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Autumn Statement 2016 confirms £1bn investment into ‘full-fibre’ and 5G broadband

The money will fund 5G mobile networks and extension of fibre-optic networks

TWO million British homes and businesses may soon be able to enjoy a much faster internet connection.

Delivering his Autumn Statement today, Chancellor Philip Hammond has announced a £400million investment in boosting broadband speeds.

The money will fund extension of fibre-optic networks directly into homes
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The money will fund extension of fibre-optic networks directly into homesCredit: PA:Press Association

He also pledged £740million to develop ultra-fast 5G mobile networks, which will be provided to some local authorities.

The £400million will fund the extension of faster fibre-optic networks across the nation - and the public money will be matched by private investment.

Meanwhile, smaller internet companies will be able to borrow from this fund in order to provide a service that can complete with larger internet service providers.

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As a result of this investment, more secure, faster fibre-optic cables would run directly to homes and businesses, instead of a cabinet which transmits the connection using copper cables.

The Treasury believes two million more homes would get "full-fibre" broadband, which can reach speeds of up to 1GB per second.

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What is 5G?

- The G in 5G stands for "generation". The first generation was created in the 1990s
- It will increase download speeds up to 10GB per second
- Load times will also increase significantly
- Currently network operators are working on different variations of the technology
- It is set to provide up to a million connections per square kilometre
- The Next Generation Mobile Networks Alliance says it will be rolled out by 2020

Currently, only two per cent of families have the ultra-fast connection, which works by pulsing light through cables made of glass or plastic.

Earlier this year, Ofcom reported 1.5 million people in the UK have "below minimum" internet service.

Commenting on the proposed investment, Alex Neill, Which? Managing Director of Home & Legal services, said:"Broadband is an essential part of modern life. The UK has lagged behind many other countries and people regularly have problems with speed and connectivity.

"This extra investment must lead to a big improvement by the industry, so that consumers get faster, more reliable broadband and automatic compensation when things go wrong.”

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