The Universal Service Obligation (USO), applied to both telephone calls and dial-up internet, legally obliges the telecommunications companies (telcos) to offer a minimum service. In other words, it has to do what it says on the tin.

FRIACO (Flat Rate Internet Access Call Origination), introduced in June 2000, fixed the monthly rate, and so made dial-up internet affordable, removed consumer confusion about multiple service offerings and tariffs, boosted consumer confidence, drove demand, encouraged competition within the industry and, of course, inevitably stimulated innovation and the implementation of new technologies, in particular DSL and wireless. The Campaign for Unmetered Telecommunications deserve public recognition and a place in history for the impact of FRIACO.

However, with "broadband" in 2006, the EU Commission and Ofcom have both decided that no USO is necessary on broadband. This is a regressive step. We are taking internet access backwards and it is creating the same situation with broadband as we see in the mobile phone industry - confusion, overpricing, lack of innovation, consumer dissatisfaction, industry greed etc. However, as mobile access has become essential to many, most consumers are shouldering the problems, with Ofcom seemingly failing to protect the consumer sufficiently.

Additionally, with the stealthy abandonment of a FRIACO-type agreement by the ISPs and telcos, consumers are increasingly faced with a mayhem of tariffs and services few can understand clearly, limited capacity for uploading and downloading, plus misleading advertising and hype eg about VoIP or 'free' services. This stymies the very competitive marketplace the EU Commission and Ofcom seek to encourage as consumers flounder in confusion and the telcos capitalise on this. Forward progress to the next technology eg fibre optics, or applications eg video on demand, telemedicine etc is now driven only by the telcos, and not by the market.

Even with a minimum USO on broadband, eg 512kbps symmetrical, millions of consumers across the EU would be able to experience more reliable and 'useful' broadband. It would not be long before consumer frustration, as with dial-up, would drive demand for better connections and alternative, advanced technologies that could deliver the applications and services consumers wish to use. This is in the telcos' long-term interest, although whilst the regulators allow them to sweat the copper asset as long as they choose, we are unlikely to see this occur very quickly.

Suffering asymmetrical services, download limits and reduced capacity is NOT the way forwards, and some consumers feel actually worse off on that level than when FRIACO was adopted for dial-up on 1st June 2000. Our Notspot survey continues to show that there is a deep feeling of frustration at a) being entirely unable to access broadband services to live, work and play and b) being unable to access broadband as available in other areas of the world eg symmetrical or high speed. Reasons given by the telcos for this situation are often bordering on the unbelievable, and rarely stand up to scrutiny.

There is a distinct similarity to the situation in the UK prior to the introduction of the Uniform Penny Post in 1840. Prior to that date letters were charged according to distance and could cost up to 8d, equal to around £30 today. Rowland Hill showed that letters could be carried anywhere in the country for a fraction of penny and still make a profit, hence the Penny Post was born. Interestingly, the telephone service still gets away with operating in the pre-1840 manner: charging by distance and duration, or 'inch, second, byte'.

Bandwidth, we are told, is scarce, and costly. This is a myth, and equates to postage needing to be expensive.

In 1839 there were 76 million letters posted in the United Kingdom. In 1840, after the introduction of the Penny Post, there were 168 million and ten years later this had doubled to an incredible 347 million letters. The idea of the adhesive uniformly priced label was adopted worldwide. So it can be with broadband, except this time the United Kingdom is failing abysmally to lead the way.

Broadband Britain really has gone backwards.

Copyright Lindsey Annison, April 21st 2006

23rd April - I've already been contacted by a CANdoer about how State Aid guidelines and de minimis would affect the adoption of the Penny Post if we were to go for it in 2006. Very, very interesting thought process.....add your 1d please.