Private sector unwilling to invest in shaky broadband market

Private companies in the UK may be unwilling to invest in super-fast broadband because of the current unpredictable nature of the market, according to Ernst & Young.

The firm noted that the economics of broadband is presently “fragile at best”, so private investors won’t be able to make a case for moving forward to next generation broadband as the market stands.

Speaking at the Westminster eForum keynote seminar: Next Generation Broadband, Mark Gregory, head of communications at Ernst & Young, said however, that the issue of demand for next generation broadband “does need articulating better”.

He added that if it is going to be implemented, there are “some real risks out there” for anyone who wants to make that happen.

According to the findings of a recent report published by Ofcom, broadband has been one of the most significant developments in communications technologies in recent years, with take-up reaching 58 per cent of homes in less than eight years.