The government reportedly plans to offer satellite broadband vouchers to homes and businesses in rural areas not deemed economically viable for fibre deployment and not included in government-funded projects like Broadband Delivery UK (BDUK).
First reported by The Telegraph, and confirmed to TechWeekEurope by the Department for Culture, Media and Sport (DCMS), two pilots will be held in Suffolk and West Yorkshire with the intention of expanding the initiative across the UK.
The vouchers will meet the cost of a satellite dish and modem installation, but not the monthly cost, which it is believed will be around £25 a month. The plans were first mentioned in the Conservative’s manifesto for the General Election earlier this year, but no mention was made in the summer budget.
Four providers will apparently participate in the trial as the government attempts to meet its target of ensuring the entire country has access to speeds of at least 2Mbps by the end of the year. It is said at least one provider will offer a superfast 30Mbps service.
However some analysts suggest broadband users need at least 10Mbps to make the most of the Internet, while Ofcom has suggested increasing the ‘universal service obligation’ to that speed. Even the previous coalition government’s budget in March suggested 5Mbps would become the new standard.
Existing broadband projects like BDUK and the Super Connected City voucher scheme, which provides grants of up to £3,000 to small businesses to upgrade their connectivity, have so far connected more than three million premises.
BDUK is confident of reaching its target of covering 95 percent of the UK with superfast broadband by 2017, but this still leaves around 1.5 million homes and businesses excluded, leading to fears of the emergence of a “digital divide” between urban and rural areas.
“Alternative” technologies such as LTE and satellite have long been touted as a cost-effective way of reaching the ‘final five’ percent, with Ofcom holding trials in a number of areas.
In February, BDUK CEO Chris Townsend said he would be petitioning the government for more funding to connect rural areas to satellite as part of ‘phase 3’ of the project.
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If enough people in an area clubbed together with their vouchers they could put real fibre in. Satellites are only a stop gap solution at best. This is a waste of funding. We need fibre. Moral and Optic.