The digital economy – retailing, entertainment, high-speed connections – stands every chance of continuing to expand, however grim the news is from elsewhere. The biggest threat to this was thought to be the UK’s failure to invest in high-speed broadband. But there are signs that government, regulators and industry are working out how to improve the infrastructure. The appointment of Stephen Carter, who understands the challenge, as minister for technology, communications and broadcasting is positive. But another issue is emerging that could still impede the broadband economy. Unlike infrastructure, which has had a great deal of effort expended on it, it suffers from a policy vacuum.

Increasingly, privacy not pipes are the front line in the battle for broadband Britain. Put simply, we expect most of our online entertainment and information free. The music industry has discovered this to its cost, as illegal downloads proliferate. If content is to be delivered free, but with revenue to intellectual property owners, it must be supported by advertisements. Advertisers will do this only in exchange for knowledge of who is receiving their promotional message and when. Technology exists to track our every move online, but such intense scrutiny has led to a state of war between commercial pioneers and privacy campaigners. At stake is a potentially huge expansion of the internet economy.