Govt consults on publicly-owned broadband provider

The introduction of a state-owned broadband provider is among the options being considered by the Government in a new consultation on future funding for its Broadband Delivery UK (BDUK) programme.

The National Broadband Scheme: Market Engagement on Procurement Approach consultation has been launched after the last EC ruling on how state aid can be used to support broadband ended in June last year. In order to commit more public funds to improving provision, the UK must have a new agreement in place with Brussels.

The consultation offers a number of suggestions, including a publicly-owned provider to replace the £1.7 billion BDUK scheme. The plan includes ensuring that networks created with public money will remain open for all providers to use so that a competitive business environment is maintained.

Other options include funding investment for implementing groups to put the broadband infrastructure in place with private sector suppliers and public-private joint ventures; and a model where the implementing bodies build and operate a network which will in future return to public ownership.

The Department of Culture, Media and Sport (DCMS), which is responsible for broadband roll out, said it expects future procurements to be smaller than those seen so far because of the extent of the infrastructure that is already in place. However, it said that projects must be made sufficiently attractive to bidders to encourage competition to deliver them.

A DCMS spokesman said: "The new state aid cover will have different requirements, in particular in regards to offering wholesale access to the new network. We are engaging with the market to ensure that the proposed process can result in successful procurements."

The consultation is open until 24 February 2016.

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