BT trying to build broadband monopoly, says TalkTalk exec

David Goldie, the commercial director of TalkTalk, has warned that BT is building a new monopoly over fibre-optic broadband that will leave the UK with second-class infrastructure.

BT Group has pledged to invest £2.5 billion in fibre-optics to connect two-thirds of the UK's 25m homes with super-fast broadband. The telecoms giant also plans to bid for part of a £360m government subsidy to bring broadband to rural areas of England and Scotland.

However, Goldie told The Guardian that BT is "trying to recover the monopoly position that it lost many years ago".

He added: "I don't think that is going to represent good value for the British taxpayer."

Virgin Media and TalkTalk, the UK's second and third largest broadband providers, have already committed to using BT's fibre network after Ofcom ordered the firm to free up access to its infrastructure.

Japanese electronics company Fujitsu has also announced plans to create a fibre-optic broadband network serving 5 million homes in rural Britain, providing an alternative to BT.

However, Fujitsu must first negotiate with BT about access to the firm's ducts and telegraph poles to roll out its own fibre network. BT is expected to soon publish its interim prices for wholesale access, but that process could take more than a year to complete.

"I feel [the pricing process] should already have been sorted," said Goldie. "We are playing in extra time already. Publicly subsidised projects are already being awarded."

BT has already won contracts in Northern Ireland and Cornwall, and is competing against Fujitsu and other bidders for a £120 million project in Cumbria.

Goldie feels that the bidding process for broadband contracts currently favours BT, which will hinder fair market competition and leave Britain with a second-class network.

"Right now BT knows what its costs are but nobody else does," he said.

"I look at it from the point of view of the taxpayer and the market and none of them is well served by having a bidding process that favours one party."

Goldie feels that the success of Britain's fibre network rollout will depend on the actions of the regulators, adding: "It is not in BT's interests to create strong competition, so it will have to be led there by Ofcom."

Olivia Garfield, the chief executive of BT's wholesale arm Openreach, said: "BT has provided reciprocal wholesale access to its fibre network from the outset. This allows other operators to piggyback off our investment, while encouraging competition and the take-up of fibre services to thrive.

"We've also volunteered to provide additional forms of wholesale access via our ducts and poles. We expect to announce revised pricing for such access shortly."