In reply to a
post by Anonymous:
Consider if electricity worked like broadband does. You move in to your new home and notice that every time you turn on the kettle, the fridge goes off. You call the private electricity company which is backed by a private largely unregulated infrastructure provider.
After being warned you could face huge bills for a call out, you take the plunge, an engineer arrives, and concludes that there's no fault.
Actually, it's your fault for living 3km away from the substation. You cannot seriously expect to get the same current at that distance, surely. You'll just have to put up with it. Your options are to pay for another electricity pipe into the house and have them bonded together, or to pay thousands of pounds for a custom one-off installation.
You have electricity, end of. Shut your moaning. If you want decent electricity, go live in the narrow strip of land nearest to the sub-station.
Do you see where I'm going with this 
How far would we have got, as a country, with that approach?
It may come as a surprise to you, but this is pretty much
exactly what happened to electricity as it went from its initial public generation (in the 1880s, with private companies) through to the concept of being a "utility".
The UK electricity market was, at first and of course, fragmented. It had city-based generating plant, with a variety of voltages, frequencies and currents. Because each city was supplied independently, there were frequent overloads and breaksdowns (yes, turning on too many lights would blackout the entire city).
Distance certainly *was* an important factor. At the outset, no-one knew what voltage was best, or whether to supply AC or DC. There was no concept of a national standard, and certainly nothing that could distribute electricity over long distances without losses.
In the time between the 1880s and the 1930s, if you wanted better lighting, then the answer was indeed to choose carefully where you lived, or to be very rich.
It was only in 1925 that agreement was reached on having the high-voltage national grid, that has subsequently come to give us a stable supply. It then took until 1933 for the regional cores of the grid to be constructed, and 1938 for those to be connected together to form one national grid.
It is this grid, and the network of substations feed off it, that gets you away from local dependencies, and lets you start to think of an electricity supply as a ubiquitous, dependable, utility. (Actually, I think it was the creation of all the labour-saving devices - cooking, washing, drying - in the 50's and 60's that turned electricity from being a novel thing in itself, into the ubiquitous enabler of all those tools)
What happened in the UK? The first public generation of power was in 1881. By 1931, 50 years later, 35% of houses had electricity (and most concentrated on just lighting at the time). By 1938 this was 65%, and 85% in 1948.
Funny: A figure of "85%" is about the same as the Ofcom market 3 & market 2 areas we see today - the densely populated cities & towns. I wonder if that is a coincidence???
So stability of supply came about from 1933 onwards, with half the country being added to the supply up to 1948 - when labour's post-war nationalisation took place. In that time, the electricity generation continued to be by private companies, but the grid itself was established as a government body. Private companies with central regulation.
National roll-out of natural gas was even later than this (1970s-1980s), and isn't that still going on?
It seems that the rollout of broadband isn't so very different, after all. Just on a faster timescale - itself made easier (but self-limiting) because the national network of copper has already been rolled out over 100 years for a different service.
In every case, the early impetus comes purely from private companies. This continues through middle life, but central regulation coordinates expansion. Finally, regulation is added to compel supply to the uneconomic parts of the country - but only after there's a majority of the country that can fund it.
Ofcom is now setting price controls to limit the cost of broadband to the least economic exchanges (market 1), and the government will probably set a universal service obligation of 2mbps. From first service in 2000 with a maximum of 2Mbps, to USO where it is the minimum, in 12 years or so. And at about 10% of the price.
I'm not sure how nationalisation is actually going to help this go further.
In fact, I'm struggling to think what large infrastructure projects *have* come from nationalised industry. The only one I can readily think of is the road network.
Sources:
National Trust - a good read
Electricity in the North-East in the late 19th century.
Wikipedia on the National grid