Virgin Media and BT in broadband subsidy row
This article, suggest that BT is likely to mop up the vast majority of BDUK funding because of its ability to flex its muscles compared to other potential suppliers. If this does happen one will have to reflect very hard on the true benefit of what may become just a big public subsidy to a private service provider. I may be wrong – only two contracts have been agreed by local authorities and telecoms providers since the funding was announced and both have gone to BT.
According to the article Fujitsu and Cable and Wireless have withdrawn from the competition in many areas leaving just one provider. Too little has happened at this stage to make a fair judgement however….watch this space for further updates on how all this pans out over the next few months. According to the article Virgin Media have already pre-judged the outcome – Their Chief Operating Officer is reported as saying: “….we must accept that providing the vast majority of available public funding to an incumbent is not in the UK’s best interests.”