Competition commission investigated as only two companies were in the bidding process

EU approves plans to subsidise rural broadband

The European Union will give the green light the Government’s Broadband Delivery UK scheme, which will bring high speed internet to rural areas.

According to Tech Week Europe, the competition commissioner Joaquin Almunia has signalled that he is happy for the Government to provide state funding amounting to £350 million in order for the scheme to go ahead.

The Broadband Delivery UK programme is designed to make sure that around 90 per cent of the UK population has access to high speed broadband by 2015.

However, questions were raised when it transpired that only two companies – BT and Fujitsu – had signed up to a framework agreement. Apparently this makes it easier for councils to carry out the tendering process. They can use other providers but they must set up their own procurement procedures and get Government backing for them.

Perhaps unsurprisingly, BT has thus far won every single bid.

Want to receive up-to-the-minute tech news straight to your inbox? Then click here to sign up for the completely free PCR Daily Digest and Newsflash email services. You can also follow PCR on Twitter and Facebook.

Check Also

BT Wholesale launches WHC Teams Direct Connect for small business customers

BT Wholesale’s launch of WHC Teams Direct Connect, gives businesses the ability to access external …