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Business Argus

Tuesday, January 28, 2014

Premium broadband critical for Newport

By Jo Barnes
01633 777240 jba@gwent-wales.co.uk Twitter @SWABusiness
LIKE most cities, Newport benefits from good superfast broadband in many places. But not everywhere. And for some, superfast is just not quite enough. The Super-Connected Cities project developed by Newport City Council with the Department for Culture Media and Sport aims to deliver a step-change in the broadband infrastructure for the city . Cllr Bob Bright, leader of Newport City Council, said: World-class broadband is critical to the success of our businesses and our economy as a whole. Its obvious that world class broadband services need a world class broadband infrastructure. The aim of the Super-Connected Cities project is to bring that world class infrastructure to Newport, and to make sure our businesses take full advantage of the services available. Many small businesses can be transformed by existing superfast broadband services. BTs regional board member Mark Williams said: Superfast broadband is already available to many small businesses across Newport and the increase in speed compared to ordinary broadband is fantastic. The increased functionality that provides small businesses is an important differentiator allowing them to significantly improve the way they do business. However, although superfast broadband is suited to many small businesses, some businesses already need more. In most places this means a big step to having a dedicated private circuit. But these are prohibitively expensive for most small businesses. Ultrafast broadband has been developed to fill the gap. Different technical solutions are possible, but a mix of fibre-optic cable and high speed wireless is usual. Ultrafast broadband services are provided by several specialist providers.

By Gerald Davies, Kymin executive chairman

BACK in March 1966, at the age of 22, I bought my first home. It cost 8,625 and the mortgage rate was 8.5 per cent. The price seems ludicrous today, but thats whats happened to the value of money . Its not just that house prices have risen, which they have, but inflation has eroded the value of cash. During the following years, inflation has had two major influences on our individual finances. It has hugely increased the value of assets, such as our homes. The reverse of the coin is that it has destroyed the value of any cash savings. May I quote Mark (now Lord) Weinberg? He said: In the medium to long term, asset based investments are the most reliable defence against inflation. Mark founded Hambro Life Assurance in 1971 (later Allied Dunbar). Inflation today is two per cent. Some mortgage rates are less than that, typically lifetime trackers arranged in late 2006, when there were some silly deals around. So, those people have a wonderful deal. Recently inflation was as high as 5.2 per cent. You have been warned. If you have cash ISAs, you can switch them into Stocks and Shares ISAs without losing their tax efficient status or affecting this years entitlement. There are no absolute guarantees in life, but the FTSE100 index was 3,500 five years ago (March 2009). Today it is 6,800. The last 48 years have taught me that its better to own assets rather than have cash savings. Remember, with Stocks and Shares ISAs, you can get at your money, without tax, without notice and without penalty .

The Wave, Newport Some of these are actively supporting Newport City Councils Super-Connected City project and will be at the launch event on Thursday to answer questions from Newport businesses. One company offering ultrafast broadband services is Cardiff based Spectrum Internet. They are already providing services in Cardiff through the SuperConnected City project there, and they are hoping to do the same in Newport. Giles Phelps, Spectrum Internets managing director said: Although superfast broadband is a fantastic improvement compared to ordinary broadband, many businesses will benefit from even faster speeds particularly faster upload speeds. But most businesses dont need those speeds all the time. Ultrafast broadband provides that compromise of giving much greater speeds, but maintaining an affordable service for small businesses. Our wireless solution is proving particularly popular in Cardiff, our networks have a range of up to 35 miles with line of sight which can be used to link offices in different locations. Its a particularly cost effective solution offering fast speeds for multi-tenant buildings and business parks. We can offer affordable high speed packages for small businesses with speeds up to 1Gbps from 50 a month. One of the companies in Cardiff already benefitting from the new broadband connection is recruitment company IntaPeople. IT Manager, Rob Samuel said As a business, we share the Internet between 30 members of staff which used to make the connection barely usable. He added Since the high speed link has been installed staff efficiency has greatly improved with tasks such as downloading CVs and accessing job boards done in a fraction of the time. We are now able to simultaneously run video interviews and conference calls without having to worry about degrading the internet for others. The new connection has improved staff morale and motivation considerably . The local business is now set to expand their services and is planning to add increased functionality to their website including online timesheets and video CV uploads. Broadband providers BT, Virgin Media and Spectrum Internet will be among suppliers providing advice to small businesses at the project launch event at the University of South Wales on Thursday January 30. For more information and to register, go to www.nweport.gov. uk/superfast.

Network forecasts boom for builders

Almost 18,000 new construction jobs are expected to be created in Wales over the next five years, according to new research released today by CITB Wales. The five year Construction Skills Network forecast shows that the Welsh construction industry is set to grow 3.4 per cent annually between now and 2018, fuelled by the anticipated start of build work at the Wylfa nuclear power station in Anglesey . As a result, infrastructure in Wales is set to be the chief driver of growth in Wales, second only to the South West, with average annual output growth expected to be 11 per cent, while overall annual output growth of 3.4 per cent will be significantly higher than the 2.2 per cent average annual growth across the rest of the UK. The private housing sector is set to be the second largest driver of growth in Wales, with key projects including the 1.2bn Coed Darcy development and the 75m regeneration works in Merthyr Tydfil and Swansea expected to boost employment and output prospects. Further commitment from the Welsh government to sustain investment in major infrastructure projects, including transport works and the electrification of the valley lines in addition to the Welsh Governments Help to Buy scheme, which is fuelling demand for some 245,000 new homes across the UK each year, are also anticipated to boost construction growth in Wales. Wyn Prichard, CITB Wales Director, said: The CSN report shows that things are starting to look more positive for Wales, following a challenging few years. However, employment levels in 2018 are still forecast to be below prerecession levels, so we need to ensure that measures are put in place now to secure sustained growth in the long-term. We need committed and targeted investment in infrastructure projects in Wales as well as innovative measures, such as the Wales Infrastructure Investment Plan.

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