Internet service provider Virgin Media has urged the government not to spend public money on BT to help roll out a high-speed broadband network into rural areas.
On the other hand BT has suggested that the government should not provide financial assistance to those operators which would decline to provide access to rivals on a wholesale basis. It may be noted here that Virgin Media has been refusing to offer its cable platform to rivals on a wholesale basis.
BT said on November 17 that the government was likely to provide more than 800 million pounds in funding to help the roll out of new next-generation broadband services into rural areas where private sector investment couldn't do the needful.
BT also claimed that it could roll out next-generation broadband services to 90 per cent of the country, if the government spent public money its way.
Virgin Media has plans to introduce its new 100Mb/s cable (DOCSIS3) service next month, while BT is preparing to roll out a 100-110Mb/s FTTP service sometime next year.
But, BT's FTTP technology will be able to cover merely 2.5 million households, while Virgin Media's upcoming service is expected to finally reach around half of the UK households. Virgin Media has also slammed others ISPs' for their misleading broadband speeds advertisement, and called them to be more honest about the speeds they actually offer.
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