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Broadband Delivery UK (BDUK) funding will deliver super-fast broadband access to an extra 1.8 million homes, an analyst firm has claimed.

Point Topic believes the £530 million distributed by the government body will enable many households to upgrade their connectivity.

Without public funding, they would be unlikely to see a network upgrade in their area, the company claimed.

To date, private sector broadband providers have appeared reluctant to roll out fibre services in areas with low population densities.

With fewer potential customers to target, the scope for profitability is lower for such firms, making a commercial case for investment more difficult to establish.

The government hopes its £530 million investment in rural broadband will ensure universal 2Mb access, and also allow 90 per cent of the population to benefit from super-fast speeds by 2015.

Approval for state aid funding was recently granted by the European Commission, allowing county councils to proceed with their BDUK-funded broadband rollouts.

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