Hopes of Britain being rebooted by the digital economy

In the midst of the current financial crisis many ministers are hoping that the £25bn communications industry will play a central role in the “rebooting” of the economy.

With the creation of the new role of communications minister, the former regulator, Lord Carter is preparing a report that will lay out new measures that will allow the technology, media and telecoms sectors to be strengthened.

In recent comments Lord Carter said that the business secretary, Lord Mandelson who is now his ministerial boss was “absolutely convinced the digital economy can be a key part of a rebooting of the economy”.

January should see Lord Carter releasing an interim report on how the communication industry can be bolstered, although he is looking more at legislation that could be achieved through pursuing longer-term work.

The more sensitive areas like how superfast broadband networks and public-service broadcasting will be funded will be address by the former CEO of Ofcom, the telecom and media regular. With regards to these issues, however, he said it was too early to offer a view.

As an explanation of the reason for the work he is currently involved in, Lord Carter said “The economy is going through turbulent times and particular sectors . . . not least the financial services sector, are going through particularly turbulent times. And therefore, let’s look at other sectors . . . technology, media, telecoms is a critical growth sector . . . something we are extremely good at, quite well positioned in and could be even better positioned.”

Previously working as strategy director for Gordon Brown, Lord Carter has been moved during the recent cabinet reshuffle to his new position. The equipping of Britain with a broadband network running at superfast speeds and initial costing as high as £29bn is one of the things he will be looking into in his new position.

Damage to competitiveness within the UK if there is no progress made in the implementation of a superfast broadband network is the government’s main concern at the moment.