Proceeds raised from next year’s UK 4G spectrum auction should be used to support plans for a national high-speed broadband network, according to the Communication Workers Union (CWU).
CWU deputy general secretary Andy Kerr believes the current £830m…
Proceeds raised from next year’s UK 4G spectrum auction should be used to support plans for a national high-speed broadband network, according to the Communication Workers Union (CWU).
CWU deputy general secretary Andy Kerr believes the current £830m commitment by the government until 2017 is insufficient to deliver superfast broadband to all parts of the UK.
“The current plan will leave remote areas in places such as East Anglia, Scotland and Cumbria with no rollout plans,” said Kerr.
“Residents and businesses in these areas will lose out unless funding arrangements change … Early investment in universal broadband will pay dividends many times over so we urge swift action to put the UK at the head of the superfast broadband revolution.”
CWU expects the 4G auction will fetch £4bn more for the Treasury than the £20bn that was raised from its 3G auction in 2000.
However, Ed Richards, CEO of regulator Ofcom, told journalists in London on 22 March that the auction’s rules, which include a series of bidding floors and caps, were designed to keep competition in the market, rather than focusing on maximum revenues for the Treasury.
Indeed, reports have suggested the government is likely to raise just £2bn from the auction because of the restrictions imposed by Ofcom on spectrum allocations.
