Local councils need to publish super-fast broadband coverage data or risk missing out on vital Broadband Delivery UK funds.
As reported by the Telegraph, the Culture Secretary Maria Miller is prepared to withhold £250 million in funding unless authorities are more transparent about their rollout plans.
Sources close to the Cabinet minister told the news provider that the additional funds - set to come from the BBC licence fee - will go to those councils which are open about where they plan to deploy fibre.
Ms Miller believes this data is vital if smaller broadband providers are to provide an alternative to BT's network in rural areas, and help to extend coverage into 'the final mile'.
Speaking to the Telegraph, a Department for Culture, Media and Sport source said local authorities have been asked to publish their data coverage plans in order to increase transparency.
"The Culture Secretary has made clear that she wants innovative ideas and a wider range of operators for the final ten per cent," they stated.
"There is a £250 million investment to be made and it is only logical that it will be much more difficult for us, and the market."