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July 11, 2012

Fujitsu pull out of bidding for Cumbria broadband funds leaving just BT

Japanese tech firm Fujitsu have pulled out of bidding for the superfast broadband delivery in Cumbria leaving only BT left to bid for the funds.

Fujitsu believe they need to be able to reach 1 million customers for it to make economic sense for them to invest, they need this number to be then able to market their network to the likes of Virgin Media.

The governments “Broadband Delivery UK” scheme¬† was set up to help fund the deployment of high speed broadband networks in rural areas of the country. There has been lots of criticism about the funding process for BDUK funds by other providers as it is just BT & Fujitsu who were whittled down to be able to put in tenders for the funds from an original 9 suppliers who had started out wanting to be involved.

Fujitsu themselves have only bid for 2 areas so far, Cumbria (which they have subsequently pulled out from) and North Yorkshire which is expected to see BT win the funds for anyway.

In June, Cumbria Country Council rejected bids from both BT & Fujitsu and gave them until September this year to provide a better proposal for, BT are now sitting in a far prettier position since they are left as the only contender for the contract now which is expected to be worth around £40 million when private investment has also been accounted for too.

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