DIGITAL BRITAIN: The government has earmarked £200m of the money handed to the BBC to help with digital switchover and provide universal broadband access by 2012.

There have been varying estimates of the size of the Digital Switchover Help Scheme underspend (digital surplus), but the Digital Britain report estimates that it will be £200m when it is realised in full by 2012.

This money will be enhanced by five other sources:

  1. commercial gain through tender contract and design;
  2. contributions in kind from private partners;
  3. contributions from other public sector organisations in the nations and regions who benefit from the increased connectivity;
  4. the consumer directly for in-home upgrading;
  5. the value of wider coverage obligations on mobile operators arising from the wider mobile spectrum package.

The cash will fund the government’s Universal Service Commitment to deliver 2Mbps to homes across the UK through upgrading existing copper and wireless networks and a mix of technologies, such as DSL, fibre to the street cabinet, wireless and possibly satellite infill.

The government has also committed to providing a superfast broadband across the UK via a Next Generation Final Third project that amounts to building a new network.

The focus will be on ensuring those areas where hig-speed broadband would not be economically viable will nevertheless have access.

The network will be funded by an independent Next Generation Fund, based on a supplement of 50p permonth on all fixed copper lines. The fund will be available on a tender basis to any operator to deliver.

The government said telecoms consumers enjoyed either the lowest or among the lowest prices of any major European market, and that the levy was “the fairest and most efficient means” of providing the network.

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