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Virgin and BT in broadband row

Virgin and BT in broadband row

The government risks “sleepwalking into another monopoly” in the way it is allocating funds for rural broadband, shadow business minister Chi Onwurah has warned.

The Labour MP says she plans to tell the House of Lords communications select committee on Tuesday that the current system is “skewed towards BT”.

Rival Virgin Media has already accused the government of subsidising BT.

BT says that others are welcome to bid for funds.

Open networks

Counties around the UK have been allocated a share of £530m of government cash. The aim is for them to match the funding and appoint firms to roll out super fast networks in their areas.

But the process has been slow. So far, just two contracts have been awarded – in Lancashire and Rutland. Both have gone to BT.

BT rivals Fujitsu and Cable & Wireless have withdrawn from the process in many areas – leaving the telecoms firm as sole bidder in some places.

Read More/Source: BBC News

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