No immediate relief from upgrading broadband networks

Following reports from politicians that upgrading broadband networks in the UK could bring economic benefits, one industry expert has stated that he remains unconvinced.

Recently the Prime Minister, Gordon Brown, told the Observer newspaper that he thought that upgrading the UK’s broadband networks and getting fibre optic networks in place to increase broadband speeds could offer a range of economic benefits, and could play a big part in helping the country to recover from the ongoing recession.

Whilst the Prime Minister and the leader of the Conservative Party, David Cameron, fail to agree on many issues, this is one issue with which the opposition party leader also agreed, also claiming that the availability of super fast broadband through fibre optic networks could help to increase jobs and help the economy to recover.

However, one industry expert has said that he is not so sure that the economy will benefit from immediate relief as a result of upgrading broadband networks, adding that the only shorter term creation of jobs would be for those involved in installing the networks and parts of the manufacturing industry.

The expert, Peter Clarke from the company Ovum, did add, however: “In the long run a new fibre network to the home or small office will help encourage flexible working from home, if employers are willing to support it. It could also help stimulate new ‘home-based’ small companies.”

In the meantime, technology giant IBM has been trying to convince President-elect, Barack Obama, that the same concept could work over in the United States, and that improving broadband networks could help to boost the country’s economy.