The UK government is reconsidering how it can deliver broadband services to rural communities in light of its failed auction for wireless internet spectrum licences.

In a White Paper published last week - A Fair Deal for Rural England - the government promised a review of broadband services in rural areas.

The Paper, introduced by Deputy Prime Minister John Prescott, said that Downing Street will "review the need for an expanded universal service obligation to include access to high-speed internet connections in light of the coverage delivered by the market".

In November, the government raised only £38m for licences covering the main metropolitan areas of the UK. There were no takers for licences covering most areas outside the big cities.

The money raised was in stark contrast to the £22.5bn collected from the third-generation mobile licence auction earlier in the year. And the lack of a widespread service offered by the new wireless internet entrants has led to questions about the government's commitment to providing a universal service to those wanting to take part in the e-economy.

A Department of the Environment spokeswoman told Network News: "This review is designed to fill in the gaps."

It is not clear how long the review will take, but user groups have pledged to take part in consultations with the government. The Communications Management Association says it will participate in an enquiry ordered by the Department of Trade and Industry into the failure of the wireless internet auction.

The Paper is also committed to providing more CCTV systems in rural communities, and the delivery of video and telelinks for the provision of healthcare.

First published in Network News

See also:

3G licences 'a waste of money'

Mobile operators that paid huge sums for third-generation licences have wasted their money, according to Finnish professor Hannu Kari.  13 Dec 2000

Excite, Chello merger ends on a bum note

The proposed merger between European high-speed internet provider Chello and the non-US operations of Excite@Home has been scrapped.  05 Dec 2000

Government probes wireless auction flop

The future of spectrum auctions in the UK is unclear after the government sold only 16 of its 42 available broadband licences, none of which went to rural areas.  30 Nov 2000

Quantum offers 'bandwidth on demand'

Networking firm Quantum Bridge Communications has claimed that its fibre optic technology is a better choice than digital subscriber line when it comes to solving the problem of bandwidth bottlenecks in the local loop.  27 Nov 2000

Like this story? Spread the news by clicking below:

 del.icio.us     Digg this     reddit!