Labour’s free-for-all broadband plans risk ‘slowing down’ rural connectivity

The group claimed the proposals, which would nationalise BT Openreach – the arm of the company that builds and maintains the cable network – would ‘collapse’ all private sector investment in internet infrastructure.

The alarm was sounded as £500m was wiped off BT’s market value in the wake of Labour’s announcement.

The plan, projected to cost about £20bn, was also attacked by telecoms industry bodies, who claimed other internet service providers such as Virgin Media or TalkTalk would be forced to close, leading to 181,000 job losses.

CLA president Mark Bridgeman said: “We welcome the political focus on broadband from all parties.

“This shows we are finally seeing some ambition to become a world-class, fully-connected digital nation, tackling the digital divide between rural and urban areas, with all the economic and social benefits that brings.

“Of course, everyone likes things for free. But it is not clear how nationalisation will speed up the delivery of full broadband for everyone in the country.

“Under these plans, investment will collapse straight after the election and it will not begin again until the Government is able to complete the nationalisation process.