The cable operator Virgin Media has launched a landmark legal action against Durham County Council over claims it is obstructing efforts to bring ultrafast broadband to thousands of homes.
It has instigated proceedings to force the council to allow it to lay new fibre-optic cables along grass verges without paying “hefty” fees per metre.
The case at the Upper Tribunal (Lands Chamber) is a test of reforms to the Electronic Communications Code introduced last year and designed to speed up the rollout of broadband and mobile network upgrades.
Telecoms operators have become increasingly frustrated by landowners’ demands and ministers sought to tip the balance of negotiations more in their favour to help close the so-called digital divide. The Tribunal can impose terms if an agreement cannot be reached.
Virgin Media aimed to expand its network in County Durham as part of a £3bn investment dubbed Project Lightning that is due to expand cable coverage from around a half to around two thirds of homes by 2020. Next year some 16,000 properties in the area were due to be offered speeds of up to 350 megabits per second, 13 times faster than the local average currently available via the BT network.
Tom Mockridge, Virgin Media’s chief executive, said: “We are disappointed to be taking this action against a Council with whom we initially had a good working relationship. By demanding money for land access Durham County Council is now putting up a broadband blockade to thousands of homes and businesses across the county.”
He accused the Durham County Council of “holding this fibre rollout to ransom” and added: “Durham has no basis for imposing any kind of a land levy in these circumstances and its attitude runs counter to that we have faced from more forward-thinking councils.
“This issue goes wider than the city of Durham. Haggling over land access when we build in a new area slows down broadband rollout and deters investment.”
“It is also an impediment to Government and Ofcom’s ambition for increased fibre rollout and network competition to BT. It’s time rhetoric was put into action to truly break down the barriers to building broadband.”
Durham County Council was not available for comment.