We recently reported that BT had quoted over £0.5m to bring VDSL2 to Erbistock whilst rival Rutland Telecom was offering to do the job for tenth of the cost. A BT quote published on eWeek Europe suggests that the £500,000 was the highest figure from a number of options.
"My understanding is that the £500,000 plus figure was provided as one of a number of options, and it was the most expensive option as it meant building an entirely new copper network in area, which would have meant major civil engineering works [..] That figure was the initial figure given, but there were also significantly cheaper options. We are still exploring alternative solutions for the area [..] With Rutland, they are not obliged to wholesale their service like BT is. So they can therefore guarantee a return on their investment, because they effectively create a local monopoly. But for us it is more of a challenge, as we can’t guarantee our retail arm will benefit from the investment."
BT spokesman (quote from eWeek)
So it seems the original figure was for a complete rebuild of the copper network, which probably meant re-locating telegraph poles, new ducting and probably thicker copper cable that is now standard. Quotes for the other options, which we presume included a FTTC style arrangement as Rutland Telecom are planning are not available, so a like-for-like comparison is difficult.
BT speaking utter rubbish. They earn money from other providers reselling broadband. It is not like they give it away for free if not sold by BT retail.