Lack of govt vision
If you don't know her Martha Lane Fox was co-founder of LastMinute.com and is a very high profile speaker and thinker on all matters internet in the UK.
Judging by the conversation playing out I'd say the UK government is as shortsighted as the Australian one when it comes to a national broadband network.
Given the rapid rise of China over the last few years. Plus the continued growth of India. I'd say there's a strong possibility that Australia and the UK will be third world countries by the time my kids are my age.
Pretty sad really.