During the global economic crisis, the attention of governments around the world is quite rightly focused on the financial sector. In the UK, we continue to do whatever is necessary to support our economy during testing times. But at the same time we need to ensure we have the right policies to equip the country with the physical and virtual networks to be innovative, prosperous and productive in the future.

Digital communications networks represent a crucial component of modern Britain’s infrastructure. Digital networks will be to the 21st century what the electricity grid was to the last. Convergence — the coming together of different means of delivering communications — is becoming a reality. Today, we are launching work on The Digital Britain Report, which will provide a converged strategy for a converged future.

Today, the ICT and broadcast sectors in their own right account for nearly 6 per cent of our GDP, £52 billion of turnover and over 500,000 jobs. More than that, they touch every part of the economy, enable every business and enhance the lives of everyone in Britain.

Digital communications are vital to business success and competitiveness, and enrich the social, cultural and educational landscape. Access to digital communications is an increasingly important driver of social mobility and inclusion. Availability of information, and the ability to interact with vast communities of people regardless of location, open up opportunities like never before.

The Open University, founded by Harold Wilson’s Government in 1969, was established in the belief that the “white heat of technology” could open up campus-quality learning to those unable to attend university. As the OU approaches its 40th anniversary, technology is moving us closer to a country connected as one by open, high-speed access to information, learning and entertainment in a way unimaginable 40 years ago.

As these benefits become widespread, it is important that we do not leave people behind. Today, 42 per cent of homes still do not have broadband access. This can have serious implications: OECD tests show that students with one computer at home perform significantly better than those without. More than 90 per cent of jobs now require ICT skills. And families able to e-retail could save nearly £300 per year.

We are already taking steps to address the danger of a gap. We will shortly be bringing forward a Digital Inclusion Action Plan, and we recently announced £300 million of funding to ensure all school-age children have access to the internet.

As a government, we are proud of the success story so far. Our policy to foster a climate for investment, innovation, competition and quality has today delivered choice and value to viewers, listeners, and users. But things are changing fast and we need to keep up.

Five years after the Communications Act 2003 set a world standard in creating a converged regulator (Ofcom), we are seeing yet more innovation as networks converge and the services people enjoy and businesses depend on — video, audio, music, news, interaction — are each delivered by many means, rather than one.

The Digital Britain Report (DBR) will be published in spring, setting out our strategy for harnessing this change. A team led by the Communications, Technology and Broadcasting Minister, Stephen Carter, will study what the current arrangements are delivering, identify where further action is needed and make recommendations for action across a wide range of policy areas. We will be working closely with the companies investing in digital communications, and those who use them and we will be focused on the twin goals of quality and economic success.

The objectives the DBR will look to deliver are open markets; empowered and informed consumers and citizens; universal access to high-quality content, a responsive, up-to-date regulatory framework and, importantly, a world-leading position for the UK in this critical sector.

At this time when the economic wellbeing of the country is under so much scrutiny, a plan for Digital Britain is something we cannot do without.

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