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Autumn Statement: broadband boom

The chancellor has earmarked £1bn for network investments over the next four to five years
November 23, 2016

Victims of sluggish internet speeds may have cried with relief after chancellor Philip Hammond announced the government will invest over £1bn in fibre broadband networks and ultra-fast wireless '5G' communications by 2021. CityFibre (CITY) investors also cheered, sending shares up 7 per cent in the builder of fibre optic infrastructure in urban areas.

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The government's goal is to deliver faster, more reliable broadband to homes and businesses across the UK, support the next generation of mobile connectivity, and position the UK at the forefront of the 'internet of things' phenomenon. Authorities plan to invest £400m in a new Digital Infrastructure Investment Fund, at least matched by private financing, that will invest in new fibre networks and support companies' efforts to expand fibre connectivity. It has also earmarked £740m for the New Digital Infrastructure Investment Fund to invest in fibre and next generation 5G networks.

Other initiatives include five years of full relief from business rates for new full-fibre infrastructure, starting from 1 April 2017. Authorities also plan to provide funding to local areas to promote investment in fibre networks across the UK, as well as integrated fibre and 5G.