UK’s rural broadband plans descends into farce

Plans to boost superfast broadband in rural areas descended into farce as BT was left as the only bidder for £530 million of state funds.

Ministers’ efforts to deliver superfast rural broadband have dragged on for two and a half years, triggered an European Union probe, and cost millions in consultancy fees. The outcome raises questions about the procurement process, designed to encourage competition with BT for the contracts to deliver the government target of providing nationwide Internet access. The Financial Times has learnt that the only other government approved bidder, Fujitsu, no longer intends to bid for contracts in the £530 million tender. The tender has attracted considerable criticism from companies over difficulties that new entrants have in competing with the scale of BT, which already owns a national telecoms network and service infrastructure.

BT has won all available funds under the procurement, and is in line to pick up the rest of the £530 million allocated across more than 40 local contracts organized under Broadband Delivery UK (BDUK), part of the Department for Culture, Media and Sport.