MPs criticize handover of rural broadband contracts to BT

A UK government committee scrutinizing public finances has criticized the state-backed rollout of rural broadband that led to all contracts being awarded to a “monopoly supplier” in BT. The public accounts committee, chaired by Margaret Hodge, also questioned BT’s transparency following criticism of the process in evidence from rival bidders for £530 million of state funds.

The parliamentary criticism follows a report from the National Audit Office which found that the plans to push superfast broadband to more than 90 percent of the UK were being delivered nearly two years behind schedule and without competition. BT has won all the contracts to provide local broadband under BDUK, the rural broadband strategy, and is set to win the remainder after all rivals withdrew citing problems with the process. BT is matching some of the state funds on the rollout of broadband to areas that would not otherwise be economically viable. Providing evidence to the committee on Wednesday, rivals to BT criticized the model created to distribute the funds through local authorities, which they claim favored BT.