A similar project in Dorset was turned down last month. It comes just weeks after a report criticised the government for wasting taxpayers' money by giving all of its broadband funds to BT. Those involved are angry that BT will monopolise rural broadband rollouts.
Both Oxfordshire and Dorset county councils have signed contracts with BT to provide broadband services to rural areas. These contracts mean that alternative schemes are no longer required. Having competition in the broadband market is important, think experts.
"Some of the niche operators want to deliver better and faster services now, and don't understand how BT can win contracts on what they believe is a weaker product," said Sebastien Lahtinen, founder of broadband news site ThinkBroadband.
BDUK, the group set up by government to oversee rural broadband rollouts, has been widely criticised for how it has handled the process. All contracts in England and Wales have been awarded to BT, which is providing so-called fibre-to-the-cabinet (FTTC) services to the majority of UK homes.
Fibre to the cabinet provides fibre to the green street cabinets that are located in towns and villages around the UK but relies on old-fashioned copper connections to reach individual homes, meaning that the further a home is from the cabinet, the slower the service will be.
Most of the rival rural broadband providers want to roll out fibre-to-the-home (FTTH) services, which run fibre all the way to premises and are faster than FTTC. As well as doubts about whether that is the best technology to use, there has been outrage that taxpayers' money has gone to a former telecom monopoly.
Source: BBC News