BT shareholders benefit from taxpayer funding

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I would have thought the Conservatives would endorse a competitive broadband market when they released BDUK (Broadband Delivery UK) in 2011.

However, taxpayer money has helped BT monopolise the broadband market whilst increasing the value of the shares for the shareholders.

I think this is an utter disgrace and I believe the Government need to do more to make the broadband network fairer, cheaper and competitive.

The Government have spent £530 million pound on BDUK for a faster roll-out of fibre optic broadband.

A further £250m of funds was announced on February 25. With local council and EU funding BT have had £1.2 billion of capital assets for free.

Before fibre optic there was huge competition between internet service providers, cutting the price for consumers.

BT are aiming for 66 per cent of UK homes to have access to fibre.

However, because other broadband providers like Sky and TalkTalk only have a slower copper network, BT will be able to monopolise and wipe out competitors.

Internet service providers can pay for the BT fibre service from BTWholesale and sell it to customers as their own.

However, TalkTalk have complained to Ofcom that the margin between the wholesale and retail price is so squeezed that other suppliers cannot sell the product profitably, thus restricting competition.

Competition needs to be increased to give business a boost.

Kirk Kus

Frecheville, Sheffield