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Digital Britain - Who's Paying for it?

19/06/2009

It’s here at last – the 245-page report setting out the Government’s vision for the communications industry in the 21st century. Fundamentally it deals with providing broadband for all – bridging the digital divide – and securing the future of public service broadcasting in this country.

The proposals on broadband seem fair enough. People need access to it for all kinds of reasons these days and it seems unfair to prejudice people because of their postcode. Even though the speeds being discussed are hardly likely to send most consumers rushing to watch on-line television channels.

But I can’t say the same for the rest. Having spent several years working at the BBC I’d be the first to make my many moans and complaints heard. But I’d also be quick to recognise that the BBC is a world-renowned centre for excellence. I’ve worked in a multitude of different markets and nowhere have I found a craft base to compare with the Beeb.

And surprisingly I also think it provides excellent value for money. Now, granted, if we were starting from here we probably wouldn’t re-invent a tax funded monolith like the BBC. But we aren’t starting from here and I think tinkering with it now will set a dangerous precedent for years to come.

But that’s not my main gripe with ‘Digital Britain’. What bothers me is the unimaginative approach to the current funding crisis. Instead of looking creatively at future models all we’re really doing is looking backwards at a tax/revenue model. And this I think has two main consequences. It creates a dependency model for news providers. If there’s 130 million pounds worth of BBC revenue up for grabs that beats having to work it out for yourself.

And critically because they’re not paying directly for the services provided it also takes consumer choice out of the equation. Instead of the Government paying for a service regardless of need shouldn’t we be looking at demand driven models. Surely one thing we know about the digital age is that a proliferation of channels doesn’t necessarily mean more choice.

So two cheers for the report in terms of infrastructure – or as the Lord Carter would say the ‘pipes’. But I would have loved to see some more creative commercial thinking with regard to news provision. Mind you I suspect we’re going to see many months of ‘consultation’ before any of this truly sees the light of day.

 

Stephen Horn

CEO, WebsEdge





  


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