The UK government has announced plans to legislate to ensure that all new-build homes come with gigabit-speed broadband connectivity. This fits with the government's strategy to level up the UK and accelerate deployment of gigabit broadband infrastructure.
The move will legally require developers to install high-quality digital infrastructure from the start and make it a priority as part of the build. Building legislation will be amended to guarantee that all news homes have the infrastructure to support gigabit broadband, with developers having to work with network operators to install speeds of over 1 Gbps in new-build homes, up to a cost cap of GBP 2,000 per home.
To ensure that developers are incentivised to follow the plans, the government has secured commitments from operators to contribute to the cost of installing gigabit broadband in new-build homes. Virgin Media has agreed to contribute at least GBP 500, and up to GBP 1,000 for some larger sites. Openreach has committed to a combined contribution with developers of GBP 3,400, with maximum housing developer contribution of GBP 2,000. Commitments from other operators are expected in the coming weeks.
According to government estimates, 215,000 new-build homes are built each year It expects that gigabit broadband will be installed at no costs to developers 98.1 percent of the time, and that developers will have to contribute more than GBP 1,800 in only 0.1 percent of new builds. This policy will ensure that gigabit-capable connections will be deployed in 99 percent of total new build premises.
