investing in communications
Jeremy Hunt cites a catalogue of suc-
cesses under a previous Conservative
Digital at an unacceptable price
government; one in which more than 150 The pace of new investment might prove
local cable licences were issued and a stumbling block for another area of the
where telecommunications were liber- Digital Britain canvas. The Carter Re-
alised, both at the beginning of the ‘90s. port’s recommendation that the Digital
Permitting telecoms over cable was the Audio Broadcast standard should replace
trigger for billions of pounds of investment the present national analogue radio net-
to pour into that environment; much of it works was received favourably by the
from the major US-owned operators. Conservative spokesman.
According to Hunt, what happened Given the widespread dissatisfaction
back in the 1990s was an example of with the quality of DAB radio coverage
successful and enlightened intervention
Hunt argued that Digital Britain
amongst listeners, was it not possible
in the marketplace, unleashing a cable
had failed to deliver anything
that support for switching over to this
and satellite revolution.
substantive, the document being
technology until there had been exten-
“Because of the competition with sat- sive investment in transmitters to fill in
ellite, most people say that the British
little more than a collection of
the areas of poor reception would serve
public sector broadcasting environment
is more competitive than anywhere else
sector analyses topped off with
only to antagonise the voters of Middle
in the world.”
statements of ambition,
England at a critical time?
Conditions have changed out of all “Apart from announcing twelve
“There is much more that needs to be
done before we switchover. I thought it
recognition since the heady days of lib-
eralisation, however. The creative tele-
consultations and a quango, the
was the height of irresponsibility to an-
coms network initiatives were either
Report failed to establish a single
nounce the phasing out of analogue
swallowed up into Virgin via the acquisi-
action in what is an immensely
spectrum without announcing any de-
tails or any funding for a help scheme,
tive NTL brand or simply withered on the
vine through lack of investment.
complex but vitally important
similar to the one that was in place for
area for the economy.”
TV switchover.
“There is a danger that this will cause
Can investment be stimulated?
widespread concern among millions of
internet speeds to 8 Mbps and beyond, radio listeners who will feel that they
There is effectively a single cable op- and thereby opening up a new raft of are faced with the unenviable choice of
erator independent of BT today and new opportunities for the creative sectors? either paying up or switching off.”
investment in the sector has dried up. “I won’t make judgements on indi-
Telecoms service vendors now come vidual companies but it is the Govern-
into the marketplace by re-packaging ment’s responsibility to ensure that the
Pushing local TV coverage
capacity purchased wholesale from BT regulatory environment stimulates in- Jeremy Hunt is on record promoting the
rather than having invested in the build- vestment in communications infrastruc- case for greater investment in local
ing of network infrastructure. ture. This investment could come from rather than regional independent TV
Given the prevailing conditions for incumbent operators or new entrants. news coverage, drawing on US experi-
communications, does the Shadow Sec- Opening up BT’s ducts for instance ence, where small communities have
retary believe that the private sector will would provide a competitive spur for in- access to TV stations delivering local
see sufficient returns from their existing vestment from across the industry which news within syndicated TV channels. “This
investments to stimulate new invest- would create these new opportunities for superior level of service is achieved with-
ment at a level which will take average our creative economy.” out public funding.”
It is the Government’s responsibility to ensure that the regulatory environment stimulates investment
in communications infrastructure. Investment could come from incumbent operators or new entrants.
38
38
The Informed Executive
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