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Labour pledges free broadband for all homes and firms in UK

theguardian.com

41–50 of 72 posts

Re: Labour pledges free broadband for all homes and firms in UK

#41
post #17

Well BT is available in all areas in the UK except for Kingston-Upon-Hull which has it's own broadband provider called KCOM which is enjoys a complete monopoly in the area with the city having fibre-optic in all areas. I wonder if this policy that given that it creates free-access to the internet but in the end it also creates a huge monopoly similar to KCOM that kills competition with the added bonus of only the big…

"astronomical cost of this on the tax-payer" is absurd. Who's having costs go up significantly as a result of free internet service being provided? You already have to pay for internet from a private provider, if you replace that with government-operated internet your internet is funded by taxes - but the government can tax corporations instead of individuals to avoid raising direct costs for any individual taxpayer, which they're doing!

Re: Labour pledges free broadband for all homes and firms in UK

#42
So a few things to note on this:

This isn't an entirely new idea. BT was privatised in the 1980s, and before that had been run as a government department, and later as part of the Post Office, a public company but still under the control of the Government. At that early stage, the UK had some of the best internet infrastructure in the world, and had plans to roll out FTTH. Then Thatcher became PM, privatised BT, cancelled the fibre rollout plans, and encouraged more competition in the hopes that would improve investment. Well, 30 years later and we still have https://www.techradar.com/uk/news/world-of-tech/how-the-uk-l...)

Internet infrastructure is in weird state here. Thanks to BT's legacy as a public/nationalised company, they still own the vast majority of infrastructure and cables. This was sort of spun out into a separate company (Openreach) to BT the ISP, but they are widely considered inefficient and disinterested in improving the infrastructure, and they're still a subsidiary of BT. In theory this move was to increase competition, but it hasn't done a lot. There's only one major ISP (Virgin) that truly competes with BT, built their own infrastructure, and ran their own cables, almost every other ISP just leases the lines from Openreach and sells their own services on top of that.

I tend to agree that nationalising Openreach (the infrastructure and cables) is a good idea, to increase internet speeds and coverage across the country - rural areas tend to have very slow speeds as it's not in the interests of BT and Virgin to improve the infrastructure for a handful of customers in that area. I'm not so convinced that providing free high speed fibre internet connections to everyone is a necessity or a good use of government money. I feel like nationalising Openreach but keeping the existing model of ISPs building services on top of the infrastructure makes sense, and public infrastructure would reducing the costs of leasing those lines, a saving that could hopefully be passed on to customers. I'm not sure how this would affect companies like Virgin who do own their own infrastructure though, would they then be competing with the government?

There's of course a privacy concern to the government owning the internet infrastructure too. While the UK government has already had some pretty draconian policies, and they can force ISPs to comply, they've struggled to implement some of their more "ambitious" censorship policies, in part due to it being difficult to get all of the ISPs to come to an agreement on how to implement them. If the government owns the infrastructure, it's easier for them to implement surveillance and censorship at a lower level, harder to circumvent with VPNs and the like. Internet surveillance and censorship are generally policies of the Conservative party, rather than the Labour party who are proposing this, so I don't think there's any malicious intent with this proposal, but if a left wing government nationalises the internet this year, what's to stop a right wing government of the future using this new found control to implement stronger surveillance/censorship in 5 years?

All in all, I'm on the fence about this policy, although I do think some steps in this direction would be positive. And if you've been paying any attention to British politics in the last few years, you'd know there's even more complexities that what I mentioned here.

Re: Labour pledges free broadband for all homes and firms in UK

#43

Earlier quoted context omitted.

Rich peoples pockets (the few)?

A finite resource (not even a resource!) that people will wonder where they went after everything falls apart.

Presumably that money goes back into the pockets of everyday people who then spend it in an ever revolving churn of money which keeps capitalism working.

If your economy is held up by rich people and rich people alone, your economy probably sucks.

Re: Labour pledges free broadband for all homes and firms in UK

#44
post #17

Well BT is available in all areas in the UK except for Kingston-Upon-Hull which has it's own broadband provider called KCOM which is enjoys a complete monopoly in the area with the city having fibre-optic in all areas. I wonder if this policy that given that it creates free-access to the internet but in the end it also creates a huge monopoly similar to KCOM that kills competition with the added bonus of only the big…

Thing is, wires are a natural monopoly. In fact, all the wires in the UK are owned by BTOpenReach which is a highly regulated and audited government sanctioned monopoly. I bet if you looked at the current costs of auditing and regulating it, a nationalised BTOpenreach would not cost a huge amount more to run.

Some of your broadband bill is going straight through your ISP to BTOpenreach. A bit goes to a billing provider; the ISPs all probably license the same back end software. The rest is spent by the ISP on marketing, graphic design and cold calling, all to try and differentiate something that you can't differentiate because pretty much everywhere its the same wires.

You bring up KCOM in Hull. Before it was privatised (the council built a new stadium for the local football team with the profits) this was a state run municipal broadband system that was light years ahead of anything else in the UK and provided either free or ultra cheap when it was introduced, if anything it was too ahead of its time, people didn't know what to do with it.

I don't know how much it would cost to maintain the wires if we strip out all the admin expenses of marketing, contracting and billing everyone, but I would not be surprised if it was less than £10/house per month. Whether I pay that to a nationalised service or through my tax I don't care, but I don't think it should be dismissed as it would make the UK more competitive against other countries. Think of all the time wasted with every household in the UK having to phone their ISP every year and negotiate a better deal for what is essentially the same thing.

Look at the UK railway system as another example of a natural monopoly and compare it to France where it is state run. UK is twice the price, half the speed, half the legroom, shit wifi and nasty food. Surely the market is not set up right here as it it not optimising for a great outcome compared to a centrally controlled system like SNCF.

Markets are a tool and should be modelled before they are applied to see if they provide a more efficient outcome. It is not a given that they will do so, especially where they are artificially created by ideologue politics.

Re: Labour pledges free broadband for all homes and firms in UK

#45

Earlier quoted context omitted.

Rich peoples pockets (the few)?

A finite resource (not even a resource!) that people will wonder where they went after everything falls apart.

What exactly makes 'rich people's money' a finite resource? Where do you think their money comes from? If you look at the average billionaire, their wealth trends up even if they're giving big chunks of it away - Bill Gates is richer now than he was when he started giving away huge piles of his money, because for a rich person wealth is (unless you're literally lighting it on fire) not trivially exhaustible.

Many countries previously have had high tax rates on the rich (upwards of 50%) and those rich people still managed to avoid being poor.

It would be another matter if their plan was proposing to cut off rich people's income - but their plan doesn't even touch rich people, it is funded by corporations. Even if you were to institute a 2% wealth tax to fund public internet, the rich would still stay very, very rich because it's possible to keep earning money off your remaining wealth through investments and other means.

Re: Labour pledges free broadband for all homes and firms in UK

#46

"free" okay but where does the money come from?

>BT would be part nationalised under £20bn scheme funded by new tax on tech companies

I would suggest reading the article, even the subheadline right where your eyes first focus had you even opened the link.

Re: Labour pledges free broadband for all homes and firms in UK

#47

The history of Internet provision "for all" in the UK is atrocious. Massive government handouts followed by private companies that had lobbied for them failing to meet their promises is a summary. I can't see a nationalisation resolving the issues though, especially not with the paltry numbers being bandied around. I could see better regulation and forced separation of concerns achieving a lot however. That said, Int…

> Massive government handouts followed by private companies that had lobbied for them failing to meet their promises is a summary.

That's basically it. OpenReach is the Network Rail of ADSL. Often Openreach would take millions of subsidy for rural broadband buildouts and then do .. nothing.

While I think nationalisation may be a step too far, I think it's useful to move the conversation away from endless privatised failure. If nothing else has worked, let's try threatening Openreach until service improves.

Re: Labour pledges free broadband for all homes and firms in UK

#48
post #17

Well BT is available in all areas in the UK except for Kingston-Upon-Hull which has it's own broadband provider called KCOM which is enjoys a complete monopoly in the area with the city having fibre-optic in all areas. I wonder if this policy that given that it creates free-access to the internet but in the end it also creates a huge monopoly similar to KCOM that kills competition with the added bonus of only the big…

"astronomical cost of this on the tax-payer" is absurd. Who's having costs go up significantly as a result of free internet service being provided? You already have to pay for internet from a private provider, if you replace that with government-operated internet your internet is funded by taxes - but the government can tax corporations instead of individuals to avoid raising direct costs for any individual taxpayer,…

Everyone's costs are going to go up significantly as a result of replacing broadband that mostly uses existing infrastructure with a program of ripping up every street in the country and installing new fibre optic connections to every house. Making it "free" and taxpayer-funded just means that there's no way to opt out of paying if the existing broadband is fast enough.

Re: Labour pledges free broadband for all homes and firms in UK

#49
post #13
post #4

Earlier quoted context omitted.

And it would lead to everybody having the fastest fibre for free. What is wrong with bankrupting companies that aren't needed anymore?

> the fastest fibre Hard to argue with that conclusion when there's only one option.

You skipped a few steps. If it's not the fastest, then other companies wouldn't go bankrupt, since they're offering something better.

I.e. it would be the only option only if other companies bring nothing better to the table.

Re: Labour pledges free broadband for all homes and firms in UK

#50
post #5
post #4

Earlier quoted context omitted.

And it would lead to everybody having the fastest fibre for free. What is wrong with bankrupting companies that aren't needed anymore?

At a guess, I would hazard the thousands of people who would become unemployed? And not all be able to immediately go and work for the 'British Broadband Corporation'? That's one negative side effect.

By that logic, we should ban the internet altogether, and thus create more jobs for postal workers.
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