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UK.GOV consults on BDUK and “state aid”

Posted by Sam Frances on Friday, January 29th, 2016 at 16:33

The UK government is consulting on the future of the Broadband Delivery UK (BDUK) scheme for subsidising broadband roll-out.

BDUK is seeking input from broadband operators, local authorities and devolved administration, in order to inform a new “state aid” agreement with the Commission, which would allow continued public subsidy to broadband roll-out. The previous “state aid” decision expired at the end of June.

A number of funding models are under consideration, including:

  • Investment Gap Funding, similar to the current model.
  • Public private partnership, “a Joint Ventures (“JV”) or Special Purpose Vehicle (“SPV”) with a private sector supplier or suppliers”
  • Concession to Build-Operate-Transfer, where “an Implementing Body lets a concession contract to build, operate and generate revenues from a network, which returns to public ownership at the end of the contract”
  • Public sector owned supplier

For more information, see: National Broadband Scheme – Market Engagement – GOV.UK

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