Telecoms giants BT and Virgin Media are to take Birmingham City Council to court over its plans to install a high-speed broadband network in the city via public funds.
The Urban Broadband Fund was set up by Chancellor George Osborne to provide £150m of capital to improve Britain’s broadband infrastructure in 20 cities with Birmingham amongst the first to take advantage of the fund.
It has already been given the go-ahead by the European Commission but Virgin Media and BT claim that it will overlap with their own networks.
A Virgin Media spokesman said: “It is disappointing that Birmingham city council has put forward a scheme which is not in the interests of local people and we believe, as a result, the European Commission has made a decision based on inaccurate and misleading information which could waste public money.
James McKay of Birmingham city council, said: “Birmingham is extremely disappointed by the decision to appeal this landmark ruling.
“The city has worked in a very positive and collaborative way over the last few years to help inform and develop our business case and we are surprised that they have now chosen to appeal at such a late stage."