Bringing broadband to rural areas could 'cost UK billions'

Delivering high-speed, affordable broadband connectivity to remote and rural parts of the UK could cost billions of pounds in public funds, it has emerged.

Chancellor Alistair Darling recently affirmed in his Budget statement the Digital Britain pledge to provide broadband of a minimum speed of 2Mbps to every household by 2012.

Writing in the Daily Telegraph, technology journalist Matt Warman warned that connecting every UK-based consumer to fixed-network broadband could cost the government billions of pounds.

This is primarily because of the cost involved in rolling-out cable networks in rural areas where there may be limited existing infrastructure, which in turn could lead to a widening digital divide in the UK.

As the private sector may refuse to bear this cost, the government may have to get involved, which could place a strain on the public purse.

However, the utilisation of satellite service providers or mobilebroadband technology could prove important in reaching remote areas without such a prohibitive cost.

In related news, a £100 million Digital Region project has been announced to boost the roll-out of next-generation broadband infrastructure in South Yorkshire.