Historic 'Digital Britan' Report: Govt suggests BBC Channel 4 merger

London. Experts are calling it a historic report that will change the way Brits use internet and access various sources of entertainment, including television and films. Britain's Communications Minister Lord Stephen Carter announced his country's digital policy in the British parliament, Jan 29, 2008, that says getting broadband to everyone in the UK by 2012 is one of the central ambitions of the Labour government. Kathy Robinson reports for India-EU Film Initiative

The government finally threw its backing behind Channel 4, which is struggling to cover its funding gap, and signalled that a tie-up between the broadcaster and BBC Worldwide, instead of a merger with Channel Five, was the best way to protect its future. Channel 4 has called for renewed public support after claiming it faces a £150m annual funding gap from 2012.

The most likely option for plugging Channel 4's £150m funding shortage is a partnership with the BBC, making it into a second public service broadcaster. There appeared to be a u-turn on the possibility of top-slicing the BBC's licence fee to finance Channel 4 - an option that the regulator Ofcom ruled out in its public service broadcasting report last week.

The UK is taking lead in modernising its Digital policy in order to to generate jobs. Prime Minister Gordon Brown pledged government support for British companies providing digital communications and broadband networks, part of a plan to curb the impact of the recession.

Lord Carter, former head of regulator Ofcom, also introduced plans to clamp down on internet music and video piracy. He suggested Channel 4 should consider a merger in order to ensure its future as a public service broadcaster; and pave the way for the creation of the next generation of super-fast broadband services.

PM Gordon Brown believes the industry, with revenue of 50 billion pounds ($72 billion) a year, can help revive economic growth by laying down the infrastructure needed to support the next generation of companies that depend on computer technology.

“Our digital networks will be the backbone of our economy in the decades ahead,” Brown said in a speech in London Jan 29. “Even at this difficult time for the economy, we will not turn our backs on the future.”

Meanwhile, the European Commission is considering investing €1 billion (£0.92 billion) in broadband to help spur the economy, as part of a larger stimulus plan across the European Union.

The move follows similar suggestions in the US and the UK to invest in networking infrastructure as part of a modern “New Deal” to pump more money into the faltering economy.

The commission said it believes broadband could create one million jobs and boost the EU economy by €850 million by 2015.

“The extension and upgrading of high-speed internet infrastructure is an economic and social imperative,” commission President José Manuel Barroso said in a statement.

Much like those plans discussed in the US and UK, the European Commission wants to spend the money extending high-speed internet to rural areas. According to the EU, 93 per cent of European’s have access to such broadband connections, but that falls to 70 per cent for rural areas – as low as 50 per cent in some countries.