Non-disclosure agreements in BTs contracts to provide rural broadband have been criticised by MPs sitting on the Public Accounts Select Committee (PAC).

The PAC said that a lack of transparency made it difficult for the government to operate a competitive procurement process and ensure that it was properly informed for future broadband infrastructure tenders.

The members of the PAC said that non-disclosure agreements had: “allowed poor cost transparency and lack of detailed broadband rollout plans to create conditions whereby alternative suppliers may be crowded out”.

The committee chairman, Margaret Hodge, said: “we see the lack of transparency on costs and BT’s insistence on non-disclosure agreements as symptomatic of BT exploiting its monopoly position to the detriment of the taxpayer, local authorities and those seeking to access high speed broadband in rural areas.”

A BT spokesman claimed that the PAC’s comments were unfair being that “BT was the only company willing to accept the challenging terms on offer and make a significant investment in rural areas. This was at a time when others walked away when they realised easy pickings weren’t to be had. Claims that BT is a monopoly are simply inaccurate given more than 100 ISPs are offering fibre across BT’s open network.”

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