Funds for Broadband infrastructure not enough

UK broadbandA research organization, Point Topic has warned that funding for the upgradation of broadband infrastructure in the UK in not enough.

The firm also said that the making the country's network the best in Europe by 2015 is not feasible. The government is planning to invest £530 million for the the improvement of the UK's broadband infrastructure.

The research found that the government will have to subsidies 6.3 million homes and businesses to get affordable superfast broadband. The firm estimates that the entire allocation will be used up in subsidizing
900,000 homes alone.

"The coalition says it aims to provide the UK with the best superfast broadband in Europe, with a minimum 2Mbps megabits per second connection speed for every household," said Tim Johnson, chief analyst at Point Topic. "To hit that they will have to find a lot more money from somewhere."

He pointed out that the government is missing out on some economic benefits by not allotting enough funding for upgrading internet services in its infrastructure investment programme, which is worth £40 billion.

Meanwhile, the Department for Business, Innovation and Skills (BIS) has said that it will release a strategy paper on broadband next month, after the government announced its plans on upgrading broadband infrastructure in the country.