AN influential committee of MPs has blasted the government over the roll-out of rural broadband.

Rural communities were counting the cost after the government failed to promote competition over rural broadband programme, said the Public Accounts committee.

The committee's 50th report – examining the roll-out of the rural broadband programme – was published on Tuesday (1 April).

Committee chairman Margaret Hodge said the government had failed to deliver meaningful competition in the procurement of its £1.2bn rural broadband programme.

This had left BT effectively in a monopoly position, she added.

"The scheme is designed to help get broadband to areas, mainly rural, where commercial broadband infrastructure providers currently have no plans to invest."

"Since our hearing in July last year, when 26 of the 44 contracts to deliver this were with BT, all remaining contracts have now also gone to BT."|

Poor cost transparency and the lack of detailed broadband rollout plans had created conditions whereby alternative suppliers may be crowded out, added Ms Hodge.

"Whilst BT claims it is making further concessions, this is not impacting on rural communities.

"Local authorities are still contractually prevented from sharing information to see if they are securing best terms for the public money they spend.

"Communities can still not access the detailed data they need to understand whether they will be covered by BT's scheme in their area.

"Other broadband providers might be squeezed out of the rural market by BT's actions."

The committee said BT was exploiting its monopoly position to the detriment of the taxpayer, local authorities and those seeking to access high speed broadband in rural areas.

Lack of transparency on costs and BT's insistence on non-disclosure agreements were symptomatic of this exploitation, it said.

Both BT and the government have defended their position.

BT said it respected the role of the committee but added that it felt the committee's criticism of the company was inaccurate and unjustified.

"BT was the only company willing to accept the challenging terms on offer and make a significant investment in rural areas.

"This was at a time when others walked away when they realised easy pickings weren't to be had.

"Claims that BT is a 'monopoly' are simply inaccurate given more than 100 ISPs are offering fibre across BT's open network."

BT said it was delivering value for money and the National Audit Office had acknowledged there were 'robust' processes in place to ensure that was the case.

"Our solution was also cheaper and better than the bids submitted by our competitors – before they walked away - and those terms still apply.

"It is also the case we do not get paid until we have submitted detailed invoices showing the costs we have incurred.

"As for maps, most councils have published coverage maps with our support.

"More detailed data will be released by them in due course once surveys have been completed and we know for sure that we are going to an area."

Communications minister Ed Vaizey said: "Britain has the best superfast broadband of all five leading European economies."

Nationwide broadband rollout was ahead of schedule, with multiple robust safeguards in place to ensure value for money, added Mr Vaizey.

"Thousands of homes and businesses up and down the country are already getting the benefits."

The committee's full report can be downloaded here.