Birmingham and the West Midlands could become the back office for the City of London, a leading businessman has forecast.

But the region must push on fast with next generation broadband if it is not to be beaten to the opportunity by rivals such as Paris, Glyn Pitchford warns.

Mr Pitchford, elected West Midlands Business Council business representative on the City Region board, says we would then be “in prime position to take advantage of the next stage in the re-development of the global economy”.

The move is considered vital for business competitiveness, inward investment and jobs.

The strategy receives a public airing this week at the NextGen Roadshow in Birmingham.
Organised by the Community Broadband Network, the one-day event takes place at the Maple House Conference Centre in Birmingham.

The City Region board has called for an action plan to be presented to it by September – a Task and Finish Group is working on the possible roll out.

The ICT hub at the proposed £400 million Walsall Gigaport development would play a key role, acting as a data storage centre.

Birmingham City Council, Coventry City Council, Telford and Wrekin Council and Walsall Metropolitan Borough Council are at the forefront of the project and various funding options are under discussion.
Mr Pitchford will tell the Roadshow: “Advantages include the Midlands providing support to the world’s largest financial centre – the City of London – with technical or so called ‘back office’ functions happening here because we have the infrastructure and the skills – rather than being located in the high cost base of Canary Wharf.

“And the credit crunch has not hit our plans. Because we know that a strong financial services sector will still be required and that other sectors, such as innovative manufacturing that needs a strong ICT infrastructure, are likely to develop in the new economy that will follow this recession.

“But we are not being complacent. We know that Paris, for instance, is trying to market itself as the next generation broadband base for business. So we cannot sit back and take a wait and see approach. We must take
action. And now!”

The establishment of a next generation broadband platform utilising fibre optic technology would enable companies to do business 120 times faster than current broadband speeds.

Mr Pitchford will state: “This will make the Gigaport attractive to innovative start up companies in sectors such as digital content creation, software development and IT related services as well as major international and national players involved in the financial, media and healthcare sectors – so, we’re talking about the market coming from a spread of the public and private sectors.

“The benefits of the Gigaport will also spill out into the wider community with the capability to provide enhanced interactive services to the home.”

The Gigaport development comprises a 4,000 sq m data centre, 23,000 sq m of work space and is expected to create up to 3,200 jobs.

Planning permission has already been given although a start is yet to be made.

“The intention is to roll out next generation broadband access to all commercial properties at the heart of the Midlands with this network tied into the ICT hub at Walsall,” Mr Pitchford will say. “The advantage for jobs and business is clear – 21st century communications that will help with inward investment and make the Midlands the natural maybe first choice home for innovative businesses.”

And this ties in with Advantage West Midlands’ photonics strategy.

“The photonics expertise in universities like Aston demonstrates that we have a skilled platform to make this region a world class centre for next generation broadband.

“But we cannot introduce next generation broadband into the Midlands without thinking of the wider training needs that will be required for the new technical jobs that would follow. That is why our work includes engaging with universities and colleges so that they are prepared to provide the courses that are needed for the new economy.”

Hence the need for September’s detailed action plan for implementing the vision, notes Mr Pitchford.