In the case of broadband someone who lives in a rural enviroment pays the same line rental as someone in an urban enviroment and it all goes into one pot. If you don't want to upgrade a particular segment of the network, then those parts of the network which aren't upgraded should pay less to their ISP. I live in a rural area and what is more frustrating than slow broadband speeds is paying through the nose for it. Sorry we can't give you our advertised £3.50 offer because your exchange is a non LLU we can however offer you a service for £20. How is that fair?
It's fair because it costs more to bring service to you over that longer distance. It's far better than the US solution, where the urban/suburban users end up subsidizing the rural users.
No it's not fair, we aren't talking hundreds of miles, you could be in a rural area and be less than a dozen miles from one or more cities.
But aren't in essence rural users who often pay more for an inferior serivce with slower speeds subsidising urban users who often pay less and get a better speed?