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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.

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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.

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

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."

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