Broadband prices 'set to increase' under new USO

Broadband prices could increase if the government goes ahead with implementing its universal service obligation (USO), according to a statement made by the Internet Service Providers Association (ISPA).

They warn that if the government does not invest in significantly improving the infrastructure, then costs will inevitably rise. It states that the government’s plans to put a levy on internet service providers (ISPs) is anti-competitive and will force companies to pass costs onto consumers.

The statement urges the government to use public funding to provide better broadband speeds. As a result of this move, the cost of bringing the broadband networks up to scratch won’t fall entirely onto ISPs and as means that the bills won’t increase. The ISPA also called for the public funding to be uses specifically in rural and hard to reach areas. The statement suggests this would be the optimum way to achieve the USO and the best way to use public funds. “ISPA supports the principle of broadband universality so that everyone in society can benefit from being online with a good, reliable connection," the Association said in a statement.

"We also feel that should the USO go ahead; it should not be funded through an industry levy… this will end up being reflected in broadband prices, meaning the cost will end up being shouldered by the consumer."

The ISPA also called for the USO to be defined properly and its aims and ambitions to be more specific than they currently are. They urge the government to clarify timescales, the total cost of the USO and how quickly the new speeds can be delivered. They also request that the specification of the USO be as “technology neutral” as possible to account for other technologies that can provide broadband, such as satellites and 4G.

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(Image: Kainet)