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South Yorkshire UK Digital Region Superfast Broadband Project Lost £9m in 2011

Posted: 17th Jan, 2012 By: MarkJ
yorkshire uk broadband internet mapdigital region ukThe controversial Digital Region network, which cost £100 Million of public money to setup and aims to put 97% 80% (scaled back from 97%) of homes and businesses in South Yorkshire (UK) within reach of a superfast broadband ( FTTC ) service by the middle of 2012 (separate from BT), is still in serious trouble after its latest accounts revealed a loss of over £9.2m in 2011 (plus revenue of just £167k!).

Similar concerns about the networks future (here and here) were raised last year, which caused some to anticipate that it could either be sold or collapse. So far that hasn't happened but clearly the situation remains largely unresolved.

Crucially the Digital Region network, which is offered on an open access wholesale basis, has still not been able to attract any serious interest from major UK ISPs (e.g. O2 , TalkTalk etc.). Poor advertising has played a part and growing competition from similar BT services, which will soon advance beyond the projects own deals, have all conspired to hinder consumer uptake.

Yorkshire Forward's CEO, Thea Stein, said (Yorkshire Post):

"The decision was made with the local authorities that Digital Region might need more money. Clearly the discussion has been had with central Government, as all Yorkshire Forward’s funding ultimately comes through them.

We are committed to seeing Digital Region flourish, but like all start-up businesses it needs support. It’s important to state this is a guarantee – the hope is they will not need to draw it down."

So far Digital Region, which is beginning to look like the broadband equivalent of Greece, has managed to avoid defaulting on its loans and the extra £4m pledged by Yorkshire Forward should help to keep the lights on.. at least until the end of 2012.

Meanwhile the scheme is hunting for yet another CEO after David Carr abandoned the sinking ship departed his £100,000-a-year post in December 2011. Plans to extend the network into rural areas now look highly unlikely to materialise, at least not unless a miracle happens and the scheme turns a real profit.
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