INDUSTRY news
Broadband industry reacts to the landslide Labour victory After the landslide victory to the Labour
Project Gigabit Labour’s previous scepticism of Project Gigabit’s slow progress, especially in remote areas, has led to speculation that the scheme would be scrapped altogether and replaced with a more nationalised approach to the broadband roll out. However, Chris Bryant, the new DCMS Minister has since ruled that out and at the time of writing, the scheme will remain in place. Ian Nock, Managing Consultant, Fairmile West feels this is the right approach. “The new government has made it clear that it sees consistency and prudent decision making around innovation, investment and sustainability as a key delivery, which is important after the protracted period of instability that we have had since 2016, due to Brexit, Covid and erratic financial decisions.” He went on, “The focus on improved Gigabit broadband for all, improved sustainability for energy production, returning to timeline commitments for Net Zero balanced with investment and looking to put media investment on a sure footing for the future are what’s important.” Laura Baskeyfield, Account Manager at VIAVI and SCTE Executive Committee member had concerns about the housebuilding targets in Labour’s manifesto and said, “I’d be interested to know what an additional 1.5m homes mean for current BDUK/ISP targets. Openreach were targeting 25m homes passed by 2026. A number of these will be MDU’s, so will the wayleave issue be addressed and if so, how?”
Party on July 4, the UK broadband industry has reacted with a blend of anticipation, optimism and strategic reassessment. Policy changes, potential impacts on the economy and broader implications for business operations are likely. The last 8 years have been chaotic and directionless, especially since the Boris Johnson administration in 2019, so while there is caution, equally there appears to be a collective sigh of relief. Labour’s ambitious agenda, which includes significant investments in digital infrastructure and a focus on reducing the digital divide, presents both opportunities and challenges and the industry is preparing for both, it would appear.
Digital Infrastructure Investment
Keir Starmer’s commitment to boosting digital infrastructure, particularly in underserved areas is being welcomed, and promises of increased public funding for broadband expansion and 5G networks are also seen as a positive, providing the financial support needed to accelerate these projects. The thinking is this could lead to faster rollouts, improved service quality and expanded coverage, particularly in rural and economically disadvantaged regions. While the industry has moved ahead at pace since the pandemic, there are still sizable areas underserved and stagnating investment, coupled with lack of economic growth and inflation (having only very recently returned to pre- pandemic levels), has not helped matters. Labour’s manifesto makes particular reference to achieving 5G Standalone (SA) coverage in the UK by 2030, a marked shift from the previous administration, because, as thought leader Iqbal Bedi of IntelligensConsulting.com points out: “Standalone 5G (SA 5G) networks bring benefits of ultra-low latency and support advanced features such as network slicing. However, SA 5G requires significant levels of investment, and until now only a handful of UK cities have benefited from SA 5G networks.”
He concluded that Labour’s approach might appear less ambitious but may be more pragmatic than the status quo, arguably characteristic of the party’s approach in general, something that they have been both praised and criticised for in equal measure. “By not limiting their strategy to SA 5G, they may have more flexibility in using a combination of existing and emerging technologies to achieve their coverage goals. This could make their plan more achievable within the given timeframe, especially in rural areas, where deploying standalone 5G may not be economically viable.” The revival of public-private partnerships, last embraced in the Blair government of the 90s to achieve digital goals will see business collaborating with the government on large-scale projects; the hope is that could open up new revenue streams and foster innovation. Companies in turn will seek to leverage public funding and support to enhance their offerings and extend their market reach, resulting in a likely realignment of strategy as areas for government investment are identified.
The new government’s inbox is certainly filling up.
Training The appointment of Bridget Philipson, the Secretary of State for Education will see a priority made of education and training, particularly in digital skills, where there is a recognised shortage, which is seen as another positive for the telecoms sector. This has been broadly welcomed by industry experts, one of whom told Broadband, “We are losing skill sets
30
Volume 46 No.3 September 2024
Made with FlippingBook flipbook maker