This includes GBP 740 million provided through the new National Productivity Investment Fund, a GBP 23 billion fund set up to invest in infrastructure, housing and R&D.
As earlier reported in the press, the government will set up a new Digital Infrastructure Investment Fund, with GBP 400 million in funding that is expected to be at least matched by private finance, to invest in new fibre networks over the next four years. This will help "boost market ambitions to deploy full-fibre access to millions more premises by 2020", the statement said.
In addition, the government has promised to waive business rates for full-fibre infrastructure for five years from 1 April 2017, in order to support roll out to more homes and businesses. This appears to answer a call from Virgin Media's CEO Tom Mockridge, who published an op-ed piece in the Financial Times the same day of the autumn statement.
He said one of the major barriers to companies like Virgin Media, which has pledged to roll out fibre to 4 million more homes and businesses, is the red tape for gaining access to local civil infrastructure. In addition telecom operators pay much more than other utility companies to acquire 'wayleaves' from local councils, he said.
The rest of the government support will go to funding local investment in a "much bigger fibre ‘spine’ across the UK", with the priority on fibre connections for businesses and public sector institutions. The government will work in partnership with local areas to deliver this, and a call for evidence on delivery approaches will be published shortly after the autumn statement, it said.
It also plans to release a 5G plan next spring with the 2017 state budget. This will outline more funding for a coordinated programme of integrated fibre and 5G trials, "to keep the UK at the forefront of the global 5G revolution".
The new wave of investment comes as the UK nears completion of the Broadband Delivery UK programme. Started in 2013, the state funding has gone to local councils and operators to support upgrading existing broadband connections to over 24 Mbps. BT has been the main beneficiary and focused on rolling out FTTC.
The government said recently that 91 percent of homes and businesses in the UK can now receive at least 24 Mbps. Phase Two of the BDUK scheme aims to take this to 95 percent by 2017/18 and to 97-98 percent by 2019. It is still looking at options for covering the hardest to reach parts of the UK.
