BBC agrees to contribute £300m to broadband rollout
The BBC Trust will spend £300 million on a broadband rollout by handing over £150 million of licence fee income to the Department for Culture, Media and Sport (DCMS) for the next two years, reports Ariel.
It was revealed that the cash will go toward the rollout of faster broadband in rural areas of the UK, with the deal starting from April 2015.
The Trust is entitled to a seat on the DCMS Broadband Portfolio Board as a result of the deal, which will see the BBC hand over £12.5 million a month for the next two years.
As part of the agreement, the BBC will take over the cost of the Foreign Office-funded World Service, as well as BBC Monitoring, and part of the costs of Welsh language channel S4C and local television.
In July, the Federation of Entertainment Unions called for the BBC to scrap the deal from two years ago.
"The additional funding responsibilities placed on the BBC by the settlement in 2010 should be reversed and the money ploughed back into core output," the union asked.