Montgomeryshire AM Russell George says rural areas of Powys are being 'snubbed' over internet access with only a small proportion of premises set to be included in the government's phase two broadband scheme.

But Welsh Government ministers have described the situation as a 'market failure' and say commercial companies cherry-picking the most profitable areas are to blame.

After questioning the Welsh Government on the rollout of phase 2 of the 'Superfast Cymru' scheme, the North Powys AM says that only 1,410 premises in Powys out of the 17,960 premises which remain without high speed broadband will be included as part of the scheme.

"The project only aims to reach 26,000 premises out of the 93,000 which have been identified as being without high speed broadband across Wales and there’s to be little change for residents of the areas in Powys left behind by the first phase.

"Counties struggling with the worst high speed broadband coverage in Wales are once again going to be left in the lurch. Only 11% of the premises in Powys which were eligible for inclusion in phase 2 of the scheme will be covered."

"Unfortunately, it appears that communities in Montgomeryshire who have been left stranded, often with broadband infrastructure hanging from poles at the end of their driveways, will still have to wait until the UK Government's Universal Service Obligation for 10 Mbit/s broadband comes into force in 2020 before they can access decent and reliable broadband which is rapidly becoming the "fourth utility" and an essential part of modern life."

The Welsh Government says they have invested more than £200 million rolling out broadband across Wales and more than 95% of properties are now connected as a result of the Superfast Cymru scheme. Contracts for the second phase of the high-speed broadband scheme, which aims to connect 26,000 more properties in remote locations to the superfast network, were awarded to BT Openreach in October last year.

Speaking to the Senedd last week, Deputy Minister for Economy and Transport Lee Waters said the 'diminishing appetite of the private sector' to connect homes in less profitable areas was proving a challenge for the government, and described the situation as a 'market failure'.

"There is more profit available for the private companies in providing faster speeds to people who already have broadband than there is in reaching those who have no broadband, and that is a market failure," he said.

"We've heard the Member and his benches constantly urging us to work in partnership with the private sector, which is what we are doing. The private sector have decided that it's easier for them to only bid for some of the money available to deliver the returns that they expect for their investment.

"So, we've been left to their judgment of which work they want to tender for and which we've been able to award. It has left a gap, which we are anxious to fill and we are looking at creative ways we can fill that."