Tees Valley Announced as One of First Areas in Country to Benefit from Gigabit Broadband(1000mbps)

How does this work? Does the government give the ISP's the money and they decide what prices they charge us?
The government have been giving money to Broadband companies to build in areas without fast broadband speeds for years ( mainly BT). Not to dissimilar from the government subsiding train / bus routes to enable non profitable routes to run.
Otherwise why would a private company build in some areas if they cannot get a return on their investments.
 
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