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Re: [LUG] Possible solution for faster broadband to rural areas


On 29/07/10 10:33, tom wrote:

> You have to realise that when BT was privatised it was done so in such
> away as to make it attractive -

No. Main reason was to get the Liabilities of the nationalised
industries 'OFF THE  Government's Books" - at any cost.

However some  'obligations were left' with no provision to cover cost.
- BT to provide a land line to all businesses and 'occupied households'
in UK (without any ability to amortize the cost of rural/difficult
location by averaging cost against the easy 'cities'. )
- water companies to supply water to same but only to existing (at time
or privatisation) or new.
- Post office to deliver to every business or occupied household.
Government turned down flat the request of BT when a nationalised
company to replace all copper with fibre.
 (an  MP know to me was part of the turn down process due to vast cost
then estimated at 20 to 25 US Billion pounds as unrealistic to take on
as a government debt. But by now we would have had a Korean style pay out.)

PS Virgin pays a bigger share out to shareholders than BT, so it is not
in it  for other than 'business' (i.e. at a profit  but with its large
(person_ owner it can take a longer view to recover costs than BT as he
controls the board. BT has to answer to short term quarterly market
revaluations/computer projections  sell/buy. Virgin is spared most of this.

The only not-for -profit but generally not so efficient way is
nationalisation but it  gets very little re-investment as capital spend
only increases government debt without any return during the four/five
year parliaments of UK

When dealing in PR China I had occasion to meet with the party  staff
manning the ' plans for 25 years / 50 years and 200 years - they plan
for long view as they assume the party will not be displaced from
government; hence things like the three dams project.
Eion MacDonald

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