Did British Telecom Inflate Rural Broadband Costs to Win Higher Subsidies?

The U.K. government is going to subsidize the national broadband network in rural areas by giving £1billion to BT to connect about 12 million households in the countryside. Half of the money is coming from the U.K. government, and half from local taxes.

However according to a leaked document purportedly from a briefing for officials at the Culture, Media and Sport department, one expert at least charges that BT is overcharging, using a mark up of up to 80 percent.

BT denies the charge, of course.