Point Topic: Public funding needed to develop next-generation broadband

Public funding will be needed if homes and businesses in rural areas of the UK are to benefit from next-generation broadband services, according to Point Topic.

The broadband communications services information company has supported the position taken by major internet service provider BT, which says public funding is necessary to provide high-speed broadband throughout the UK.

A telephone line tax is set to be imposed by the government before the next general election charging £6 a year for all homeowners who have a telephone line to help fund next-generation networks, but the Conservatives have said they will remove this if they win power.

Tim Johnson, chief analyst at Point Topic, said: "BT saying deploying fibre more widely requires support from the public sector is a shot across the bows of the Tory party, who don't like this kind of thing."

BT is set to invest around £200 million in fibre-to-the-premises fibre technology, which could help boost broadband speeds and make applications like VoIP solutions more effective.

Wireless and satellite technology are other potential solutions to providing rural communities with high-speed broadband connections.