IT-driven economy attracts £530 million broadband investment

The project is designed to build the infrastructure needed to raise broadband standards crucial to IT development and create parity across the country.  This means that London, which was adjudged to have sufficient broadband quality, will not receive any funding.  In contrast, Devon and Somerset will enjoy the biggest cash injection, having been allocated £32 million.

Culture secretary Jeremy Hunt explains why such a large amount was being pledged given the paucity of public finances.  “Fast broadband is vital to our economic growth.  But some areas of the UK are missing out, with many rural and hard-to-reach communities suffering painfully slow internet connections or no coverage at all. We are not prepared to let some parts of our country get left behind in the digital age.”

Competition for broadband business customers and consumers, who are seeking improved bandwidth to accommodate a growing number of wifi devices and power cloud-based IT, is also driving private sector broadband investment.  Virgin Media recently announced it would be expanding its fibre optic network, with extra cables being laid capable of delivering 25mg speeds to an additional 100,000 households in the UK and Ireland.