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Delivering Digital Britain

0The CWU is campaigning for economic growth, job creation and social inclusion in a digital Britain.

Superfast broadband networks have the potential to create jobs and boost the UK's fragile economy, but the Government's target for the best broadband network in Europe is doomed to fail without a much stronger commitment to public investment.

The private sector is forecast to take superfast broadband to two thirds of UK homes and businesses by 2015, but without far greater public sector investment, the remaining third of the population will be left the wrong side of a rapidly expanding digital divide.

The CWU is calling for:

A legally binding universal service 'obligation' for broadband
The Government's 'commitment' to universal broadband of 2mbps by 2015 is a promise of best endeavours and does not guarantee roll out to 100% of homes and businesses

Far greater public investment for the swift universal roll out of fibre and other high speed broadband networks
The market has made it clear that it will only deliver superfast broadband to two thirds of the population. The government has pledged £530m of investment by 2015, but this falls a long way short of the amount needed to reach the remaining third and avoid a widening digital divide.

A requirement for employers to provide workforce training in the telecoms sector, which is vital to delivering a successful Digital Britain
There is a law that requires Ofcom to promote workforce training in the broadcasting industry, and the CWU has been campaigning for some time to get this extended to the telecommunications industry as the two sectors converge.

A level playing field for competition in the pay TV market
Ofcom has started to address this issue partially by ensuring Sky provides two premium sports channels on a wholesale basis, but there is more work to do. Greater competition in pay TV will generate the innovation and lower prices required to drive demand for faster broadband services, which is essential to delivering broadband investment for the UK.

Sky should be required to offer more of its channels, including premium film channels, on a wholesale basis, if we are to see fair competition, more choice and lower prices for consumers.

In August 2010, Ofcom referred its investigation into the pay TV movies market to the Competition Commission, saying it was concerned that the way movies are sold and distributed means Sky has the incentive and ability to distort competition. Ofcom states that 'the end result for consumers is less choice, less innovation and higher prices'. The Competition Commission has a maximum of two years to investigate and reach a decision on the concerns raised by Ofcom.

What you can do
This campaign is relevant to both CWU members and the wider public, because it promises to benefit society as a whole through job creation, improved access to online goods and services, and better prospects for economic growth and social cohesion.

Branches and members can play a vital role in promoting these aims, by spreading the word amongst colleagues, friends, and family, and lobbying your MP to promote these aims and provide government support for better, faster broadband in your area.

Further background:

The Coalition Government has set itself a goal of delivering the best superfast broadband network in Europe by 2015. But the Government has committed only £530m of public investment until 2015, which is going to be nowhere near enough to ensure high speed broadband reaches every UK citizen.

The French government by contrast is committing £570m every year between now and 2025 to achieve its broadband aims, completely overshadowing the UK's plans and threatening to leave us struggling behind our European competitors.

The French programme will be funded by a tax on fixed and mobile phone connections, which goes beyond the previous UK government's proposal for a tax on fixed line connections. At the time of the proposal, the CWU campaigned hard for the tax to also cover mobile phone connections, but the proposal was withdrawn completely by the then government to secure key legislation in the wash up stage before the 2010 general election.

A universal high speed broadband network is going to be vital to support the UK's fragile economic recovery and create much needed jobs and growth. It is also essential to enabling every UK citizen to participate fully in the digital economy and society, providing access to government online services including health and education, as well as benefiting from cheaper goods and bill paying.

A recent report by the Boston Consulting Group for internet search engine Google puts the value of the internet to the UK economy at £100bn and says that it is growing at 10 per cent a year. But it warns of a digital divide that will see many rural parts of the UK, including much of Scotland, Wales and Northern Ireland, losing out on jobs, business and revenue unless the government supports investment in high speed broadband networks to those areas.

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