The Independent Networks Cooperative Association (INCA) has called on the government to review its approach for funding the rollout of high-speed broadband nationwide.
Commenting after Geo Networks and Bath & North East Somerset Council walked away from the Broadband Delivery UK process, the organisation has called for a rethink.
Malcolm Corbett, INCA's Chief Executive, explained that economic and competitive concerns are troubling smaller operators, reports ISPreview.co.uk.
"All local authorities are being steered towards a gap-funding model based on BT's business case for rolling out fibre-to-the-cabinet," he stated.
Mr Corbett claimed this could be hindering the development of alternative solutions in the UK.
"Other operators both large and small - Fujitsu Telecom, Gigaclear, Cybermoor, Fibre Options, IFNL, B4RN - are all working on plans that deliver much more fibre-to-the-home – but they all require more investment than is currently on the table," he stated.
If a proportion of that investment is to come from the private sector, there has to be a level playing field, Mr Corbett said.
"The concern is that gap funding automatically favours the incumbent," he added.