BSG: Broadband should not be a utility
The Broadband Stakeholder Group (BSG) has spoken out against new proposals to reclassify broadband as a utility and put the sector on a par with water, gas and electricity.
Matthew Evans, chief executive at BSG, argued that reclassifying broadband as a utility may result in higher prices in the long run, while investment in networks may also be reduced.
In a statement, he explained digital connectivity is increasing expectations among businesses and the public of how well broadband works and making the sector a utility could damage that.
Mr Evans said: "Industry is determined to meet this demand by expanding both the capacity and coverage of the broadband network – indeed it has already made huge strides to do so.
"Everyone wishes that this could be done faster and cheaper but we should be very careful about accepting that simply by designating broadband as a public utility – and regulating it as such – would assist us on the way to the goal."
The BSG leader added that drastic improvements to customer quality have been delivered in the UK broadband market in recent years as a result of it being "fiercely competitive". However, he claimed reclassifying broadband as a utility would not address some of the industry's main issues.
Some firms in rural areas are still struggling on basic business broadband connections and making broadband a utility could cut investment and leave them without future access to superfast internet speeds, Mr Evans said.
He also noted any change to how broadband is classified would add to the regulatory burden for providers, which he said "is the opposite of what we should be pursuing".
The BSG chief executive added: "We should be making it both easier and cheaper to deploy and upgrade digital infrastructure by reforming both the Electronic Communications Code and providing more certainty in the planning regime."
Mr Evans was responding to a recommendation from peers in the House of Lords.
Businesses looking to move services into the cloud should evaluate the performance of their existing network and consider setting up a leased line or MPLS network.
