Superfast broadband cannot be left to market alone - Alexander

12.00.00am GMT Tue 23rd Feb 2010

Local MP Danny Alexander has criticised today's BIS Select Committee report on broadband which argues that the focus should be on providing basic broadband for all and allowing markets to deliver higher speed broadband - rather than putting a funding mechanism in place to support superfast broadband roll-out in rural areas.

Mr Alexander, Lib Dem MP for Inverness, Nairn, Badenoch and Strathspey, said:

"Whatever the committee's criticisms of the proposed 50p levy for funding superfast broadband, it is simply wrong to say we can just leave this to the market. It would be a huge step backwards to abandon the principle that there should be central funding for the timely roll-out of high speed broadband to areas - such as much of the Highlands - that the market won't reach.

"Without such help urban centres will thrive on the benefits of superfast broadband in the home and at the office while remote and rural areas will fall further behind. All the evidence shows that the market will fail in much of the Highlands and comparable speeds will be many years late, if they arrive at all. In economic competition 'better late than never' simply does not apply.

"In areas like the Highlands going beyond the 2mb commitment will have a huge impact - it offers the opportunity for many new businesses to be established in rural communities. I have been working with local stakeholders like the council and HIE to make sure there is a fully worked out plan for rolling out this new technology in our area. There is huge demand and appreciation of the economic development that can be harnessed.

"In broadband role out and speeds we are already falling behind much of the developed world and will continue to do so unless Government takes a lead."

ENDS