The money would be better invested in forcing the telcos to roll out fttp to all premises in the country.
I don't follow what you're suggesting there. There have been various estimates for the cost of rolling out FTTP to all premises in the country and prior to VDSL they were coming in at around £30 billion. BT's work rolling out VDSL will have reduced that slightly by doing some of the work as they've installed fibre aggregation nodes at various places ready for expansion. Unfortunately that's the cheapest bit to do. The expensive bit is actually running individual fibres from the ag nodes to each premise. Looking at other FTTP projects around the UK (KCOM being a great example) a figure of around £300 per property passed is looking likely. The figures for truly rural roll-out (villages and hamlets) are harder to find and likely a lot higher than that due to low density of housing.
So you're likely looking at a cost considerably in excess of £20b. How do you propose to use £67m to force private companies to spend £20b between them?