WIRE OPENAn archive editionSEARCHARCHIVERSS
EST. 2000
UKTECH
THE IT-CONTRACTING & TAX RECORD
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E-Minister and E-Envoy both demand broadband speed-up

E-Commerce Minister Douglas Alexander has told BT it must exploit the UK's broadband investment more aggressively. At the same time, the E-Envoy has called on the Chancellor to create a new fund to pay for broadband for local authorities.

Douglas Alexander made the request when he met business and consumer leaders to review the Broadband Stakeholder Group's first report. The Group, an open forum comprising organisations from the broadband infrastructure, services and content sectors, was set up in March following the publication of the 'UK online: The Broadband Future' white paper.

Mr Alexander, who chairs the Group, said: "We are publishing a summary of the Group's work today in order to help make that debate even broader, and will now be working with the stakeholders to produce both a full report and Government response for publication in November.

"But action must not wait until then. We need the industry to be driving prices down, and driving demand up. BT has a particular responsibility here. I welcome the commitment BT has already made to broadband. 60 per cent of all households, some 13 million homes, are now connected to a BT ADSL enabled exchange - that represents a huge investment by BT in broadband Britain.

"BT must now exploit that investment more aggressively."

Andrew Pinder, the E-Envoy charged with the £1 billion project to put the Government online, is also lobbying the Treasury for fresh cash. Mr Pinder has asked the Chancellor to create a new fund for local authorities to have broadband installed.

The E-Envoy has proposed that the public sector IT procurement rules need to be changed. At present, most local authority departments receive funding for IT projects. However, they do not receive money to wire up and pay for broadband services.

The Chancellor, Gordon Brown, however, has resisted previous calls for more Internet money.

If the plan is successfully introduced it may help lessen the UK's digital divide, where up to 40 per cent of the UK population could be excluded from broadband services.

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Richard Powell, UKTECH

END OF ARTICLE ▪ FILED FROM LONDON