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Slow UK broadband Means A Slow Economy

The United Kingdom may dominate many industries globally, but the telecommunications industry certainly isn’t one of them. According to reports, UK broadband is super-slow and much of the rural population are struggling to get online.

According to the Financial Times, there are British towns and villages with virtually no mobile signal and barely any broadband, which is having a devastating effect on the economy.


“With a minimum speed guarantee of half a megabit per second over a landline, children are forced to do their homework at school and farmers lodging government forms have to travel to the nearest big town,” the newspaper writes.

‘rural regions are becoming increasingly frustrated with the services provided and are even taking matters into their own hands’

Areas like Exmoor in the West country, and other rural regions are becoming increasingly frustrated with the services provided and are even taking matters into their own hands to rectify the problems.

“Families do not want to return to B&Bs, however beautiful the rural Exmoor landscape, because their children refuse to spend a holiday without Wi-Fi. Businesses have to start up elsewhere, put off by the lack of communications infrastructure that customers and suppliers now demand as a given,” the Financial Times adds.

“On Exmoor, taxpayers have paid 4.6 million GBP in subsidy to an outfit in Worcester that proposes slinging telephone lines between trees across the moors to access a better signal to rural homeowners.”

British Telecom has also helped members of the public take matters into their own hands where “120 households raised 75,000 GBP to pay Openreach a less-than-commercial price to bring two superfast fiber broadband cabinets to their village.”

 

According to the UK’s regulator Ofcom, the UK ranks fifth in the world for availability of broadband, but only 17 of 19 nations when it comes to access to the best technology. Experts blame the UK’s BT telecommunications firm for a bad service, which is responsible for connecting many internet providers to their customers in the country.

The problem is becoming so bad that not only businesses in the West country are affected, but the economy is suffering even in built up areas like London and Guildford, and more widespread in areas including Yorkshire and the Lake District.

Businesses complain of misleading promises as to the quality of UK broadband services they receive, and technical issues are causing problems up and down Britain.

According to Network Communications News (NCN), the blanket rollout of faster internet speeds hasn’t been the revolution the government and communications companies were proposing seven years ago. Broadband is slow, there are issues throughout the United Kingdom, and customers are becoming increasingly frustrated with poor services.

Government ministers have said they are implementing measures that aim to achieve superfast broadband for all, and insist they are on track to reach 95% of the UK by the end of 2017. Governments around the world are aiming for UK broadband speeds of over 100Mbps for most of their citizens before 2025, and the UK insists it will also hit those targets.

Ofcom states that a staggering 1.4m homes across Britain still could not get a broadband connection offering speeds of 10 megabits per second. FT states that these findings only prove the failings of government, and their lack of political direction.

Local government, national parties and leading telcos have all been criticized for their failings. Meanwhile, Ofcom has proposed a universal service obligation, which would ensure that every home and small business had the right to a “decent, affordable” broadband connection. However, this would only come into force in 2020, and would only provide speeds of 10 megabits, 40% below the government’s definition of “superfast”.

Sources say it will cost “at least 25bn GBP” to deliver full fiber across the UK, to bring it up-to-speed. But, it would seem the British government doesn’t view broadband as an “important infrastructure project” in desperate need of investment or attention. For this dream to become a reality, and for Brits to receive a superfast UK broadband speed, it will take bold steps by policymakers, legislators and politicians to ensure the infrastructure is ready to deliver world worthy services.

European Commission Requests €1 Billion For EU Infrastructure Funding

The European Commission is appealing for funding for its Connecting Europe Facility – transport to the tune of €1 Billion. This will be used to boost EU infrastructure funding for innovative, sustainable, bold upgrades to the transportation infrastructure. It is also aimed at supporting employment for the current state of infrastructure. This will supplement the Commission’s Energy Union Strategy for Low-Emission Mobility. The “sustainable transport” aim is for the implementation of the initiatives for road mobility.

Maroš Šefčovič, the European Commission Vice-President for the Energy Union said that transportation for the future must be clean, competitive and connected, which also happens to require new methods for funding towards the Low-Emission Mobility Strategy for Europe program.


According to Jyrki Katainen, the European Commission  Vice President for Jobs, Growth, Investment and Competitiveness, the €1 Billion for Connecting Europe Facility – Transport will complement the European Fund for Strategic Investments (EFSI). It will allow for flexible solutions in combination with other EU funding sources with the aim of maximizing program impact in line with the EU’s policy objectives.

EU Infrastructure Funding - Connecting EuropeVioleta Bulc, the Commissioner for Transport stated depending on public financing alone will not be able to raise the needed funds. The Connecting Europe Facility (CEF) will be calling for proposals for grants from a variety of sources including the EFSI, the European Investment Bank, National Promotional Banks and private sector investors. Organizations who want to join the CEF will be asked to provide proof that they have the facility to match public sector funding with complementary private sector funds.

The bold and innovative projects to be selected will have to contribute to the Trans-European Transport Network in a sustainable and seamless manner with innovative methods of transportation. Emphasis will be on projects meant to streamline the flow of goods and traffic, as well as support cross-border links, among other goals, including enhancing the transport network via new inter-modal and inter-operable means.

Elon Musk Tesla Semi Truck Short Play Opp?

Elon Musk is tweeting again, this time about plans to replace the commercial trucking industry with electric trucks built by Tesla. According to Musk, the full scope of his vision for making a play in the production of large commercial trucks will be delivered in an announcement in September.

Immediately, Alex Potter, a stock market analyst from Piper Jaffray, made news by placing a downgrade on both Cummins and Paccar, two of the largest American manufacturers of engines and trucks. He claims that Tesla entering the market will put pressure on these mainline truck manufacturers.


Well, not to discount the wonders of everything Musk and Tesla, it is probably fair to take Mr. Potter’s recommendation with a pinch of salt. A brief perusal of Potter’s position on Tipranks shows him at the unenviable rank of 4,157 out of 4,557 analysts surveyed. A ranking which shows that you could do worse than take advice from Mr. Potter, but not much worse. In fact, savvy investors are probably going long on Cummins and Paccar as you read this.

As for Tesla disrupting or pricking the industrial truck market, it won’t be any time soon. Challenges facing electric passenger vehicles, such as charging stations, charge time, battery life, will all be even more difficult to overcome when real horsepower is essential. Commercial truck production can’t be solved by going lighter and smaller, it has to be solved with muscle. And trucks need to travel thousands of miles without a break, which is a big challenge for the electric car industry to overcome. It will be more difficult and complex with the much larger batteries and the much higher demand for traveling long distances without breaks.

Musk may be a visionary, but he is spread thin and his perpetual hype and spin is beginning to wear with investors on the street. At this point Tesla has built some lovely cars, but they haven’t produced a profit on any venture. Musk has demonstrated an ability to burn through billions and claim success, while manufacturing a tiny fraction of the number of cars that companies like Ford, Toyota and Hyundai produce.

And that’s fine. But Tesla’s valuation, at one-half of the market cap of giant Ford, is a pretty good indication of a hype machine in full swing, rather than a solid long-term investment opportunity.

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