Richard Younger-Ross (Teignbridge, Liberal Democrat)

To ask the Minister of State, Department for Business, Innovation and Skills what estimate he has made of the cost of delivery of next generation broadband to at least 90 per cent. of homes and businesses by 2017; what proportion of that cost will be funded from the public purse; and what arrangements he plans to make for such funding.

Stephen Timms (Financial Secretary, HM Treasury; East Ham, Labour)

The Broadband Stakeholder Group published a report in September 2008 on the cost of delivering next generation broadband nationwide. This put the cost of UK-wide fibre networks at between £5.1 billion and 28.8 billion depending on the technology used.

The Digital Britain Report indicated that around 60 per cent. of homes are likely to be served by next generation broadband purely through market provision. The Government have proposed a supplement of 50p per month on each fixed copper line in order to raise £150 million-£175 million a year. This will provide a fund earmarked for supporting delivery of next generation broadband to at least 90 per cent. of homes and businesses by 2017. The exact proportion of public and private investment in relation to those areas not served on a purely commercial basis by the market will be determined by a competitive process. We will bring forward for Parliament's approval legislation to deliver this fund in Spring 2010.