Tag Archive for 'broadband access'

Roy Clare, Chief Executive, MLA

Entitlement and opportunity

People are entitled to local public library services delivering to local needs, free at the point of delivery, as part of a national network.

A network fit for modern consumers – fulfilling the democratic right to books, information and personalised advice in a digital age.

Everyone is entitled to be a customer of public libraries. The habit of reading and learning starts early and extends throughout life. Libraries create and develop a love of reading and have the capacity to change lives by inspiring people to learn and to develop new skills.

Quality and scope

The quality of services is rightly a matter for elected councillors, but the scope must be defined nationally and accredited. Performance is best assessed by local consumer response, informed by best practice.

Leading library services already work in partnership with each other and with a wide range of other organisations; the rest need to be shown how to catch up with the best.

However, a single national library authority, responsible for all public libraries, would jeopardise the progress being made in many places and would throttle local delivery.

Physical space

The physical spaces that are provided depend on patterns of local demand; some places merit buildings on a vast scale, but neighbourhoods and communities need attractive provision that reflects what local people want.

Currently there are too many buildings and too many decrepit buildings. Local political leadership has to recognise that buildings do not equal services; buildings can be closed to improve services. Opening hours, the range of books, information and services must reflect consumer expectations, derived through engagement with the community.

Digital space

Digital technologies present the biggest opportunities.

The 24/7 public library already exists, but most local authorities do not promote or market it.

The internet does not respect Council boundaries, and neither should a customer focused national network. The digital space that is provided for modern consumers must provide a 24/7 complement to

physical services. The principles of on-line library delivery can match the speed and character of commercial offers.

A nationwide, publicly-searchable database of library books and other products should be provided. Faster broadband access and greater capacity are available; local authorities can use existing educational networks like JANET, which can also provide access to additional high quality on-line resources.

Shared delivery

Library services ought to be an integral part of local delivery, synthesised with services for adults and young people and supporting education for personal, family and community development.

Delivery partners vary by location, but typically include other branches of the local authority, plus schools, colleges, universities, museums, archives, surgeries, nurseries and centres for children and for adult day-care.

Marketing and non-users

Councils need to do more to market their books and information services, both physically and digitally.

Research indicates that people are pleasantly surprised when they go into a library, which suggests a lack of prior knowledge of what is on offer.

More than half the population never use a library; many non-users are potentially new consumers. Their perceptions and attitudes need to be understood, locally and nationally, and used to drive change.

Staffing

An accent on consumers demands new skills and more rounded leadership. Qualified librarians are needed alongside experts in learning, digital and customer services, complemented by greater use of volunteers for specific tasks.

Council-wide volunteering programmes can improve service delivery to communities, involving people and helping them to share and develop skills and experience, with benefits for employment and the economy.

Governance

Various models of governance are available, offering a variety of business plans and professional and funding partnerships. Councils can choose between out­sourcing; strategic commissioning and charitable trusts, with the latter known to stimulate improvement and creative thinking.

Not all these options suit all locations; choices are best made locally. Revenue-generating activities already exist and can be encouraged where they do not compromise the principles of ‘free services for all at the point of delivery’.

Legislation

The governing Act (1964) does not reflect modern local government, nor the accent on localism, nor the push for quality and innovation through new ways of working, with partners and shared services.

The legislation should be recast with the concept of ‘membership’ replaced by openness to all, for personal, individual development, and with expert services characterised by welcoming experiences and new business models.

National organisation

A single national body can provide advice and guidance on best practice and innovation; collate evidence of outcomes and impact; oversee self-assessment and accreditation; and support improvement led by local government.

The MLA, recently-restructured and reorganised, now doing more with less, is equipped to undertake this role. It needs only to be mandated accordingly.

Efficiency and value

Public investment in libraries pays dividends in terms of benefits for individuals, the community and the economy. Results are reflected in performance indicators, the CAA and public audit of VFM.

There has never been a greater need for local public library services.

2.8 Reach

2.8.1 The Executive expects Canvas to appeal mainly to existing Freeview and Freesat customers with broadband access. However, the proposal also aims to drive take-up of broadband services in Freeview or Freesat households which do not currently have a broadband connection. The proposal may also be attractive to analogue households that have yet to make their switchover choice.

2.8.2 The Executive’s proposals indicate that the Canvas proposition will conform to best practice in terms of accessibility.

2.8.3 The Executive has included in its proposals an initial forecast for the reach of the Canvas proposition. Based on an independent model commissioned for the purpose, it estimates an initial take up of 3.3 million set top boxes by the end of year 3 (2012)8. This is the point by which all UK analogue broadcast services are scheduled to complete a switch over to digital transmissions. [8 This is based on the low case scenario described in section 7 of the BBC Executive’s submission and is made up
primarily of existing Freeview homes with broadband. The numbers assume that there are competitor responses.]

2.8.4 This estimate assumes competition from paid for services, such as Sky’s Picnic proposals which are currently being assessed by Ofcom. The Executive has clarified that its forecasts for take up of Canvas were developed in the summer of 2008 and may change subject to the availability of HD services and the overall economic climate. It has subsequently clarified that not all 3.3m set top boxes will necessarily be connected to the internet.

Glossary

2G Second generation of mobile telephony systems. Uses digital transmission to support voice, low-speed data communications, and short messaging services.

2.5G In mobile telephony, 2.5G protocols extend 2G systems to provide additional features such as packet-switched connections (GPRS) and higher-speed data communications.

3G Third generation of mobile systems. Provides high-speed data transmission and supports multimedia applications such as full-motion video, video-conferencing and internet access, alongside conventional voice services.

3.5G 3.5G refers to evolutionary upgrades to 3G services starting in 2005-2006 that provide significantly enhanced performance. High Speed Downlink Packet Access is expected to become the most popular 3.5G technology (see HSDPA).

3G LTE See LTE.

802.11 see Wireless LANs (WiFi).

Access network Electronic Communications Network which connects end-users to a service provider; running from the end-user’s premise to a Local Access Node and supporting the provision of access based services. It is sometimes referred to as the local loop or last mile.

ADSL Asymmetric Digital Subscriber Line. A digital technology that allows the use of a standard telephone line to provide high-speed data communications. Allows higher speeds in one direction (towards the customer) than the other.

AM Amplitude Modulation. Type of modulation produced by varying the strength of a radio signal. This type of modulation is used by broadcasters in three frequency bands: medium frequency (MF, also known as medium wave: MW); low frequency (LF, also known as long wave: LW), and high frequency (HF, also known as short wave: SW). The term AM is often used to refer to the medium frequency band (see MF below).

BERR Department for Business, Enterprise and Regulatory Reform.

Bit-rates The rate at which digital information is carried within a specified communication channel.

Broadband A service or connection generally defined as being ‘always on’ and providing a bandwidth greater than narrowband.

Communications Act Communications Act 2003, which came into force in July 2003.

Contention ratio An indication of the number of customers who share the capacity available in an ISP’s broadband network. Figures of 50:1 for residential broadband connections and 20:1 for business are typical).

DAB Digital Audio Broadcasting. A set of internationally accepted standards for the technology by which terrestrial Digital Radio multiplex services are broadcast in the UK.

DCMS Department for Culture, Media and Sport.

Digital switchover The process of switching over the current analogue television broadcasting system to digital, as well as ensuring that people have adapted or upgraded their televisions and recording equipment to receive digital TV.

Directgov The official UK Government website for citizens, providing access to a wide range of public services.

DIUS Department for Innovation, Universities and Skills.

DMB Digital Mobile Broadcasting. A variant of the DAB digital radio standard for mobile TV services, and an alternative to DVB-H (see DVB, below).

Dongle A physical device, attached to a PC’s USB port, which adds hardware capabilities.

DRM A family of technologies and protocols used to limit duplication of digital media.

DSL Digital Subscriber Line. A family of technologies generally referred to as DSL, or xDSL, capable of transforming ordinary phone lines (also known as ‘twisted copper pairs’) into high speed digital lines, capable of supporting advanced services such as fast Internet access and video-on-demand. ADSL, HDSL (high data rate digital subscriber line) and VDSL (very high data rate digital subscriber line) are all variants of xDSL).

DTT Digital Terrestrial Television, currently most commonly delivered through the Freeview service.

DVB Digital Video Broadcasting. A set of internationally accepted open standards for digital broadcasting, including standards for distribution by satellite, cable, radio and handheld devices (the latter known as DVB-H).

DVD Digital Versatile Disc. A high capacity CD-size disc for carrying audio-visual content. Initially available read-only, but recordable formats are now available.

DVR Digital Video Recorder (also known as Personal Video Recorder and Digital Television Recorder). A digital TV set-top box including a hard disk drive which allows the user to record, pause and rewind live TV.

EPG Electronic Programme Guide. A programme schedule, typically broadcast alongside digital television or radio services, to provide information on the content and scheduling of current and future programmes.

Fibre-to-the-cabinet Access network consisting of optical fibre extending from the access node to the street cabinet. The street cabinet is usually located only a few hundred metres from the subscriber premises. The remaining segment of the access network from the cabinet to the customer is usually a copper pair but could use another technology, such as wireless.

Fibre-to-the-home A form of fibre optic communication delivery in which the optical signal reaches the end user’s living or office space.

Fibre-to-the-building A form of fibre-optic communication delivery in which an optical fibre is run directly onto the customers’ premises.

FM Frequency Modulation. Type of modulation produced by varying the frequency of a radio carrier in response to the signal to be transmitted. This is the type of modulation used by broadcasters in part of the VHF (Very High Frequency) band, known as VHF Band 2.

Format The type of programme service broadcast by radio stations. Also, the part of a radio station’s licence which describes the programme service.

Free-to-air Broadcast content that people can watch or listen to without having to pay a subscription.

GDP Gross Domestic Product.

GPRS General Packet Radio Service, a packet data service provided over so-called 2.5G mobile networks.

GPS The GPS (Global Positioning System) is a ‘constellation’ of 24 well-spaced satellites that orbit the Earth and make it possible for people with ground receivers to pinpoint their geographic location.

GSM Global Standard for Mobile Telephony, the standard used for 2G mobile systems.

HDTV High-Definition Television. A technology that provides viewers with better quality, high-resolution pictures.

Headline connection speed The theoretical maximum data speed that can be achieved by a given broadband. A number of factors, such as the quality and length of the physical line from the exchange to the customer, mean that a given customer may not experience this headline speed in practice.

HSPA Jointly, downlink and uplink mobile broadband technologies are referred to as HSPA (High Speed Packet Access) services.

International roaming A service offered by mobile operators that allows customers to use their phone abroad. The home operator has agreements with foreign operators that allows customers to make and receive calls, send and pick up text messages, and use some of the other mobile services (such as access to voicemail or topping-up credit on pre-pay phones). The exact services available and the charges for their use vary between operators.

Internet A global network of networks, using a common set of standards (e.g. the Internet Protocol), accessed by users with a computer via a service provider.

Internet-enabled mobile phone A mobile phone which allows its user to access the internet via in-built access technology such as GPRS or WCDMA.

IP (Internet Protocol) The packet data protocol used for routing and carriage of messages across the Internet and similar networks.

IPTV Internet Protocol Television. The term used for television and/or video signals that are delivered to subscribers or viewers using Internet Protocol (IP), the technology that is also used to access the Internet. Typically used in the context of streamed linear and on-demand content, but also sometimes for downloaded video clips.

ISDN Integrated Services Digital Networks. A standard developed to cover a range of voice, data, and image services intended to provide end-to-end, simultaneous handling of voice and data on a single link and network.

ISP Internet Service Provider. A company that provides access to the internet.

KTNs (Knowledge Transfer Networks) Groups bringing together communities of shared interest around emerging technologies, established and funded by Government, industry and academia, to facilitate acquisition and sharing of knowledge.

LAN (Local area network) A network for communication between computers covering a local area, like a home or an office.

Leased Line A transmission facility which is leased by an end user from a public carrier, and which is dedicated to that user’s traffic.

LLU (Local Loop Unbundling) LLU is the process where the incumbent operators (in the UK it is BT and Kingston Communications) make their local network (the lines that run from customers premises to the telephone exchange) available to other communications providers. The process requires the competitor to deploy its own equipment in the incumbent’s local exchange and to establish a backhaul connection between this equipment and its core network.

Local Loop The access network connection between the customer’s premises and the local PSTN exchange, usually a loop comprised of two copper wires.

LTE (Long Term Evolution). Part of the development of 4G mobile systems that started with 2G and 3G networks.

MMS Multimedia Messaging Service. The next generation of mobile messaging services, adding photos, pictures and audio to text messages.

Mobile Broadband Various types of wireless high-speed internet access through a portable modem, telephone or other device.

MP3 (MPEG-1 Audio Layer-3) A standard technology and format for compressing a sound sequence into a very small file (about one-twelfth the size of the original file) while preserving the original level of sound quality when it is played.

MP3 Player A device that is able to store and play back MP3 files.

MPEG Moving Picture Experts Group. A set of international standards for compression and transmission of digital audio-visual content. Most digital television services in the UK use MPEG2, but MPEG4 offers greater efficiency and is likely to be used for new services including TV over DSL and High-Definition TV.

Multichannel In the UK, this refers to the provision or receipt of television services other than the main five channels (BBC ONE & TWO, ITV1, Channel 4/S4C, Five) plus local analogue services. ‘Multichannel homes’ comprise all those with digital terrestrial TV, satellite TV, digital cable or analogue cable, or TV over broadband. Also used as a noun to refer to a channel only available on digital platforms (or analogue cable).

Multiplex A device that sends multiple signals or streams of information on a carrier at the same time in the form of a single, complex signal. The separate signals are then recovered at the receiving end.

MVNO An organisation which provides mobile telephony services to its customers, but does not have allocation of spectrum or its own wireless network.

MW See AM above.

Narrowband A service or connection providing data speeds up to 128kbit/s, such as via an analogue telephone line, or via ISD.

Next generation core networks (NGN) Internet Protocol based core networks which can support a variety of existing and new services, typically replacing multiple, single service legacy networks.

Next generation access networks (NGA) Broadband access networks that connect the end-user to the core network capable of with a bandwidth quantity and quality significantly in excess of current levels (a benchmark of 20 Mbit/s or more is often used).

Ofcom Office of Communications, the converged regulator established by the Communications Act 2003.

Oftel Office of Telecommunications, whose functions transferred to Ofcom on 29th December 2003.

PACT Producers Alliance for Cinema and Television, the UK trade association for independent film, television, animation and interactive media companies.

Paired Spectrum Radio spectrum allocated in pairs, ie with one channel at a lower frequency and another at a higher frequency, such that one channel is received by the mobile phone and the other is used to transmit. Paired spectrum is used in certain mobile technical standards.

Pay-per-view A service offering single viewings of a specific film, programme or event, provided to consumers for a one-off fee.

Peak time The period during which: a radio station broadcasts its breakfast show and, on weekdays only, also its afternoon drive-time show; a television station broadcasts its early and mid-evening schedule, typically used by Ofcom to refer to the period between 18:00 and 22:30 each day (including weekends).

Peer-to-peer distribution The process of directly transferring information, services or products between users or devices that operate on the same hierarchical level.

PSB Public Service Broadcasting, or Public Service Broadcaster. The Communications Act in the UK defines the PSBs to include the BBC, ITV1, Channel 4, Five and S4C.

PVR See DVR.

Service bundling (or multi-play) A marketing term describing the packaging together of different communications services by organisations that traditionally only offered one or two of those services.

Service provider A provider of electronic communications services to third parties whether over its own network or otherwise.

SIM-only a monthly mobile contract which is sold without a handset.

Share (radio) Proportion of total listener hours, expressed as a percentage, attributable to one station within that station’s Total Survey Area.

Share (TV) Proportion of total TV viewing to a particular channel over a specified time, expressed as a percentage of total hours of viewing.

Simulcasting The broadcasting of a television or radio programme service on more than one transmission technology (e.g. FM and MW, DAB and FM, analogue and digital terrestrial television, digital terrestrial and satellite).

SME Small to Medium sized Enterprise. A company with fewer than 250 employees.

Spectrum Radio spectrum, ie the range of electronic frequencies suitable for communication, different frequencies of which are used in broadcasting, mobile communications, satellite communications and certain other activities, either under licensed use or where licence exemptions are permitted.

Streaming content Audio or video files sent in compressed form over the internet and consumed by the user as they arrive. Streaming is different to downloading, where content is saved on the user’s hard disk before the user accesses it.

Telecommunications, or ‘Telecoms’ Conveyance over distance of speech, music and other sounds, visual images or signals by electric, magnetic or electro-magnetic means.

Transmitter A device which amplifies an electrical signal at a frequency to be converted, by means of an aerial, into an electromagnetic wave (or radio wave). The term is commonly used to include other, attached devices, which impose a more simple signal onto the frequency, which is then sent as a radio wave. The term is sometimes also used to include the cable and aerial system referred to above, and indeed the whole electrical, electronic and physical system at the site of the transmitter.

TV over DSL/TV over Broadband A technology that allows viewers to access TV content – either in a linear programme schedule, or on-demand – using Internet Protocol via broadband services, either on a PC or (via a set-top box) on a TV set.

TVWF Television Without Frontiers. A range of provisions designed to achieve coordination of the legal, regulatory and administrative frameworks of European Union member states with respect to television broadcasting, adopted by the European Council in 1989 and amended in 1997.

UMTS Universal Mobile Telecommunications System. The 3G mobile technologies most commonly used in the UK and Europe.

Usage caps Monthly limits on the amount of data which broadband users can download, imposed by some ISPs.

UWB Ultra-wideband A technology developed to transfer large amounts of data wirelessly over short distances, typically less than ten metres.

VHF Very High Frequency The part of the spectrum between 30 MHz and 300 MHz. FM radio is broadcast on part of this band (87.6 MHz to 107.9 MHz) and DAB digital radio is broadcast on another (Band III: 217.5 MHz to 230 MHz in the UK, and over a wider range, but shared with TV services, elsewhere in Europe).

VoD Video on Demand A service or technology that enables TV viewers to watch programmes or films whenever they choose to, not restricted by a linear schedule. Also Near Video on Demand (NVoD), a service based on a linear schedule that is regularly repeated on multiple channels, usually at 15-minute intervals, so that viewers are never more than 15 minutes away from the start of the next transmission.

VoIP Voice over Internet Protocol. A technology that allows users to send calls using Internet Protocol, using either the public Internet or private IP networks.

Web 2.0 A perceived second generation of web-based communities and hosted services – such as social-networking sites and wikis, which facilitate collaboration and sharing between users.

WiFi hotspot A public location which provides access to the internet using WiFi technology.

WiMAX A wireless MAN (metropolitan area network) technology, based on the 802.16 standard. Available for both fixed and mobile data applications.

Source: Ofcom

Section 4.1 – Universal connectivity: Networks

In a developed country such as Britain, everyone should be able to be part of the digital economy and digital society. The section considers whether there is a policy case for a new universality in relation to broadband.

That involves access, education and understanding, affordability, hence take-up, and connectivity for all.

Broadband today is becoming an essential means of social and economic connectedness, just as the telephone and transport links have been. As with telephone, television or transport, there will be individuals or households who choose to opt out.

Indeed, the recent Ministerial Conference on e-Inclusion held in Vienna concluded:

“Broadband is becoming an “essential commodity” like water or electricity. It is today an indispensable service for the effective participation in the global trade, economy, education, culture, politics and society. As new broadband services are developed and new and more capable infrastructures are made available old gaps may get entrenched and new gaps may arise between those who have access and can successfully exploit it and those who do not have access or lack the ability to exploit it. The Commission and the Member States are called upon to put in place measures aimed at ensuring an adequate participation to the information society, by enabling citizens to access and exploit ICT irrespective of location or socio-economic background, in particular in convergence regions and remote and rural areas of the European Union.”[3]

[3. The Presidency of the Council of the European Union. (2nd December 2008) Vienna “e-Inclusion” Ministerial
Conference conclusions http://ec.europa.eu/information_society/events/e-inclusion/2008/doc/conclusions.pdf ]

In the UK today over nine in ten households can get first generation broadband. Six in ten households have today already adopted it, a higher percentage than most other major economies. The most recent OECD survey shows the UK take-up to be well above average but it ranks 11th overall, behind the Scandinavian countries, the Netherlands, Switzerland, Korea and Canada. Small and Medium Enterprise (SME) take-up follows a similar pattern.

Several other countries are now moving to a universal service commitment for broadband. America, France, Australia and Finland have all announced plans for a universal guarantee. The Republic of Ireland is just concluding its government- tendered contract for universal availability.

There might be many different reasons why certain other countries enjoy strong records on take-up and availability, and the benefits they derive might vary. We can say with conviction that the full benefits of the digital economy and enhanced delivery of public services require practical universality – and take-up – particularly for those services directed at sections of society most in need of them. This will be particularly relevant to those on lower incomes, older people or those remote from the physical distribution points for public service and other currently excluded communities and groups.

In some respects the UK is well placed. Technology innovation has taken broadband beyond the PC to other devices, the mobile phone and television set-top boxes, that those sections of society who are not PC-enabled are more inclined to use. Our take-up of commercial online services is high, and judged by the proportion of total advertising now conducted online, the UK online market is ahead of all other major markets. Indeed, public services are widely available online: some 89% of services, compared to around 70% in France and Germany.[4] UK take-up of e-Government by individual citizens is only slightly above the EU average; and take-up by businesses below the EU average. [4. Source European Commission 2008 ]

But if by 2012 we have a society where 50 per cent of the population has very high speed broadband, 40 per cent has first generation broadband but little prospect of market-led upgrade to next generation broadband, and up to ten per cent of homes are still in not-spots, not-a-lot spots or not-at-all good spots, then the gulf in access and connectivity will appear starker than it is today.

We believe we need to do more to drive connectivity, capacity and take-up [5]. [5 As well as the public and social benefits of e-inclusion, high take-up also makes further investment in networks
more attractive. ]

On connectivity, the simple, fairness point is that broadband access is already a boundary point of the divide from social exclusion. Today, the broadband-enabled population have easy access to information, education, e-commerce (including special tariff deals), BBC Licence-Fee funded services to which all licence payers contribute and public services, including health and schools, to which the whole public and, locally all council tax-payers, contribute. Efficiency demands easy online access to those services. Fairness demands that all should be able to get reasonable access. Where consumers are already paying for content or services, their access needs are considered by the body which is responsible.

The Government needs to drive to promote the adoption of e-public services by businesses and individuals. This requires careful design of how the services are delivered, but also the right promotion. For example a vigorous information campaign, combined with financial incentives, saw the number of businesses completing their Employer Annual Returns for tax online jump more than ten-fold in a single year, to well over 1 million businesses now.

But in order to maximise the impact of e-government, we also need to ensure universal access to broadband-delivered services at necessary speeds. That means having broadband which supports public services which are inherently information and audio-visual content-rich, such as education and health services.

We propose a Universal Service Commitment in broadband by 2012.

Universal availability of service has traditionally been provided by means of a universal service obligation (USO). The concept of a USO was originally used in the case of the Royal Mail and was implemented in 1840. A USO was imposed on British Telecom at the point of privatisation in 1984, requiring it to provide voice and basic data to any premises in the UK (save for Kingston upon Hull, which is subject to a separate universal service obligation imposed on Kingston Communications (KCom)).

The USO requires BT to ensure that their services are affordable (which it has traditionally achieved through the offering of special tariffs) and that services are offered for people with disabilities. In infrastructure terms, they must secure (and pay for) the provision of a network of public call boxes and ensure that all households and businesses are connected by fixed line capable of supporting voice telephony and functional, narrowband internet access. Where the cost of such a connection exceeds £3,400 the consumer must pay the excess.

The costs of the USO currently fall on BT and KCom, and the proportionality of these costs is assessed by Ofcom in view of the benefits associated with universal service.

The Government remains committed to the principle of universality. We believe that principle can be updated to reflect the changed market and customer expectations in terms of technology.

The existing USO model has been appropriate during a time when the fixed line was the norm for communication and BT held a pre-eminent position in the market. Now that communications for voice and data have become accessible by different means and through a market that is considerably more complex, we need to ensure our ambitions for universality are delivered in a way which reflects reality today.

In considering the desired level of minimum service, we will need to take into account several factors including:

* The levels of broadband speeds most commonly subscribed to in the population as a whole;

* The sorts of online services which consumers want and expect;

* The public services, such as education or remote health, for which delivery depends on a certain speed; and

* The point at which a level of service can be delivered ubiquitously at proportionate and reasonable cost.

We also need to take into account as far as we can the likely evolution of technology and the market, such that we do not lock ourselves into a minimum level which is outdated within a limited number of years.

Our first consideration needs to be the different levels of broadband speed and the services they deliver to consumers. A short summary of the services supported by different speeds is below.

Broadband Services

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We then need to consider the availability of different speeds via market investment. In Great Britain, the current availability of broadband over BT’s network is as follows.

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The table above shows the expected modelled capabilities of BT’s current active copper lines to support various downstream data rates using the current DSL max service. With the rollout of the 21CN programme, we expect ADSL2+ technologies to increase the percentage of lines capable of delivering each of these bandwidths, taking the coverage closer to 100%. By 2012 perhaps one third of households not so served today will be within 2Mbps coverage.

The actual data rate achieved by an end user and thus the percentage of lines capable of achieving these data rates, as perceived by customers, may vary from these figures due to a number of factors including the impact of internal home wiring, the capabilities of the customer’s router/modem, CP contention, and error limits in the underlying model used to predict network performance.

Additionally, these figures provide a reasonable proxy for overall broadband availability but they are not exact; the BT not-spots will overlap in some areas with cable or mobile availability meaning that the true availability might be slightly different.

Based on these factors, there are a number of practical options as to the choice of speed. For example:

* A 512kb/s universal service commitment would provide a relatively small number of consumers with limited benefits. Market investments are likely by 2012 to have ensured that such a service already reaches a level that many would think of as universal (i.e. it is equivalent to the proportion of households that can receive terrestrial broadcast TV). The disadvantage of this level is that it remains a very basic broadband connection which will be increasingly out of step with the highest speeds available and those to which the bulk of broadband customers subscribe.

* A 1Mb/s universal service would carry greater costs due to the greater number of lines to upgrade, but would support more services. In the short term, speeds delivered by this connectivity would match many consumers’ expectations. It does not support long-form video content. Evidence today is that consumers, particularly in 15-24 age bracket, are increasingly using the internet for video content [6], and we can expect this trend to continue. [6. 26% of the 15-24 age bracket used the internet for ‘watching TV programmes’ in 2008, up by 16 percentage points in 12 months. 51% used it for watching video clips/webcasts over the same period (Source Ofcom). See also statistics on iplayer use. ]

* A 2Mb/s service would carry further initial costs, but would enable a substantially higher number of households to upgrade to what by 2012 will be in step with standard broadband usage. It might also be future-proofed in that the prospect of requirements for a future upgrade is lower than if the universal service commitment was set at a more basic level.

In making a decision between these levels of service (or any other level of service), there are a number of trade-offs to be made:

a.   the speed chosen

b.  the absolute number of homes connected at which universality is considered to be achieved (as noted above, universality in terrestrial broadcast networks is considered to have been achieved at 98.5%)

c.   the type and capability of connection – fixed and wireless solutions (including satellite) may each have a role to play

d.  the cost

Our initial assessment, subject to detailed analysis, is that a 2Mb/s universal service commitment could, with careful policy design, strike the right balance between these factors.

Before making a decision, though, the Government, its European counterparts and Ofcom will need to do more to assess the ramifications of universal provision at a given speed in light of these factors. We will be inviting further comments and would welcome views on the costs and benefits of connectivity at different speeds.

Once the desired level of service has been established we will need to determine the mechanisms by which it can be delivered. Today only around 60% of households are customers of BT Retail; in broadband that figure falls to around 25%. The case for significant extra costs to fall on BT Group plc alone is a weak one. We expect that the costs of a future universal service commitment could be shared more widely, as it is in other countries, between a range of communications providers, and those who provide communication services over the network.

The contribution could be financial or in kind (for example, if the mobile network operators continued to build out their networks towards near-universal coverage, facilitated by the acquisition of additional wireless radio spectrum discussed earlier). Any new universal scheme design would need to ensure that it did not have negative effects on the market. In order to ensure those contributions remain proportionate to the end benefits, we expect that, as with today’s USO, the end consumer should, beyond a certain point, make a contribution to the cost of providing connectivity.

Of course, there have already been steps taken in the UK – as highlighted above – to close not-spots. We intend to work closely with colleagues in the devolved administrations and the English Regional Development Agencies to ensure that their investment in broadband coverage works with our policies and public expenditure is not wasted or duplicated.

In Europe we will work with other member states to update the current universal services framework and to assess the options for provision and funding of such a commitment. This will enable us to modernise our domestic universal service policies to be fit for purpose in the digital era.

We are inviting views on the design and operation of a new, more broadly-based scheme for the fully digital age- how extensive it should be, who should contribute, how far any extension of coverage of other operators’ networks (e.g. mobile networks) should already represent their contribution in kind, governance and accountability.

ACTION 17

We will develop plans for a digital Universal Service Commitment to be effective by 2012, delivered by a mixture of fixed and mobile, wired and wireless means. Subject to further study of the costs and benefits, we will set out our plans for the level of service which we believe should be universal. We anticipate this consideration will include options up to 2Mb/s.

ACTION 18

We will develop detailed proposals for the design and operation of a new, more broadly-based scheme to fund the Universal Service Commitment for the fully digital age – including who should contribute and its governance and accountability structures.