Autumn Statement and Spending Review 2015: broadband investment fund could support 'alternative network developers'

The "broadband investment fund" would help "alternative network developers" to grow and compete with traditional broadband providers, according to the proposals outlined in the Autumn Statement and Spending Review policy paper published on Wednesday.

"Competition between broadband providers supports the delivery of the fast and reliable broadband a modern, productive economy needs," the government said. "Innovative approaches to supporting the market will help deliver ultrafast speeds to nearly all premises. The government will explore setting up a new broadband investment fund, to support the growth of alternative network developers by providing greater access to finance. The fund would be supported by both public and private investors, and would be managed by the private sector on a commercial basis."

In March the previous coalition government pledged to ensure 'ultrafast' broadband is made "available to nearly all UK premises as soon as practicable". Ultrafast broadband was deemed by the coalition government to mean internet speeds measuring at least 100 mbps.

At the time it said that "innovative financial and commercial models" could be used to encourage investment in telecoms infrastructure and help deliver 'ultrafast' broadband services to businesses and communities in the UK. It suggested mobile broadband technologies, alongside new and faster fixed-line internet service technologies, could be relied upon to achieve the ultrafast broadband goal.

The Conservative party reiterated their intention to progress with the ultrafast broadband plans if they won the UK general election in May, which they did.

In the Autumn Statement and Spending Review policy paper, the government also said it would complete the ongoing project of delivering access to 'superfast' broadband services to at least 95% of premises by 2017. Superfast broadband refers to internet speeds of at least 30 megabits per second (mbps).

Telecoms expert Reg Dhanjal of Pinsent Masons, the law firm behind Out-Law.com, said: "This is welcome news for alternative infrastructure providers and a positive step in addressing challenges for both superfast coverage to the final 10% and also rollout of ultrafast broadband. As always, we will have to wait for the detailed proposals to assess how the supplier market will react."

Up to £550 million is also to be invested over the course of the current parliament "to make the 700Mhz spectrum band available for mobile broadband use", the government said.

"The government’s investment in 700Mhz spectrum is a positive sign for the extension of mobile coverage into hard-to-reach areas," telecoms expert Dan O'Neill of Pinsent Masons said. "However, there will need to be cross-industry collaboration to minimise the impact on digital terrestrial television."

The government said it is also planning to publish a "digital transformation plan" early next year "to ensure the benefits of digital communications infrastructures are felt across the economy and translated into productivity gains". Ofcom is currently conducting an "overarching review of the UK’s digital communications" in a move aimed at future-proofing investment and competition in the market.