I do not see the reason to use any tax money on this. Spending tax money creates always a controversy as people start asking questions about priorities. Sometimes rightly so.
If I were the supreme dictator, I would solve the funding gap by increasing Openreach part of our line rentals. The asinine decision to cap it and actually force them to decrease it over the years prevents the natural mechanism of funding network upgrades: get the money from customers. I just got a £1,50 "line rental" price increase from Sky, and not a penny of this money goes to infrastructure building.
Yes, a monopoly needs supervision and a watchdog to make sure prices are not unfair. But it does not feel fair either that I have funded in my line rentals network upgrades in "easy to upgrade" parts of the country, and when it would now be time to upgrade my connection, the others are not willing to chip in. If and when our wired (copper, fibre, coax, whatever) infrastructure cannot be upgraded to acceptable levels - and kept on an acceptable level also in the future - with the funding created by current line rental charges, then it is fair to say the line rental charge is too small.
If the poor do not have money to get a telephone line and the very basic internet connection if connection prices were increased to a more sustainable level, maybe we should use some tax money to give more money to the poor instead in a form of a subsidised connection. This would pass the political apparatus much easier than a decision to use taxpayers' money to build networks. Whatever this increase would be, most of us would not notice it anyway.
Just my thought.
H



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