BT’s voluntary offer to connect remote homes to superfast broadband is to be rejected by the UK Government, it has emerged. The offer, which pledged to connect 1.1 million homes to superfast broadband, has been denied in favour of giving homeowners the legal right to demand an upgrade from their telecoms providers instead.

The Government has been weighing up the offer made by BT, who pledged to improve speeds in sparsely populated areas, versus moving ahead with a ‘Universal Service Obligation’ system (USO) similar to that for telephone lines.

If the final decision – which according to sources close to the Financial Times will be aired today – favours a USO, customers will have the legal right to request a broadband connection of at least 10 Mbps by 2020 from their ISP.

In this case, the Government will most likely seek regulatory advice on how to legislate the USO. Ofcom will most likely liaise with the Government on this rural framework.

Culture secretary Karen Bradley remarked of the deal: “We are grateful to BT for their proposal but have decided that only a regulatory approach will make high-speed broadband a reality for everyone in the UK, regardless of where they live or work.”

BT’s offer, made in July, pledged to close the ‘digital divide’ between urban and rural broadband coverage. The provider argued that it would start work immediately if given the go-ahead. BT’s rivals however, including Sky and TalkTalk, raised the prospect of legal action as the cost of the rollout (approximately £450 million-£600 million) would be spread across the entire UK broadband industry.

A USO also proved worrisome for politicians, some of which pushed for the proposed bar of 10 Mbps to be raised. According to the Financial Times, Ofcom has previously described the 10 Mbps speed as a ‘floor’, which could be raised over time.

In comparison, Scotland’s R100 commitment has pledged a minimum 30Mbps for every household north of the border by 2021.

The USO debate has also proved a test for the legal separation between BT and Openreach – the unit that deals with the UK’s physical telecom infrastructure. The separation has been hampered by discussions surrounding the accountability of BT for Openreach’s infrastructure, frequently attacked as inadequate, which most other large broadband providers also use.

Ofcom noted this week in its Connected Nations report that only 2% of the UK’s broadband connections are full fibre – a statistic seemingly unchanged from this September. This very low penetration pales in comparison to 97% in Japan, 86% in Portugal and 63% full-fibre rates in Spain. The UK reportedly has the same ratio of full fibre lines as Nigeria, according to Ofcom.