Rural superfast broadband chaos due BT's 'near monopoly', say MPs
Report says BT allowed to profit from £1.2bn of taxpayers' assets after no other companies won rural superfast broadband contracts
"Plans to roll out superfast broadband in rural areas are in chaos because government mismanagement has given BT a near-monopoly in the market, a report has found.
The report, by the Commons public accounts commitee, came as Labour questioned why Ian Livingston, the head of BT when the contracts were signed, was made a peer and a trade minister in June. Livingston, 49, received shares worth £8.9m when he left BT in June to take up his unpaid government role. He received £2.4m last year in salary, pension and bonuses, as well as £6.6m in shares.
In its report, the MPs said the Department for Culture, Media and Sport allowed BT to profit from £1.2bn of taxpayers' assets after no other companies won a single contract to increase broadband coverage across Britain.
BT has been quick to exploit its position by refusing to reveal costs to civil servants or coverage to local councils, the MPs said. This information would be crucial in guaranteeing that BT's bids are reasonably priced and fair for the public.
As a result, the committee has taken the unusual step of calling for the department to halt payments of a further £250m until ministers and civil servants introduce competition and value for money..."
http://www.theguardian.com/business/2013/sep/26/bt-rural-broadband-monopoly