Digital Region To Go Bye Bye?

[gribz_uk]

As I had nothing better to do on a boring Sunday night, I decided to read the Sheffield Council Budget Consultation document, I thought this bit might be interesting if it hasn't been picked up already;

Quote:Digital Region costs: the Council is contractually committed to the Digital Region project. The Council is both a shareholder and guarantor for the partnership and therefore has a responsibility in the event of Company failure. The operating results and fore cast growth for the Company are well below the levels originally envisaged. This has resulted in a revision to the original business plan and to contract changes with the private sector partner.

If the Company were to fail and the contract was terminated, the Council would be liable for a proportion of termination costs which could include compensation for termination of customer contracts, non repayment of various loans and potential grant claw back by the relevant Government bodies.

The Council applied to the Government for permission to capitalise the potential costs faced by the Council but this has not as yet been approved. The budget proposals include approximately £4m representing the write off of the Council’s loan to the Digital Region Company.

Which is interesting. Probably something we already knew, however, says to me that DRL need to pull their heads out of their arses and make this work. I really, really don't want to go back to ADSL! :-)

[mirdragon]

I dont think u will have to go back to adsl.

If they start advertising like they should be, then there should be no reason for it to fail.

And if it does, somebody like bt, sky, virgin or talktalk may take over the network