Next generation broadband is expected to offer up to 100Mbps (megabits per second) speeds and will allow, for instance, a user to download songs in a matter of seconds even while watching high definition films. It could allow for a new means of delivering medical care, essential services for disabled people and offering solutions for the people currently cut off from broadband.

According to the UK regulator Ofcom, the super fast broadband’s pricing should reflect the investment made on next generation networks. The observation comes as part of the regulator’s consultation in the UK on how fibre networks can flourish. BT has already committed to investing £1.5bn (spread over the next four years) in fibre cable networks.

Ofcom has hinted government support may well be forthcoming for fast net services especially to rural areas that will not be financially attractive for private players to invest in. Tracking the new development, a broadband analyst with Screen Digest, James Garlick, thinks consumers may pay more for super-fast broadband initially. He said:

“Prices may go up but as soon as the competition, which currently exists for DSL gets extended to fibre services, prices will drop.”