BBC cuts to help finance super-fast broadband

Up to £830m will be taken from the BBC licence fee over the next seven years to help finance the expensive task of building superfast broadband networks in rural areas.

George Osborne, chancellor, announced in his comprehensive spending review the location of four pilot projects that ministers hope will serve as models for how the public and private sectors should collaborate to build high-speed broadband networks in rural Britain. The projects will be in the Highlands and Islands, North Yorkshire, Cumbria and Herefordshire. Broadband infrastructure is widely seen as a key driver of competitiveness and innovation, and Mr Osborne said the government's plans should help nurture creative industries such as advertising and media. Ministers are particularly anxious to avoid superfast broadband networks being confined to towns and cities, and are hoping that companies including BT can be persuaded to expand their high-speed infrastructure to rural areas by tapping public money. BT, the UK's leading fixed-line phone company, has repeatedly insisted it cannot cover the cost of extending its urban-focused high-speed network to rural areas without some public funds.