Digital Region fibre broadband project posts £9.2m losses

South Yorkshire's Digital Region fibre optic broadband project racked up huge losses last year, accounts filed with Companies House have revealed.

According to the Yorkshire Post, the council-led scheme ended the 2010-11 financial year with losses of £9.2 million and the accounts illustrated a level of uncertainty over the future of the initiative.

With building work on the Digital Region fibre optic broadband network almost finished, the publicly-owned company has so far generated returns of just £167,000.

The project has struggled to attract a major internet service provider such as Sky or TalkTalk to make use of its wholesale super-fast broadband infrastructure.

Thea Stein, chief executive of regional development agency Yorkshire Forward, said: "We are committed to seeing Digital Region flourish, but like all start-up businesses it needs support."

Digital Region could be set for further problems as rival network operator BT continues to increase its fibre optic broadband footprint in South Yorkshire.

Last month, the telecoms giant announced a further 40,100 local properties will be connected to the service by the end of this year.