This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/technology-24227096

The article has changed 9 times. There is an RSS feed of changes available.

Version 1 Version 2
Rural broadband rollout attacked by committee of MPs Rural broadband rollout attacked by committee of MPs
(about 7 hours later)
The way broadband has been rolled out to rural UK areas has been criticised in a damning report by MPs.The way broadband has been rolled out to rural UK areas has been criticised in a damning report by MPs.
The Commons Public Accounts Committee (PAC) said the government had failed to ensure proper competition by awarding all 26 rural broadband contracts to BT.The Commons Public Accounts Committee (PAC) said the government had failed to ensure proper competition by awarding all 26 rural broadband contracts to BT.
It accused the Department for Culture, Media and Sport of giving away public money without proper checks.It accused the Department for Culture, Media and Sport of giving away public money without proper checks.
The government defended the process as fair and BT said it was "disturbed" by a report that was "simply wrong".The government defended the process as fair and BT said it was "disturbed" by a report that was "simply wrong".
The Department for Culture, Media and Sport said in a statement: "We put in place a fair commercial process and encouraged different suppliers to bid.The Department for Culture, Media and Sport said in a statement: "We put in place a fair commercial process and encouraged different suppliers to bid.
"We are disappointed that the PAC fails to recognise that thousands of rural premises who have never had a decent broadband supply are now getting one, something that is vital for farmers, rural businesses and all those who live outside major cities.""We are disappointed that the PAC fails to recognise that thousands of rural premises who have never had a decent broadband supply are now getting one, something that is vital for farmers, rural businesses and all those who live outside major cities."
Subsidy potSubsidy pot
Making sure that those living in the countryside get broadband speeds comparable to those living in towns and cities has long been something the government has grappled with.Making sure that those living in the countryside get broadband speeds comparable to those living in towns and cities has long been something the government has grappled with.
Commercial firms such as Virgin Media and BT see little profit in rolling out services to areas with few people living in them.Commercial firms such as Virgin Media and BT see little profit in rolling out services to areas with few people living in them.
So, as an incentive, the government provided a subsidy pot of £230m, with an extra £250m available after 2015, and awarded contracts on a county-by-county basis. Each county also contributed funds to bring superfast broadband to their areas.So, as an incentive, the government provided a subsidy pot of £230m, with an extra £250m available after 2015, and awarded contracts on a county-by-county basis. Each county also contributed funds to bring superfast broadband to their areas.
But only Fujitsu and BT entered the bidding competition, with Fujitsu later withdrawing.But only Fujitsu and BT entered the bidding competition, with Fujitsu later withdrawing.
BT has so far been chosen in 26 counties and is expected to win the 18 remaining contracts.BT has so far been chosen in 26 counties and is expected to win the 18 remaining contracts.
The company has said it will commit £2.5bn to the project.
"The Department for Culture, Media and Sport's design of the rural broadband programme has failed to deliver the intended competition for contracts, with the result that BT has strengthened its already strong position in the market," summarised the PAC report."The Department for Culture, Media and Sport's design of the rural broadband programme has failed to deliver the intended competition for contracts, with the result that BT has strengthened its already strong position in the market," summarised the PAC report.
It said that its contract terms were "overly generous" to BT and did not "promote value for money".It said that its contract terms were "overly generous" to BT and did not "promote value for money".
It also accused the department of failing to check that BT's bids were reasonably priced and said there had been "wildly inaccurate" estimates of costs.It also accused the department of failing to check that BT's bids were reasonably priced and said there had been "wildly inaccurate" estimates of costs.
"Local authorities are contributing over £230m more to the programme than the department assumed in its 2011 business case and BT over £200m less, yet BT will ultimately benefit from £1.2bn of public funding," the report said."Local authorities are contributing over £230m more to the programme than the department assumed in its 2011 business case and BT over £200m less, yet BT will ultimately benefit from £1.2bn of public funding," the report said.
'Transparent from start''Transparent from start'
BT was also criticised in the report for failing to provide local authorities with full information about where exactly it would roll out superfast broadband services, which in turn hampered rivals from drawing up alternatives.BT was also criticised in the report for failing to provide local authorities with full information about where exactly it would roll out superfast broadband services, which in turn hampered rivals from drawing up alternatives.
It was also criticised for including a clause in its contract that prevented the local authority it was dealing with from disclosing the costs involved to other authorities negotiating contracts.It was also criticised for including a clause in its contract that prevented the local authority it was dealing with from disclosing the costs involved to other authorities negotiating contracts.
Such a lack of transparency meant that the company "exploited its quasi-monopoly position" to limit access to both the wholesale and retail market "to the detriment of the consumer", concluded the report.Such a lack of transparency meant that the company "exploited its quasi-monopoly position" to limit access to both the wholesale and retail market "to the detriment of the consumer", concluded the report.
In response BT said it was disturbed by the report, "which we believe is simply wrong and fails to take on board a point-by-point correction we sent to the committee several weeks ago".In response BT said it was disturbed by the report, "which we believe is simply wrong and fails to take on board a point-by-point correction we sent to the committee several weeks ago".
It added: "We have been transparent from the start and willing to invest when others have not.It added: "We have been transparent from the start and willing to invest when others have not.
"It is therefore mystifying that we are being criticised for accepting onerous terms in exchange for public subsidy - terms which drove others away.""It is therefore mystifying that we are being criticised for accepting onerous terms in exchange for public subsidy - terms which drove others away."
It denied that it had failed to deliver value for money for the taxpayer and said that, even with the public subsidies, it would take it 15 years to pay back its investment in rural broadband.It denied that it had failed to deliver value for money for the taxpayer and said that, even with the public subsidies, it would take it 15 years to pay back its investment in rural broadband.
"Rolling out fibre is an expensive and complex business," it said."Rolling out fibre is an expensive and complex business," it said.
The report recommended that the government should, as a matter of urgency, publish BT's detailed roll-out plans so that other suppliers could offer services to the final 10% of the population that would not be covered under current plans.The report recommended that the government should, as a matter of urgency, publish BT's detailed roll-out plans so that other suppliers could offer services to the final 10% of the population that would not be covered under current plans.
'EU failures''EU failures'
It also said that the DCMS should not spend any more money until "it has developed approaches to secure proper competition and value for money".It also said that the DCMS should not spend any more money until "it has developed approaches to secure proper competition and value for money".
In 2011, then Culture Secretary Jeremy Hunt announced that 90% of premises in every local authority area of the UK should have access to internet speeds above 24 megabits per second by May 2015, with a minimum of 2Mbps for others.In 2011, then Culture Secretary Jeremy Hunt announced that 90% of premises in every local authority area of the UK should have access to internet speeds above 24 megabits per second by May 2015, with a minimum of 2Mbps for others.
The process has suffered from huge delays and is now due to be completed in 2017, nearly two years later than originally planned.The process has suffered from huge delays and is now due to be completed in 2017, nearly two years later than originally planned.
But, according to Ovum analyst Matthew Howett, the delays were more down to the EU's failure to approve the scheme rather than to the UK government.But, according to Ovum analyst Matthew Howett, the delays were more down to the EU's failure to approve the scheme rather than to the UK government.
"The challenges of deploying to the most rural and remote areas of the UK shouldn't be underestimated and you have to wonder whether there are many providers other than BT who would've been able to overcome some of the engineering challenges," he said.""The challenges of deploying to the most rural and remote areas of the UK shouldn't be underestimated and you have to wonder whether there are many providers other than BT who would've been able to overcome some of the engineering challenges," he said."
He added that it was "almost impossible" to point to a public funded broadband delivery model from elsewhere that had done a better job.He added that it was "almost impossible" to point to a public funded broadband delivery model from elsewhere that had done a better job.
"If we could roll out rural broadband using reports, inquiries and investigations, the UK would probably have the fastest broadband in the world," he said."If we could roll out rural broadband using reports, inquiries and investigations, the UK would probably have the fastest broadband in the world," he said.