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A panel of MPs has accused the government of mismanaging the UK's rural broadband rollout.

In a new report, the Commons Public Accounts Committee (PAC) raised concerns over the restrictive tender process, which has left BT as the sole bidder for local infrastructure projects.

The PAC said BT had "exploited its quasi-monopoly position" as the UK's main broadband provider, having claimed all 26 of the projects awarded so far.

It has recommended that the Department for Media, Culture and Sport (DCMS) withholds additional public funding for the broadband rollout post-2015 until it has developed approaches to secure "proper competition and value for money".

The MPs have also accused the government of making "wildly inaccurate" assumptions about the capital contributions of the public and private sectors to the project in its 2011 business case.

According to the PAC, BT is committing £207 million less in capital funding than the government originally expected, while local authorities are investing £236 million more.

"When negotiating levels of private sector investment, the DCMS should push for contributions that take account of the long-term value of the assets to the supplier," the MPs urged.

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