligation, and if so, at what speed. It is also evaluating whether the cost of providing universal service should continue to fall on telecoms operators, or whether it should be supported by public funds. It expects to conclude its consultation on 7 May and make concrete proposals later in the year.
The Commission's work follows the proposal in the June 2009 Digital Britain report by Lord Carter for a broadband universal service commitment of 2Mbps. This proposal differs from a universal service obligation because no operator is obliged to deliver 100 percent coverage, and blackspots could remain.
Rural households are a particular concern, as they often struggle with slow or non-existent broadband connections, and the potential revenues there are not seen as high enough to attract commercial investment.
The Commission declined to comment on how its consultation might affect Lord Carter's universal service commitment, and would not say whether 2Mbps would become the preferred minimum speed. "The Commission is in listening mode," a spokesperson said on Wednesday.
BT had no comment on the European consultation, but said it was supportive of Lord Carter's proposal. "We are very happy to work with the government with regards to the universal service commitment for 2Mbps broadband," a spokeswoman for the company said.
However, funding for faster broadband remains a big issue for BT.
"We are waiting for the network design and procurement body that will set out how it's funded. We are interested in bidding," the BT spokeswoman said. "Commercial solutions can only go so far. The economics of fibre just don't stack up for rural areas."
One of the key technologies BT has proposed for rural areas is called Broadband Enabling Technology. BET will offer symmetric speeds of 1Mbps over distances of up to 12km from the exchange. Two lines will be required for each household in order to provide the 2Mbps required under the universal service commitment.
The government endorsed the universal service commitment in a report released on Tuesday. The report — the National Plan for Digital Participation — was published by the Department for Business, Innovation and Skills (BIS) and outlines how the Government intends to ensure that citizens gain the most of the opportunities afforded by the internet.