Virgin Media and BT in broadband subsidy row

[Scubbie]

BBC News - Virgin Media and BT in broadband subsidy row

The government risks "sleepwalking into another monopoly" in the way it is allocating funds for rural broadband, shadow business minister Chi Onwurah has warned.
The Labour MP says she plans to tell the House of Lords communications select committee on Tuesday that the current system is "skewed towards BT".

Rival Virgin Media has already accused the government of subsidising BT.

BT says that others are welcome to bid for funds.

Open networks

Counties around the UK have been allocated a share of £530m of government cash. The aim is for them to match the funding and appoint firms to roll out super fast networks in their areas.

But the process has been slow. So far, just two contracts have been awarded - in Lancashire and Rutland. Both have gone to BT.

BT rivals Fujitsu and Cable & Wireless have withdrawn from the process in many areas - leaving the telecoms firm as sole bidder in some places...

[deadman1984]

so may look like bt will get all the funds

[Scubbie]

Other firms, including VM, are free to bid to put in the infrastructure. If you carry on and read the article, there is the following quotation:

In response, BT called on Virgin Media to open up its network to rivals.
"BT would be more than happy to compete directly with Virgin for BDUK funds but we doubt that will happen. That is because Virgin have steadfastly refused to provide open wholesale access to their network - a key BDUK requirement - and because they have shown no interest to date in supplying rural areas with broadband," a BT spokesman said in a statement.

"This is in contrast to BT who offer broadband services on a wholesale basis to 99% of UK premises. Fujitsu have announced their intention to bid for funds and so there will be a competitive process. We are already seeing this in several parts of the UK."