Richard Branson has hit the headlines again with news that Virgin Media expects to deliver mobile broadband with a speed of 200MB by 2012. The plan has taken some of the gloss off its recent announcement of a fibre optic network which would service 10 million homes by 2012, offering internet broadband speeds of 100MB.
While the roll out of the 200MB broadband service will be gradual it looks as though stage one will happen over the next 12 months with plans for a 50MB offering. Even though the UK economy is struggling at the moment the need for faster broadband has never been more vital with UK businesses striving to stay ahead of the competition. The increase to the 200MB broadband service will be gradual as and when demand and client numbers make it economical but it seems as though infrastructure plans are already in place.
Many had expected BT to take the lead in the UK broadband market over the next few years but it seems as though others in the sector have there own plans. The Virgin Media news comes at a time when Sky has also been rumoured to be testing a new 50MB broadband service. On the regulatory side OFCOM seem to be warming to the idea of allowing BT to increase broadband wholesale prices to raise funds to reinvest into the proposed fibre optic network.
The UK broadband scene is on the verge of a move to the next level but it is a difficult balancing act between raising investment funds and ensuring that there is a ready made market there to fund the move.