DEMOS

The vision of 'broadband Britain' will only be achieved if existing technology companies provide wider access to electronic networks. But it also vital to the public interest that network innovators are free to develop new technologies we can't yet imagine.

Unless government and regulators can guarantee the freedom to innovate, our future will be restricted to incremental improvement of existing technologies. This report argues that regulation of electronic networks must secure a space for innovation within the networks themselves.

As the rapidly growing WiFi network and the internet itself have taught us, 'disruptive innovation' often happens at the margins of the market. The long-term benefits of network innovation should not be sacrificed in favour of the government's desire for a swift roll-out of broadband.

This report argues that without continuous network innovation, the government will fail to achieve its stated aim of turning Britain into 'the most extensive and competitive broadband market in the G7 by 2005'. Although the take-up rate of broadband in the UK is picking up, it's less certain that regulation has secured the conditions for continuous network innovation.

The creation of new 'super regulator' Ofcom offers the chance to create a network environment which promotes innovation. From the start, the big question Ofcom faces is whether the long-term interests of broadband Britain are best served by backing the main player - BT - or trying to improve the long-term prospects for new entrants to enter the market.

The success of broadband Britain relies on making the right choice. In The Politics of Broadband, the authors argue that policy makers must act decisively in favour of network innovation - by breaking up BT.

James Wilsdon is head of strategy at Demos and Daniel Stedman Jones is a researcher.