Reply to post: If it's free, enjoy your tiny bandwidth allowance

Labour: Free British broadband for country if we win general election

sbt Silver badge
FAIL

If it's free, enjoy your tiny bandwidth allowance

There's no way the economics of this investment work if you run it at a loss, let alone writing off the capital cost. Australia's NBN had to be heavily scaled back from full FTTH just to make it possible for twice the cost estimated. At least they stuck to the wholesale natural monopoly element.

I doubt they could do the whole of the UK for £15 billion. Taxes will have to rise to pay for it long term, or other services will be cut. I guess that is consistent with a "tax and spend" philosophy some left-of-centre parties espouse.

Given the levels of trust and competence in the public sector right now, is bigger government the right direction, or is re-building the competency in more reasonable, targetted and essential areas the way to go?

Also, where does free broadband leave any other business that's invested in this space, like mobile phone operators?

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

SUBSCRIBE TO OUR WEEKLY TECH NEWSLETTER

Biting the hand that feeds IT © 1998–2020