Fibrestream boss gives mixed reaction to rural broadband cash

The chief executive of Fibrestream has expressed his hope that the government's recently-announced rural broadband funding will help the deployment of fibre to the home (FTTH).

Guy Jarvis said the £20 million pledged by the Conservative-Liberal Democrat coalition to boost internet access in remote parts of the UK is "good news", provided it helps to encourage the rollout of FTTH, reports Computer Weekly.

But he warned the money could actually have a negative effect if it is not used correctly.

"If the promise of funding serves to delay matters, create uncertainty and generally chill and distort the market, then it's a bad idea," Mr Jarvis remarked.

Environment secretary Caroline Spelman unveiled the rural broadband plans last week, explaining the cash will particularly go towards upland communities.

She insisted the measure will help to make hill farmers become more competitive and benefit from a range of opportunities to expand their business.

"They will also help rural communities to thrive," Ms Spelman added.