CNF

In a draft report on the future of the telecoms and media industries seen by The Financial Times, Lord Carter will propose a "universal service commitment" to broadband – akin to the guarantee offered on postal services and fixed-line telephones – that by 2012 would provide minimum download speeds of 2 megabits per second to every household that wants it.

The communications industry is seen by the government as one of the sectors that could help bolster the country's failing economy.

About 40 per cent of homes did not have broadband by last year, according to Ofcom, the telecoms regulator, and some households – especially in remote areas – lacked the necessary infrastructure to secure it. The task of delivering on the commitment would rest with the private sector but fall on a combination of fixed-line and mobile operators because it is likely to be too expensive to roll out wired broadband networks to all.

The report has noted that using wireless broadband to fill the gaps is threatened by a dispute between mobile operators and Ofcom over the release of radio spectrum capable of supplying internet access. If no settlement is reached, the report will say the government will "impose a solution".

Funding for the new infrastructure is likely to come mostly from the private sector. The report is expected to recommend some "fiscal relief", yet the Treasury may veto that in light of its increased spending commitments.

The Department for Culture and the Department for Business said the report was "still at the very early stages of drafting".

Source: http://www.publicservice.co.uk/news_story.asp?id=8237&topic=e-government