Rural broadband roll-out is 'train crash waiting to happen'

Rural broadband roll-out is 'train crash waiting to happen'

Rural broadband roll-out is 'train crash waiting to happen'

Looking into leased lines as an alternative to mainstream broadband providers in remote areas, could be the way forward, as reports surface that the Government roll-out of rural high speed broadband is set to be heavily criticised by the public spending watchdog.

The Government is investing £1 billion in bringing the high speed network to around 12 million rural homes but it is understood the National Audit Office (NAO) is preparing a report showing that the scheme is not providing value for money.

A source told The Daily Telegraph the roll-out is “a train crash waiting to happen and the train appears to be accelerating rather than slowing down at the moment”.

The insider added: “We will either end up with some sort of meltdown in the next year or so or there will be significant cost in the next parliament to try and unpick it.”

The NAO began its investigation last autumn after allegations that BT could be overcharging for the connections, which BT strongly denied. BT currently provides the majority of remote connections but a number of local authorities have expressed concerns that they are contractually forbidden from comparing the prices it charges them.

The Independent Networks Cooperative Association believes Government policy has prevented smaller suppliers from bidding to carry out the work.

Spokesman Malcolm Corbett said: “There are quite a number large and small independent, very capable UK companies which are very willing to help the Government deliver its target. But currently they are completely excluded and it seems mad, a real shame, and this is very unlike other parts of Europe.”

Margaret Hodge, who chairs the Public Accounts Committee, said that BT would be asked to give evidence about the NAO report next month and an enquiry would “definitely” be held.

BT said the company could not comment on leaks from the NAO report before the final version is published.

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