Private investors 'put off by prospect of next-gen broadband'

28th November 2008

Investors might be unwilling or unable to fund the next generation of super-fast broadband in the UK as the current market in communications technology is unpredictable, it has been said.

Head of communications at Ernst & Young Mark Gregory made his comments to the Westminster eForum keynote seminar, Next Generation Broadband.

Mr Gregory continued: "The economics of current broadband are fragile at best, so I don't think private investors are going to be able to make the case to take them a step forward to the next generation as it stands."

He added that it may be better than the systems for internet access now used but the investment may not produce any solid returns as the technology is still experimental and unproven, making it a questionable funding opportunity.

According to Ofcom's Executive Summary published in September, broadband was rated as one of the most significant developments in communications in recent times, with 58 per cent of homes adopting the technology in eight years.

A recent Connect survey found that the two major concerns about outsourcing services like IT support were 'loss of control' (56 per cent) and 'budget over-runs' (43 per cent).