Wednesday 27 January 2010

BIS consulting on how to spend NextGen Fund

Earlier this month, BIS announced its consultation on how to spend the money raised by the 50p/line Next Generation levy. The 23 questions in the consultation raise serious issues about conflict with free market approaches and chilling investment. The questions also cover the fixed/wireless debate, required speeds, open access, active and passive wholesale products and competitive effects, applications and services, and Government claw-back. In other words, pretty much everything exceot how to select the operators.

BT will be deploying teams of people to respond to this consultation, looking to get its hands on as much of the Fund as it can. No doubt it will argue that only they can provide a network which integrates with the commercially deployed fibre networks - or at least that economies of scale mean they can do it cheapest.

So how can Community Broadband initiatives ensure that they get a fair hearing ? Simple assertions that it is fairer or better will not suffice - what is needed is a thorough analysis and business case which demonstrates that this approach brings the greatest benefits.

Huw Williams
NetStrategics - analysis for telecoms strategy