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Small operators plan to challenge BT broadband subsidies
Small broadband operators could take legal action against local councils if Broadband Delivery UK money is awarded to BT.
Industry blog Br0kenTeleph0n3 spoke to the managing directors of two small broadband providers who suggesting giving taxpayers' money to BT would be in violation of state subsidy rules.
NextGenUs, which is installing a hybrid fibre-wireless network in Cumbria, is among the companies that would consider a legal challenge.
Managing director Guy Jarvis told the website: "I can confirm that NextGenUs will challenge any Cumbria County Council award of taxpayers' money to BT."
He said the firm would do so "on the grounds that the market, without any public subsidy, is either delivering super-fast service in Cumbria or has firm plans to so do".
Mr Jarvis' comments were echoed by Bill Lewis, managing director of Sussex-based broadband provider Kijoma Networks.
He told Br0kenTeleph0n3 that he has already challenged West Sussex County Council over its "blatant pro-BT stance" in recent years.
According to the website, other operators such as Rutland Telecom and Vtesse Networks could join forces to contest awards under the BDUK procurement rules.
BDUK is the delivery vehicle tasked with distributing the £530 million allocated by the government to the super-fast broadband rollout.
In November last year, Geo Networks announced its withdrawal from the BDUK framework after complaining that access to BT's infrastructure was too expensive for smaller operators.
Chief executive Chris Smedley said BT's model for duct and pole sharing - known as physical infrastructure access (PIA) - was too restrictive.
For a price, PIA allows network operators to connect to BT's infrastructure, where they can install sub-ducts in BT's ducts and attach equipment to poles owned by the company.
"These inadequacies of the current PIA product are fatal to infrastructure competition," commented Mr Smedley.