Only government involvement will avoid catastrophic failure of critical digital infrastructure

06 December 2024 | Regulation and policy

Ian Adkins

Predictions


The transformative potential of digital technology has made it the backbone of modern human existence. Broadband access networks, backbone networks, submarine cables, data centres, satellites and cloud-based solutions are life-changing and life-saving. But on the flip side, network and facility outages are no longer merely inconvenient, but can be life-threatening for individuals and an existential threat for businesses. 

Resilient networks are thus increasingly recognised as a prerequisite for the functioning of modern society and economic activity. In the face of threats from geopolitical conflict, cyber criminals or physical disasters exacerbated by climate change, digital infrastructure needs to be robust and highly resilient.

Private investment naturally tends to trade off investment and revenue, and in many cases a resilient network is commercially less attractive than one that is used at the upper limit of its capacity. In such cases it is therefore likely that governments will feel the need to step in to drive up standards. The model for public-sector involvement will reflect the local circumstances – governments can invest directly or may choose to apply pressure through regulatory policy and licence obligations/conditions of authorisation in relation to specific products and services. 

What is clear is that any government that decides to leave the resilience of critical infrastructure in the hands of private companies whose primary objective is shareholder value may put the country at risk. This could lead to potentially catastrophic failure of a communications system that underpins the most important structures of our societies and economies. These include universal communications and postal services, emergency service access, energy networks, transport and finance.

Author

Ian Adkins

Partner, expert in broadband and digital infrastructure