Information society : agenda for action in the UK : evidence received after 31 March 1996 / Select Committee on Science and Technology.
- Great Britain. Parliament. House of Lords. Science and Technology Committee.
- Date:
- 1996
Licence: Open Government Licence
Credit: Information society : agenda for action in the UK : evidence received after 31 March 1996 / Select Committee on Science and Technology. Source: Wellcome Collection.
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![23 April 1996] [ Continued Other commonly-owned Networks: Internet is probably the closest current contender for the information superhighway, although it lacks the capacity to satisfy the growing demand for interactive multimedia applications. In essence, it is a packet switched network, using routers (data switches) rather than standard circuit switches. In general, local access to the Internet is provided by PTOs using data modems operating over standard copper pairs, and connected into routers via standard telephone exchanges. Currently services provided over the Internet are lightly regulated, as data, rather than as telephony services, although Internet telephony is now possible. CURRENT REGULATION IN THE UK The aims of the regulatory framework in the UK are to encourage competition, promote new entrants to the market, reduce prices and encourage improvements in efficiency. This framework applies primarily to BT and focuses largely on telephony services although Oftel is now turning its attention to the needs of service providers more generally. Price control, and the debate on its continuation, contributes to the depressed shareholder value of the whole UK telecommunications sector. Control of BT’s prices effectively constrains prices in the whole market. This risks discouraging investment in the UK by all the leading players. Market entry assistance for other companies has restricted BT’s ability to use new technologies, such as radio tails, and to offer new services such as broadcast TV. These restrictions continue despite the growing maturity of the market. They are holding back the growth of the multimedia service sector, as this will only flourish when a new superhighway is available across the UK. In our opinion BT is one of the few companies able to provide such an infrastructure once regulatory, technical and economic conditions allow. BT has offered to provide free broadband connections to schools and similar institutions, in the context of a general and commercially justified programme to build a broadband network, on the assumption that BT was allowed to provide broadcast entertainment services. DEVELOPMENTS BY BT Developments are being made by BT on all fronts. BT already uses ISDN as an interim medium band connection and is trialling technologies such as Asymmetric Digital Subscriber Loop (ADSL) which delivers bandwidths of 2 Mbits/s and more over copper pairs, allowing distribution of video signals to the home. BT now offers connection to the Internet. The number of Internet users is growing at a rate of 10 per cent per month, to the point where performance is becoming an important issue. The advent of full broadband applications and the expanding number of connections may require the adoption of new packet or cell switching technologies, currently being investigated by BT. Moreover, BT is now developing a potential superhighway based on hybrid fibre/copper technologies. The scope for this was not envisaged as recently as two years ago. Optical fibre would be taken to within a few hundred metres of the home, where electronic equipment would be used to provide a very high bandwidth connection over an existing copper pair. By re-using existing cable, this technology would be a very cost effective solution, as well as minimising disruption to streets and highways. BT believes the new broadband switching technologies together with hybrid fibre/copper access connections could form the basis of a low-cost information superhighway available across most of the UK. This would require an investment of several billion pounds funded by borrowings and profits, and would have to be commercially justified. The exact form of the network is still uncertain in view of rapid developments that are taking place. The final outcome will be shaped by commercial issues such as customer requirements and technological change. WORLDWIDE DEVELOPMENTS The main aims of the many service development initiatives across the globe are to improve business efficiency, international competitiveness and the quality of social services (eg to the disabled community). A recent G7 Ministerial Conference proposed a new “Global Interoperability for Broadband Networks” (GIBN) initiative to promote pre-commercial trials of broadband services and applications. The initiative will establish international links between North America, Europe and Japan to encourage the development of new services, and co-operation and interoperability on a global scale. Within North America, the’USA is beginning to pull ahead of the UK in terms of its commitment to the superhighway. The Clinton administration has made the Information Superhighway a high profile issue, backed up with positive action. A recent landmark Act has removed regulatory barriers between telephone, cable and broadcast industries. Many of the US Regional Holding Companies such as NYNEX and Bell](https://iiif.wellcomecollection.org/image/b32218631_0048.jp2/full/800%2C/0/default.jpg)
