News

Government announces £800 million investment in rural broadband rollout

Openreach awarded contracts worth £288 million to connect 97,000 premises.

The government has announced an £800 million investment to provide gigabit-cable broadband to around 312,000 premises in rural areas across Britain.

As part of the government’s Project Gigabit, Openreach has been awarded contracts worth £288 million to connect almost 97,000 homes and businesses in England and Wales.

The Department for Science, Innovation and Technology has said that talks are also already under way to agree further contracts to connect 215,800 more premises across England, Scotland and Wales.

Technology secretary, Peter Kyle, said, “Over the past decade, the UK’s broadband rollout has clearly not happened fast enough and has overlooked too many areas, especially in Scotland and Wales.

“Robust digital infrastructure is essential for growth, productivity and competitiveness and this shortfall not only poses risks to our economic stability, but also entrenches existing inequalities across the country.

“We are fixing this by delivering for hundreds of thousands of homes and businesses up and down the country, focusing on the areas that were not prioritised by the previous government, such as Wales.

“Today marks a significant milestone in delivering on our promise to redouble our efforts to achieve full gigabit coverage by 2030 and lay the foundations for a more inclusive, dynamic and prosperous future for all citizens."

Project Gigabit was originally launched under the previous Conservative administration, but Labour has said this new wave of programming marks a renewed push in the scheme from Sir Keir Starmer’s government.

Digital infrastructure minister, Chris Bryant, said, “Far too many rural citizens and businesses are still stuck with outdated internet infrastructure, not being able to fulfil day-to-day tasks as easily as people living in our towns and cities.

“We have been clear we want to achieve sustained economic growth in every corner of Britain, and this starts by ensuring our communities have the infrastructure they need to thrive.

“This monumental deal with Openreach will make a real difference to communities – such as staying in touch with loved ones or being able to do business no matter where you are.”

Conservative shadow science secretary, Andrew Griffith, said, “Over 80 per cent of Britain now has access to the very fastest internet thanks to the last Conservative government’s £5 billion investment in Project Gigabit, making it easier for millions of families to work and play online.

“Whilst it is good news that Labour is carrying on with the progress we made, we will work to hold them to account to ensure they do not recreate the digital divide they oversaw in Wales.”

Simon Waller, director, carrier and wholesale, at Zayo Europe, said, “The UK's broadband landscape is undergoing a profound transformation. Altnets are stepping up to challenge the incumbents and deliver high-capacity broadband to underserved communities across the nation. These agile and innovative players can accelerate their rollout plans and bring next-generation connectivity to communities that have long been left behind. This movement is commendable but faces significant hurdles. 

“The recent £800 million investment announced by the UK government is a step in the right direction, but we need sustained commitment. Policies that streamline wayleave processes, reduce regulatory barriers, and provide financial incentives for altnet deployment will also be crucial in bridging the digital divide. 

“Collaboration between the government, incumbent operators and altnets is key to creating a level playing field and fostering a competitive broadband market. With the right ecosystem in place, we can create a UK where every community has access to the digital opportunities it deserves.”

Posted under: