European countries are lagging on fibre-based broadband networks, even though modern communications networks are a key factor in the competition for investment at regional and international level. According to OECD estimates, by 2011 broadband communication will generate one-third of the productivity gains made by highly developed nations.
US consultants Booz & Co say in a paper published last month that next-generation broadband networks promise much faster transfer of information, services, and benefits throughout a national economy, promoting overall growth, productivity, and prosperity. For that reason, public policymakers are seeking to stimulate or contribute significant investments to establish such networks. Yet the hurdles to deploying next-generation broadband are significant: Private investment in the sector hangs on greater certainty over revenue, regulation, and technology.
The paper says government policymakers can play a role in reducing these hurdles and providing greater certainty and support for deployments. The policy choices they make will likely determine how much their nations benefit from deployment of next-generation broadband.
According to Booz & Co, Ireland is spending $25 per capita on fibre networks, compared with $205 by New Zealand and $100 by Portugal.
Deutsche Bank economist Stefan Heng says that we are already seeing businesses around the world integrate new forms of communication into their processes. In the personal environment, too, interactive Web 2.0 services and social networks, and especially online games and internet TV, are also attracting increasing numbers of users. On the one hand, all these new services will drive the development of the economy, but on the other hand - - because of their constantly growing capacity requirements - - they will also increasingly stretch the capacities of the current fixed-line and mobile infrastructures to their limits.
Heng says despite this awareness of the importance of broadband access, in many countries there is a gulf between vision and reality in the provision of modern communications infrastructure. To give an example, the “usual suspects” in Asia are the leading countries in an international comparison of network providers offering “fibre to the home” (FTTH). Sweden, Norway and Slovenia lag behind them at a considerable distance. By contrast, the other countries of Europe, which remain poorly equipped in comparison, run the risk of being able to reap only meagre benefits from the advances being made in today’s information society. Therefore, in Germany especially, the politicians and the private sector have their work cut out. It is key that they join forces to test the waters for ways to resolve the economic problem of making the necessary investments in infrastructure in a market organised along competitive lines.
Booz & Co: Digital Highways: The Role of Government in 21st-Century Infrastructure
OECD Broadband Portal
Global study gives Ireland's broadband high ranking for penetration; Low grades behind some developing economies for quality
Two weeks ago, Irish telco Imagine announced a €100m investment in the presence of executives from US tech companies Motorola and Intel, to provide a high-speed WiMax service in Ireland, which is is a form of wireless broadband which will allow users to bypass Eircom's fixed-line network.
"This type of technology is a game-changing technology in the way we live, work and play," said Jim O'Hara, Intel Ireland head, at a press conference in Dublin
Imagine plans to install hardware made by Motorola, on 350 masts around the country over the next two years to ensure that 90% of the population has access to the high-speed internet.
Intel will supply the chips.
“The proposition is very simple - - we are providing a fourth-generation network for Ireland delivering European broadband speeds at European prices,” said Imagine founder Seán Bolger.
He said there was significant pent-up demand for the service which will initially be available at speeds of 7Mbits/sec.
