Owner of broadband firm Upp - with customers in Stamford and Market Deeping - to be forced to sell up amid national security concerns

The owner of a local broadband provider will be forced to sell the business amid concerns over 'national security'.

Upp has rolled out fast full-fibre connections to homes in Stamford and Market Deeping as part of a push to boost broadband in this area.

However, its investment firm owner LetterOne has now been ordered to sell the company by business secretary Grant Shapps.

LetterOne was reported to have links to a sanctioned Russian businessmen - and the sale will be forced using powers brought in to clamp down on such individuals after the start of the war in Ukraine.

The Government said its action was 'necessary and proportionate' to 'mitigate the risk to national security'.

A government spokesman said: “Following a detailed national security assessment, the Business Secretary has decided to issue a Final Order requiring LetterOne Core Investment to sell its shares in Upp Corporation to prevent against potential national security risks.

“The National Security and Investment regime enables us to continue championing business and open investment, whilst protecting national security.”

The order will also require a full security audit of the Upp network before it is sold on.

Earlier this month, Upp had announced that it hoped to connect homes in Bourne and Holbeach by the end of the year. It has customers in Downham Market, Diss, Theford, Woodhall Spa and Horncastle and also had plans to expand to Lincoln, Grantham, King's Lynn, Wisbech next with an aim to reach more than a million homes by 2025.

It uses a technology known as FTTP - or fibre to the premises - which means internet that is wired directly to your home instead of a cabinet.

LetterOne has said it has distanced itself from sanctioned shareholders and denies it is a threat to national security.

It bought Upp - previously known as Fibre Me Limited - in January 2021 through L1T FM Holdings.

A spokesperson for Upp said: "We are disappointed by the decision the government has reached, but it does not affect the quality, ultra-fast broadband service we provide.

"We already have significant security and strong corporate governance measures in place.

"We will ensure that our business continues to operate as usual while we assess the BEIS order.

"We remain committed to ensuring our ultra-fast broadband is safe and secure."