Fujitsu withdraws from Cumbrian broadband race with BT

Technology giant ditches broadband bid because of cost concerns.

Broadband speed

Fujitsu has dropped plans to build a rural broadband network in Cumbria, leaving incumbent BT as the sole bidder.

The decision comes after Cumbria County Council rejected bids from both BT and Fujitsu because their plans did not fully satisfy the area's internet requirements.

The Japanese technology giant said it would have required a market of around a million customers for it to break even on the deal.

"We withdrew from Cumbria because we cannot currently see a clear path towards a mass market that is required to attract leading retail service providers," said Fujitsu chief executive, Duncan Tait, in a statement to the Financial Times.

He also revealed the firm has not ruled out bidding for other broadband contracts throughout the UK.

"We continue to monitor the market place and see where we can get this to make sense. We will look at each on its own merits and see if there is a way to make it work and get to the scale we need for our anchor tenants," he added.

Communications minister, Ed Vaizey, recently confirmed the bid to build rural broadband was a two-horse race between BT and Fujitsu.

Fujitsu has bid for two regional tenders, Cumbria and North Yorkshire. It is thought BT will now win both deals.

Fujitsu initially planned to build a 1Gbps fibre optic to the home (FTTH) broadband network that could have reached five million UK homes and businesses in rural areas by 2016.

To accomplish this, the firm would have needed almost the entire Broadband Delivery UK budget of 530 million.

Featured Resources

2021 Thales access management index: Global edition

The challenges of trusted access in a cloud-first world

Free download

Transforming higher education for the digital era

The future is yours

Free download

Building a cloud-native, hybrid-multi cloud infrastructure

Get ready for hybrid-multi cloud databases, AI, and machine learning workloads

Free download

The next biggest shopping destination is the cloud

Know why retail businesses must move to the cloud

Free Download

Recommended

Fujitsu Primeflex for Nutanix Enterprise Cloud review: Nutanix in a jiffy
Server & storage

Fujitsu Primeflex for Nutanix Enterprise Cloud review: Nutanix in a jiffy

19 Jul 2021
Fujitsu ScanSnap iX1400 review: Slick and simple scanning
peripherals

Fujitsu ScanSnap iX1400 review: Slick and simple scanning

29 Apr 2021
Fujitsu Server Primergy RX1330 M4 review: One cool customer
Server & storage

Fujitsu Server Primergy RX1330 M4 review: One cool customer

15 Mar 2021
Fujitsu Primeflex for VMware vSAN Appliance review: A piece of cake
Server & storage

Fujitsu Primeflex for VMware vSAN Appliance review: A piece of cake

2 Feb 2021

Most Popular

Best Linux distros 2021
operating systems

Best Linux distros 2021

11 Oct 2021
Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans
Laptops

Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans

11 Oct 2021
Veritas Backup Exec 21.3 review: Covers every angle
backup software

Veritas Backup Exec 21.3 review: Covers every angle

14 Oct 2021