UK will miss 2025 target for full-fibre broadband rollout, MPs warn
January 8, 2021, 12:13 pm

UK will miss 2025 target for full-fibre broadband rollout, MPs warn

An engineer works on a full-fibre broadband link on Grimsay in the Outer Hebrides.

Government failures will leave thousands of rural homes with slow broadband, spending watchdog says

Boris Johnson’s promise to deliver nationwide “turbocharged” broadband by 2025 will be missed because of a catalogue of government failures, parliament’s spending watchdog has concluded.

In a timely report released on Friday as many children struggle to gain access to remote learning during lockdown, the public accounts committee has criticised the Department for Digital, Culture, Media and Sport (DCMS) for failing to make any “meaningful progress” in delivering policies or legal changes to achieve a rapid rollout of gigabit broadband.

As a result, thousands of homes and businesses, particularly in rural areas, could be left with slow broadband for many years, MPs warned.

The report has been released amid growing concerns that a “digital divide” is leaving many pupils adrift during the coronavirus pandemic. Ofcom estimates that more than 880,000 children live in a household with only a mobile internet connection.

Johnson first proposed a 2025 target for full-fibre broadband in June 2019 as he stood to become leader of the Conservative party. In a column for the Daily Telegraph, he wrote that a standing promise by Theresa May to introduce superfast broadband by 2033 was “ laughably unambitious”.

“If we want to unite our country and our society, we should commit now to delivering full fibre to every home in the land not in the mid-2030s – but in five years at the outside,” he wrote.

In the 2019 general election, the Conservatives pledged to roll out gigabit broadband connectivity across the entire country by 2025. But in November 2020, the government rowed back on the target and said it was aiming for 85% instead.

Friday’s report says that Johnson’s original target was unachievable and doubts that the 85% figure can be met within five years – a delay that could leave businesses and homes with slow broadband.

“We are increasingly concerned that those in rural areas may have to pay more and may reach gigabit broadband speeds late.

“Given the impact of Covid-19, the department must do more to protect those with limited access to the internet.

“We remain unconvinced that if and when rural users finally do get gigabit broadband they will enjoy the same choice of service provider and the same protections as their urban counterparts,” the report said.

The committee criticised the government for not allocating three-quarters of the £5bn total to roll out gigabit broadband until after 2024-25.

“ is still developing its £5bn programme to subsidise rollout to the hardest to reach 20% of the UK’s 31m premises and could not tell us when it intends to deliver major milestones, such as the letting of contracts,” the report concluded.

Senior civil servants in DCMS were also accused of being vagueabout the potential costs and delays from removing telecommunications equipment supplied by Huawei, which must be stripped from the UK’s 5G network by 2027 due to security risks.

The Labour MP Meg Hillier, the chair of the public accounts committee, said that the country’s third lockdown has highlighted the government’s failure to get to grips with its pledged broadband rollout.

“Due to a litany of planning and implementation failures at DCMS, those promises are slipping further and further out of reach – even worse news for the ‘rural excluded’ who face years trying to recover with substandard internet connectivity.

“Government cannot allow digital inequality to continue to compound and exacerbate the economic inequality that has been so harshly exposed in the Covid-19 pandemic,” she said.

A DCMS spokesperson said the department disagreed with the report and claimed it contained some inaccuracies.

“Gigabit capable broadband is being rolled out rapidly – from one in 10 households in 2019 to one in three households today. We expect that half of all households will have access to gigabit speeds by the end of this year, and the UK is deploying at a faster build rate than comparable countries.

“This is evidence of the progress we have made to support the private sector and reduce barriers to roll out. We will take further rapid steps this year alongside the investment being made as part of our record £5bn UK Gigabit Programme, which will focus on ensuring the hardest to reach 20% of the country is not left behind,” the spokesperson said.

source: Rajeev Syal

Levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.