BT accused of 'effective monopoly' over rural broadband

BT has an effective monopoly of the taxpayer-funded rural programme, according to a powerful committee of MPs. The Public Accounts Committee accused the Government of handing over the keys to the 44 contracts of the £1.2bn scheme.

BT broadband 'not impacting on rural communities'

BT is "not impacting on rural communities" despite winning all of the rural broadband contracts from the Government, the head of an influential committee has said.

Labour's Margaret Hodge warned other competitors "might be squeezed out" of the rural broadband market by BT's dominance.

Whilst BT claims it is making further concessions, this is not impacting on rural communities.

Local authorities are still contractually prevented from sharing information to see if they are securing best terms for the public money they spend.

Communities can still not access the detailed data they need to understand whether they will be covered by BT's scheme in their area.

Other broadband providers might be squeezed out of the rural market by BT's actions.

– Margaret Hodge

Read: BT accused of rural broadband monopoly

BT accused of rural broadband monopoly

BT has an "effective monopoly" over rural broadband after the Government awarded all of the 44 contracts from the £1.2bn scheme to the telecommunications giant, a group of influential MPs has said.

Read: Children's education affected by 'slow internet speeds'

Broadband
BT's position as a monopoly supplier should have raised a "red flag", PAC said. Credit: PA

Read: 'Rural penalty' marring country life

In another another scathing report of the rural broadband scheme the Public Accounts Committee (PAC) said the way it had been set up "failed to deliver meaningful competition".

This meant BT had been put in a strong position by the Department of Culture, Media and Sport (DCMS) making it more difficult for customers to insist on value for money, according to PAC.

Margaret Hodge, who chairs PAC, said: "Since our hearing in July last year, when 26 of the 44 contracts to deliver this were with BT, all remaining contracts have now also gone to BT.

"Despite our warnings last September, the Department for Culture, Media and Sport has allowed poor cost transparency and the lack of detailed broadband rollout plans to create conditions whereby alternative suppliers may be crowded out."

Read: BT's 'near monopoly' of rural broadband attacked by MPs

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