CityFibre Holdings, a specialist in the deployment of ultrafast fibre optic broadband ( FTTH ) ISP networks, has warned that the governments £100m commitment to improve broadband services in up to ten UK cities (here) will not be enough and risks wasting taxpayers' money on "sub-standard" technology.

The government made the announcement of a new Urban Broadband Fund (UBF) on Tuesday, during the Chancellor's (George Osborne) 2011 Autumn Statement. As part of the effort both BT and Virgin Media have pledged to strengthen their urban networks, although how the money itself will be allocated has yet to be announced.


It goes without saying that CityFibre, and others that specialise in truly fibre optic services (e.g. Hyperoptic , Geo Networks etc.), will be watching developments very closely to see whether or not their respective markets could be impacted by the UBF.

Some smaller rural ISPs already feel that public funding has damaged the market by affording an advantage to larger operators and shunning alternatives. Meanwhile others have questioned why urban areas, most of which already benefit from private sector investment, should even need public money.

CityFibre claims that the only way for the UK to have the best broadband network in Europe by 2015 is via healthy market competition and additional funding from a fair allocation of public and private sources.