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The success of broadband in the UK - easy definition, hard decision

What's a country to do?

By editorial@silicon.com

Published: 11 October 2002 16:45 GMT

Can the UK emulate the broadband success of South Korea? Perhaps some clarification of what success means is necessary.

Korea boasts more nine million households - more than two thirds - with either ADSL or cable modem broadband connections - it's mostly seen as a consumer access technology, most businesses using leased lines - and the country is heralded as a world leader.

It's been in the news again this week because Brunel University and the Department of Trade and Industry (DTI) led a mission to the country to find out what its magic formula is.

It turns out a mixture of determined and well-funded government support, communication of clear user benefits, a culture of game playing and simple demographics have made the Korean market what it is. The fact-finding mission was impressive in its thoroughness and the insight and enthusiasm of those reporting back. However, serious questions remain.

Asked whether broadband in Korea has been a success - as opposed to merely widely used - and the taskforce members and most other pundits will say 'yes'. Yet the main service providers involved - telco KT and various others - haven't seen a return on investment. They may yet, as people pay for more online services, and the government keeps its spending promises.

(As an example, even with everything that it's done already, the government still has around £600m set aside to subsidise rural roll out.)

But can we imagine governments in the West being so supportive? In most countries, success isn't measured in terms of total benefit to society - though societal benefits may be a result - but primarily in terms of whether providers can turn a profit. BT, for one, will have read yesterday's report with a wry smile. It, and its supporters, have emphasised time and again that its responsibility is to make money for its shareholders, plain and simple.

Which means the whole broadband debate may well come down to a simple choice. Do we want our government to prop up what will in many ways be a loss-making industry so countless businesses at the edges of broadband and users - consumer and corporate - will benefit? Or must the broadband industry prove itself before we begin to get near the take up rates of Korea, Taiwan (in a close second place), the US or most other developed economies?

We think the latter path the likely one. We advocate the former.

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