Comment: Fibre-optics are a must if we want to compete

Feb 19 2009 By Maitland Hyslop for The Journal

LORD Carter’s recently published interim Digital Britain report set out the current Government’s strategy for supporting digital and communications businesses in order to place the UK at the heart of the ‘‘digital economy’’.

Onyx Group welcomed the recognition of the importance of the digital sector to the country’s economy and of the actions that will need to be taken to secure Britain’s place in this industry. However, closer inspection reveals that a key proposal does not go nearly far enough.

One of the recommendations was that there should be universal access to 2MB per second broadband by 2012. Such access is absolutely vital for the UK’s economy.

The flaw lies with the proposed connection speed, which cannot compare to the high speeds of up to 100MB per second available in countries such as Korea and Japan. These speeds mean that data transfer is faster and cheaper, which is vital for securing a country’s competitive advantage.

This is especially pertinent for the North East, as industries from computer gaming to graphic design, architecture to quantity surveyors, all of which have a significant role in the region’s economy, are dependent upon high-speed internet access. The region’s five universities also need access to high-speed connections if they are to remain at the front of internationally leading research. The national average speed of 3.6MB per second will need to be increased dramatically if the UK is to maintain a competitive advantage.

It’s not only businesses which will feel the impact of a slow internet connection. Services such as the BBC iplayer simply will not function in some areas.

The underlying problem with the recommendation is that it is based on upgrades to the UK’s existing telecommunications infrastructure, rather than investment in new cables. The existing wires, made of copper, are not capable of supporting the 100MB per second speed enjoyed in other countries.

Reliance on this infrastructure will also mean that high-speed broadband is simply not available in remote rural areas. With copper wires, the connection speed decreases the further the user is from the internet exchange, meaning remote areas will continue to suffer unless investment is made in new infrastructure. This is unlikely as upgrades were already underway on the existing system before the interim report was published.

If this Government is serious about putting Britain at the forefront of the ‘‘digital economy’’, it will need to invest in fibre-optic cables across the UK. The cost of doing so is estimated at £20bn – a relatively insignificant sum when compared to the billions recently spent bailing out the country’s banks.

Maitland Hyslop is chief operating officer of technology solutions company Onyx Group