- Guardian: Free [communist] broadband essential to make UK competitive, says John McDonnell Archived Message
Posted by Sinister Burt
on November 15, 2019, 1:41 pm
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Sounds good to me 20 quid a month (or whatever it is) i could do with having back - that tories have to go with 'communist broadband' suggets their on the back foot a bit. Whether this cuts through the brexit culture war bollox is another question though. https://www.dumptheguardian.com/technology/2019/nov/15/free-broadband-essential-uk-compete-john-mcdonnell-labour-policy-openreach "John McDonnell has launched a staunch defence of Labour’s ambitious plan to provide free broadband across the UK, amid claims that it is unrealistic and has already had an adverse effect upon the market. The shadow chancellor said on Friday the scheme, hailed “British Broadband”, is essential to allow the UK to compete in the global economy, and follows years of failed attempts by successive Conservative-led governments to encourage private providers to expand the network nationwide. Critics have pointed out that BT shares have dropped by nearly 4% after the announcement on Thursday night. On Friday, TalkTalk said it had put the sale of its full-fibre broadband business, FibreNation, on hold as it considered the implications of Labour’s proposals. In an interview on BBC Radio 4’s Today programme, McDonnell said the plan to take over BT’s Openreach was “very much following the model of what has happened elsewhere”. “Yes, it is ambitious, but we have to be ambitious if we’re going to compete in the global economy. And it doesn’t just have economic benefits. It has environmental benefits in terms of basically people locating in their local towns and not commuting, some people moving into rural and coastal areas as well so they’re properly connected, and it has social implications as well,” he said. The proposals, if implemented by a Labour government, would be a radical shift in provision of broadband services, which are provided by companies at an average cost for each household of about £30 a month. It builds on the party’s proposals to nationalise the energy utilities, water companies, postal services and railways as part of its plan for a transformation of the public sector. “We’re not taking over all of BT, we’re simply taking over Openreach, the BT technology and some elements from within BT itself. And the reason we’re doing it is because the private sector have not delivered on the scale that we need fast enough, and I think now it is about building for the future,” McDonnell said. Labour said the estimated capital cost of rolling out full-fibre broadband was £15bn, on top of the government’s existing £5bn put aside for expansion. This would be funded from a green transformation fund. Openreach, the broadband network that is a distinct company within the BT group, is worth about £12bn to £15bn but the party said parliament would decide the rate of compensation. Labour has said it would issue government bonds to shareholders for all nationalisations. McDonnell said he hoped to come to an agreement with rival broadband companies such as Sky and TalkTalk over access, and if necessary they could “come within the ambit of British Broadband”. “We’ll come to an agreement with them, either an agreement of access arrangements or working alongside us, or, yes, if necessary they can then come within the ambit of British Broadband itself.” Pushed on whether this meant Labour would take over these companies, McDonnell said: “I think we can come to an agreement – they’re only 10% of the network and that’s why we’re doing this, because they’ve failed. “I’m sure that we’ll be able to ensure that we can come to an agreement, and, yes, if necessary there will be elements of compensation.” Asked whether Labour’s British Broadband would pay its staff at the same rate as BT, the shadow chancellor said the body would have to be “competitive to attract the talent that we need in the normal way”. He added: “We will always ensure that we attract the talent that we need.” On Labour’s intention to tax big technology companies to fund the policy, McDonnell said: “We’re not being unfair to anyone, we’re simply saying you make your profits here, on the percentage of the profits you make here, you pay your taxes properly.” TalkTalk’s half-year results were delayed on Tuesday as it was close to completing a deal for FibreNation, but the sale was paused on Friday after Labour’s announcement. “Not surprisingly, when news of that sort lands, everybody’s reviewing, pausing for breath, and considering what that means, and that’s what happened here,” TalkTalk’s chief executive, Tristia Harrison, told the Press Association news agency. “We are in extremely advanced discussions and negotiations,” she added. “We’re just pausing and reconsidering.” BT’s chief executive, Philip Jansen, told the BBC Labour’s plans were “very, very ambitious ideas” and challenged the party’s figures. “It needs funding, it is very big numbers, so we are talking £30bn-£40bn … and if you are giving it away over an eight-year timeframe it is a another £30bn or £40bn. You are not short of £100bn,” he said." |