The ill-fated and controversial Digital Region superfast broadband project is to close.
Barnsley Council has put millions of pounds into the project and on Monday it and other shareholders in the 'pioneering' project agreed to halt their search for a private sector partner.
In a statement yesterday Barnsley, Doncaster, Rotherham and Sheffield councils - along with major shareholder, the government's Department for Business, Innovation and Skills - said they had agreed a managed closedown of the superfast broadband network.
Had the project continued it would have cost about £95.8 million and officials say closure of the network will save the taxpayer about £12.5 million, and potentially more, subject to negotiations with existing contractors and customers.
The closure follows increased uncertainty and risk about future funding under EU state aid rules. In a joint statement the four councils said moving existing Digital Region Limited customers to alternative networks is the most cost-effective deal for the public purse.