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Making Universal Service Pay
Ever since Rowland Hill introduced the Uniform Penny Post there has been the idea that communications services should be available to all.
With advancing technology the scope of what services should be universally available has grown and obligations defined in telephone operator’s licenses. A basic fixed telephone line is available to (almost) all at a geographically averaged price and since 2003 those lines have had to be capable of supporting internet access at speeds of up to 28.8kbit/s!
Of course the technology has moved ahead much faster than legislation and broadband internet access is now available to the vast majority of UK homes with 85% capable of receiving 2Mbit/s.
Access to high speed internet has also become both a social and economic necessity for many. Martha Lane Fox, the government’s digital champion reckons that households not connected to the internet are missing out on average savings of £560 a year from shopping and bill-paying online. Ofcom research on the impact of the recession earlier in the year showed that while 47% of people would cut back on eating out and 41% on holiday, only 10% would cut back on their broadband subscription.
While the idea of universal service is attractive, the question remains of how to fund un-economic services. Digital Britain’s proposed tax of £6 a year on fixed lines is supposed to help fund further roll-out of broadband networks.
Swindon is now pioneering a new development with universal access to wi-fi internet. It has announced the roll-out of it new Signal service with a basic free service across the entire town by April next year. While other local authorities have developed pockets of free wi-fi internet access, no-one else has been as ambitious in terms of the scale.
Most interesting is its business model. A new public / private commercial venture (with Swindon Borough Council owning 35%) will provide the free service. It will cover its costs with additional paid-for consumer services (such as higher speed access and remote CCTV monitoring) and using the infrastructure to support a range of public services, e.g. telemedicine. Swindon even hopes to make money by extending this service to other boroughs.
Has Swindon found a way of making universal service pay for itself and will this provide a model for free wi-fi internet access for all?
Photo Courtesy of CarbonNYC
