By: MarkJ - 28 November, 2011 (8:17 AM) - Score: 1776 - Fixed Line Broadband
scotland uk regions mapfibre_optic_broadband_internet_cable.jpgScotland's Highlands & Islands Labour MSP, Rhoda Grant, has warned that a lack of public money appears to be turning the Broadband Delivery UK (BDUK) offices bidding process into a one horse race with BT as the only interested party of any serious scale.

Grant claims that she is "deeply concerned" to learn that both Cable & Wireless (C&W) and Fujitsu have now "withdrawn" their tenders from the bidding process for public money. Geo also left the process last week (here), although it's unclear whether they were bidding for the H&I region. There is also some doubt about whether or not Fujitsu even tabled a bid.

Labour MSP, Rhoda Grant, said:

"I am deeply concerned to learn than a second bidder, Cable & Wireless, has withdrawn its tender for the Highlands & Islands broadband pilot. This follows Fujitsu backing out last week due to the lack of public money being invested in the project.

This pilot is of vital importance to every community throughout the Highlands & Islands and it is essential that more public money is invested in this project – so far only 10% of the estimated costs have been secured.

Westminster is presently investing more in broadband in Scotland than our own Scottish government is and this needs to change. That said, I am appealing again to Westminster to release the remaining money it has set aside for rural broadband (£167m) but I am also calling on our government at Holyrood not only to introduce its broadband action plan with immediate effect but also to urgently increase the amount it is investing in Scotland’s digital future."

A spokesman for Fujitsu's partner, Virgin Media UK, informed ISPreview.co.uk that they "don't think Fujitsu was ever bidding for H&I". However the cable giant did confirm that "the withdrawal of C&W does leave just BT interested in this area".

It should be clarified that Fujitsu are certainly still involved in BDUK, just not the H&I region. It's unclear how this will impact their plans to reach 5 Million homes in rural areas with a 1Gbps capable FTTH broadband network by 2016 and act as an alternative to BT's national platform.

The government's BDUK office recently allocated £68.8 Million of its £530m budget to help the Scottish Government bring superfast broadband services (24Mbps+) to 90% of "people in each local authority area" by March 2015. The money now forms part of Scotland's £144.3 Million Digital Strategy fund, although its national broadband plan won't be revealed until early 2012, which puts them more than a year behind England and Wales.

UPDATE 09:37am

Fujitsu have just been in touch to confirm that, "It is only the Highlands and Islands bid that we have withdrawn from as the sums simply did not stack up."
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Comments: 14

asa logowirelesspacman
Posted: 28 November, 2011 - 10:25 AM
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Will the last person to withdraw (excluding BT of course) please turn out the light.
asa logoSledgehammer
Posted: 28 November, 2011 - 11:05 AM
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Well it's no big surprise is it. Why didn't the government just give BT the whole £530mil in the first place. Save all the wasted time and effort put in by countless people involved with this disaster of a scheme.
asa logodragoneast
Posted: 28 November, 2011 - 11:34 AM
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Hold yer horses . . . the race has hardly started yet and EU laws require competitive bids to get a wad of state cash for some very good reasons:
- tender against a known specification
- demonstrate value for money
- audit trail.
They're not bad objectives and no-one has yet come up with a better mechanism for achieving them. There's an old saying about do in too much haste and repent at leisure, and plenty of experience of that in the broadband arena. And if the process keeps BT on its toes then what's wrong with that?
asa logocyberdoyle
Posted: 28 November, 2011 - 1:10 PM
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Keeps BT on its toes? haha. They are laughing all the way to the bank. All the process does is make a mockery of our systems, and hoodwinks our councils.
A few decent pilots would have put the cat amongst the pigeons and given bt a run for the money, but alas, we have plenty of leisure to repent as we watch all the digital switchover money go into the copper pot. for infinity. And the whole job will be to do again as millions are left on the wrong side of the digital divide and the world laughs at the snail.
asa logoMr C
Posted: 28 November, 2011 - 8:17 PM
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So another fine example of the evil monopoly BT being the only one willing to invest their own money (i.e match funding) in RURAL broadband.
Im sure the residents will be devastated to be receiving up to 80meg next year (my line stats say 100megplus possible) from the "copper cabal".
Fuji withdrawal speaks volumes here. The money should have been given to Openreach in the beginning with a proviso of minimum speed per line (seen picks of bt pole mountable mini dslams which would suit rurals and made such a thing possible).
asa logoDTMark
Posted: 29 November, 2011 - 2:13 AM
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I'd be fairly devasatated if funding meant our cabinet could be enabled and that's how the money - partly my money - was being spent. Since we're about 1.2km of [probably aliminium] wire from said cabinet we might hit the dizzying heighs of maybe 10Mbps, just a bit faster than my 3G connection. And that's it - all "futureproofed". Not really. Wi-Fi might have been better. Get the right technology for the right area.

Not interested in "up to 80Mbps". I have that already. Interested in superfast broadband, though. It's the minimum speeds per line property which are at the very heart of this.
asa logoDTMark
Posted: 29 November, 2011 - 2:18 AM
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... and on that note, recognising the commercial aspects - wouldn't Wi-Fi and repeaters be the right solution for the Highlands, indeed many areas where the population density is so low and spread disparately over large areas - the costs of running FTTP or any fixed lines to all those properties are so great, it's just never going to be realistic. I think there are some areas where the problem is borderline intractable and that might be one of them. Where the the Wi-Fi providers' bids?
asa logoDeduction
Posted: 29 November, 2011 - 2:22 AM
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Said it from the start, for anyone to dare say BT isnt a monopoly now only makes them sound more stupid than they did originally.
asa logoSomerset
Posted: 29 November, 2011 - 12:44 PM
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Deduction - is Transco a monopoly?
asa logoDeduction
Posted: 29 November, 2011 - 3:44 PM
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Who cares, go ask on some gas website.
asa logoAndrea Rutherford
Posted: 29 November, 2011 - 6:31 PM
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Please note, there are currently two bidders for the H&I Next Generation Broadband project:
British Telecommunications PLC
Commendium Ltd

http://www.hie.co.uk/about-hie/working-with-hie/procurement.html
asa logoBerks
Posted: 30 November, 2011 - 12:38 AM
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As said before BT will likely win most of the bduk tenders as they are very keen to invest to maintain their market lead in rural areas.

Commendium will proably not be able to offer the same amount of funding as bt but will have to wait and see who is awarded the tender.
asa logoDeduction
Posted: 30 November, 2011 - 2:59 AM
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If they are so keen to invest why are they even bidding for BDUK money in this area?
asa logoSomerset
Posted: 1 December, 2011 - 8:51 AM
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Does only supplier mean monopoly when others free to set up?



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