Byline: Sean Poulter Consumer Affairs Editor
A SUPERFAST broadband system that will transform home and working lives was given the green light yesterday.
Download speeds across a new [pounds sterling]1.5billion fibre optic cable network will be more than 25 times faster than the current service most people get.
The delivery of superfast broadband has been described by the telecoms regulator Ofcom as the biggest step forward in communication since Alexander Graham Bell made the first telephone call in 1876.
In future, a broadband speed of 100megabits per second will allow downloads of songs in just under a second and DVD quality films in less than two minutes.
More people will access TV, films and music via a broadband connection. Home working and high-quality two-way video calls will become commonplace.
However, the cost of installing the new fibre-optic cable - replacing copper wires - will be passed on to consumers through monthly bills.
Construction of the new network, which will take place over the next three years, will involve huge disruption, with roads torn up to lay thousands of miles of cable.
This was not not necessary when broadband began because most services operated on BT's copper wire network.
BT will be in the vanguard of the construction of the new national fibre optic network.
It is beginning trials in North London and South Glamorgan and plans to extend the system to ten million homes - around 40 per cent of the country - by 2012.
Virgin, which has already installed a cable network, is upgrading this to deliver broadband offering 50mbps to millions of homes. It claims its system will eventually offer 200mbps.
Details of the plans were set out yesterday by Ofcom. It made clear that it will allow BT and Virgin to pass on the huge cost of building the hi-tech network to customers. This means the firms can be confident that they will make a profit.
In future companies will pay BT and Virgin for the right to sell a range of internet, film, television and other services across their cables.
Ofcom chief executive Ed Richards said: 'Superfast broadband represents one of the most important developments in communications for many decades. It will deliver significant benefits to consumers and businesses.
'Our message today is clear: there are no regulatory barriers in the way of investment in superfast broadband; we want to promote investment but also ensure that there is fair and effective competition for the future.'
While the cable network can be built relatively rapidly to cover cities and large towns, BT and Virgin will not extend it to rural areas. Taxpayers may be asked to fund cables to these areas.
Britain has lagged behind other nations - such as France and the U.S. - in the installation of superfast broadband amid questions over who will pay for it.
Currently, more than 60 per cent of broadband subscribers - 7.6million homes - are signed up to deals promising speeds of 'up to 8mbps' However, the actual average speed delivered is only 3.6mbps, while many get 2mbps.
Someone with 2mbps would take 4hrs 48mins to download a DVD quality film. It would be just under two minutes with 100mbps.
At present, the fastest broadband is offered by Virgin Media, which boasts a connection speed of up to 50mbps.
Customers pay [pounds sterling]35 a month if they also subscribe to a Virgin phone line, which is [pounds sterling]11 extra. It is thought the 100mbps line, when it becomes available, might cost up to double that. The fibreoptic cables will run to cabinets in the street.
The last link to the home will remain over existing copper wires, but this is not expected to slow down the connection significantly.
All the information going to houses in a street will travel much faster over fibre-optic cable than it does over copper wires. Because only a small part of the information is going to each house over a short distance on copper wires, the reduction in transmission speed will be small.
ELECTRONIC REVOLUTION AT THE HEART OF YOUR HOME
Superfast broadband will allow a family to watch TV, surf the web or make video calls at the same time. Currenty, broadband often slows and crashes if being used for a number of tasks
INTERACTIVE GAMING
Users will take part in online gaming battles, challenging others around the globe
MUSIC DOWNLOADS
ALBUM 2009: Two minutes 2012: Ten seconds SINGLES 2009: 20 seconds 2012: One second
REMOTE CONTROL HOME
A mobile phone link to the broadband system will allow people to control the heating or washing machine
ENTERTAINMENT
Families will watch definition TV via The TV will operate as a PC
FILM DOWNLOADS
2009: Two hours
2012: Two minutes
THE CONNECTION
Fibre-optic cables will run to cabinets in the street. The last link to the home will use existing copper wires
HOME OFFICE Parents will communicate with colleagues via highquality two-way video link. Commuting will be reduced because work can be carried out effectively at the home PC
The system will also allow 'face to face' tutoring for children
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