The UK Public Accounts Committee (PAC) claims the government has “failed to deliver meaningful competition”, leaving BT in a monopoly position in the procurement of £1.2 billion rural broadband scheme.
MPs of the committee have published a report criticising the government for awarding all 44 contracts under the Broadband Delivery UK (BDUK) scheme to the telecommunications company BT. The programme is designed to extend fast internet connections to hard-to-reach areas that are not considered commercially viable.
“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,” said, the Rt Hon Margaret Hodge MP, Chair of the PAC.
“We see the lack of transparency on costs and BT’s insistence on non-disclosure agreements as symptomatic of BT’s exploiting its monopoly position to the detriment of the taxpayer, local authorities and those seeking to access high speed broadband in rural areas.”
Hodge said that BT’s further concessions had no positive impacts on rural communities. She demanded detailed mapping of the implementation plans along with speed of service from DCMS and BT. She also noted that the information about the rollouts is being withheld.
The PAC calls DCMS to work “urgently” with all local authorities. Hodge stated that the monopoly position of BT should have been a ‘red flag’ for the department.
BT countered this criticism, claiming it to be “inaccurate and unjustified,” and said “BT was the only company willing to accept the challenging terms on offer and make a significant investment in rural areas. This was at a time when others walked away when they realized easy pickings weren’t to be had.”
BT added that it understands the responsibility of the committee but it was “frustrating” that it “continues to try to pick holes”.
