Government will miss broadband target

People in rural parts of Britain will have to wait an extra two years before they get superfast broadband as the government admitted it will miss its target for rolling it out by 2015.

Chief executive to the Treasury Danny Alexander made the announcement when he outlined how the budget for infrastructure would be spent.

This could slow down enterprises' plans of adopting flexible working policies or employing remote workers as they rely on broadband to use products such as unified communications and video conferencing.

On the other hand, Mr Alexander did promise that 1.4 million more homes would receive superfast broadband by 2017 as his new target is to have the service introduced into 95 per cent of homes. By 2018 he wants to have 99 per cent of homes connected to superfast broadband.

Additionally, the amount of money being invested in the project has had an extra £250 million pumped into it.

In his pre-election pledge before the House of Commons, Mr Alexander explained: "We are shifting the government's policy horizon to match the modern economy's horizon ... we are putting long term priorities before short term political pressures."

He added that getting the fastest broadband supplied to more than just the UK's biggest cities is important for rebalancing the economy.

While he pushed the UK's quality of "broadband coverage, usage and choice", which he claims is better than that of France, Germany, Italy and Spain.

Indeed, European countries have been facing their own difficulties in relation to broadband services. A new report from the European Commission has revealed that customers get a broadband speed that is, on average, 25 per cent slower than that which was promised to them. The average speed of broadband in Europe is 19.7mbps.

Yet this is an area that the EU will be focusing on as it plans to have all households receiving a speed of 30mbps and at least half of them to gain 100mbps by the end of 2013.