Labour make even more radical pitch on expansion of the state - renationalisation of parts of BT - Openreach, consumer and business broadband in order to provide free fibre broadband to every one of 27 million UK households...
BT’s market cap is about £20bn...seems to be roughly half of it Labour argue should be renationalised (eg not mobile or TV), or rather nationalised, given that broadband didnt exist when privatisation occurred... into a new company ‘British Broadband”...
“Cost set by Parliament”
“Cost set by Parliament”
In fiscal terms, Labour’s new “net worth” rule means the borrowing will be effectively offset against the value of the assets acquire - will be neutral in terms of this measure, though will increase debt alone...
Not entirely sure how this part works. McDonnell’s plan isnt to acquire the whole of BT, so surely they wouldn’t buy BT shares in this case (including off army of small shareholders) - they are proposing buying Openreach and other bits OFF BT... ???
Anyway, by the end of the Parliament, Labour claim 15-18 million premises will be connected to this free full-fibre broadband - the ongoing costs having built the network will be funded by a Tech tax on the likes of Google and Facebook, they say.
As well as acquiring off BT, Openreach and its consumer and Business broadband unit for a price determined by PArliament, Labour would use £20bn (inc planned Johnson Govt £5bn) in borrowed capital investment to start to spread fibre broadband...
This is Ofcom’s model of capital expenditure required for full fibre broadband - relatively cheap, economic and competitive for first half of population (£3-400) - and then thousands of £££ per install for final 2-3 million 
This policy of providing it for free would obviously be very problematic for small suppliers already starting to provide fibre in the competitive market:
