Leaked doc shows BT inflating prices?
A document has been leaked which suggests that BT has been inflating prices for the rollout of their fibre network to rural areas, which needs taxpayer-derived funds. The government, thus far, aren't for making a comment on it.
For some added tittle-tattle, the author of the document has apparently been sacked by suits at the Department for Culture, Media and Sport, which is headed up by Cabinet minister Maria Miller (currently holding talks with mobile operators about 4G).
The BDUK document, only meant for internal eyes, appeared to show that there have been huge concerns about BT bumping up charges to see government subsidies from council tax bills rise sharply.
With that, the Conservative-led coalition have £1bn stashed away to help BT get their fibre network to rural Britain. The document allegedly says that BT are using "pseudo wholesale" numbers to balloon costs, which of course, is denied by BT.
They say: "BT is winning competitive BDUK tenders precisely because it is committing extra funds to improve broadband access. These funds are in addition to our commercial investment of £2.5bn and so it is ludicrous to suggest that we are trying to pass on the full cost of deployment to our public sector partners."
The Telegraph have reported that that Public Accounts Committee chair Patricia Hodge got involved and wants some answers about BT's pricing methods and has urged the National Audit Office to investigate.