Academics warn of £1 billion broadband shortfall

Academics at the London School of Economics (LSE) have warned of a billion-pound shortfall in funding for superfast broadband if the government is to meet its aim of providing the “best” Internet infrastructure in Europe.

The LSE’s department of media and communications found that funding for broadband from public sources, including the government’s £150 million pledge to help create 20 “super-connected cities”, totaled £1.3 billion, in a report commissioned by Convergys, a customer-management software provider. That left a £1.1bn funding gap to be filled by the private sector, the LSE said, which risked Britain lagging behind other countries and missing the economic benefits. A 10 percent increase in broadband penetration leads to an increase of 0.9-1.5 percent in gross domestic product a head, the report said, citing University of Munich research.