Is It Time To Nationalise Broadband?

As public reliance on the internet has heavily increased, considerations for nationalised broadband have become a national conversation. This week, we consider the pros and cons of nationalised broadband.

The internet is a vital part of communication with others, and a wider connection with the world. Our reliance on the internet for information and communication has rapidly increased since the onset of the pandemic, and many of these changes have remained. Lack of access to the internet, or adequate broadband connection, can be isolating. But is it time to nationalise broadband to keep everyone connected?

Benefits of nationalised broadband

• Nationalised broadband is an investment – The UK currently lags behind other European nations in its connection. Only 8% of UK homes have full-fibre broadband, (compared to 71% in Spain). In the UK, certain areas do not have adequate access to fast broadband. Installing fibre-optic broadband throughout the country could lower costs for businesses, and make it more possible to work from home.
• Equity – Broadband has become of equal importance to other fundamental parts of modern life, such as gas, electricity and roads. Wider access to broadband as a national infrastructure could prevent isolation, and keep everyone connected.
• Increases consumer surplus – By decreasing business and household costs, nationalised broadband would enable a higher disposable income. This would be beneficial to businesses across the nation.

Arguments against nationalised broadband

• Loss of profit motive – The central argument against nationalised broadband is that providers would not be incentivised by profit, so the quality of service may decrease. If broadband was nationalised, the provider may also rapidly increase costs.
• It would be a long-term investment – If the government did decide to nationalise broadband, it is difficult to know if this would be a long-term commitment. If commitment dwindled, quality could decrease, or certain areas could lose adequate access to nationalised broadband. The high cost of nationalised broadband may not be feasible long term, as other expenses are likely to arise.
• Public sector debt – The cost of nationalised broadband would be high, and so government borrowing would cause the public sector GDP debt to rise.

The debate about nationalising broadband is complex, and there are many reasons for and against it. Despite this, the debate clarifies one thing in particular: access to the internet is a significant part of modern life. The debate also invokes us to consider what a lack of access to the internet could mean. For many people, the internet is fundamental to at least some part of their life, whether that be their job, communication with others, or access to information. Whether you think nationalised broadband is positive or negative, it is undeniable that the internet touches almost everyone’s life in some form.