Fibre isn't the issue, there's fibre to most large'ish towns. If VM don't have it themselves they can lease it from other operators.
The real cost is the dig to the door.
There are various trials by various companies/ consortiums to provide fast broadband across areas that don't currently have it.
Virgin and Vtesse are undertaking a project in Cornwall
http://www.thisiscornwall.co.uk/corn...l/article.html
Kingston and Thales are undertaing a project in South Yorkshire
http://www.thalesgroup.com/Press_Rel...l_Launch_SYDR/
And GEO are undertaking a project in North Wales under the guise of FibreSpeed
http://www.fibrespeed.co.uk/en/
Although I think fibre speed is business proposition only at the moment.
In regards to Hull as per the post above, they are served by Kingston and have their own DTV and broadband offerring, as is other parts of Lincolnshire.
Also I don't see any compelling reason for VM to buy Smallworld.