Matt Oliver BT is told to invest in broadband not football

THE telecoms watchdog has told BT to spend more on broadband instead of expensive football rights.

Sharon White, chief executive of Ofcom, took aim at the company for handing cash to shareholders and spending billions of pounds on its sports channel while the UK’s internet speeds lagged behind European rivals.

She said improving the country’s broadband network was a ‘national priority’ and called on BT to go further than its current plans.

The firm has spent more than £2bn on the rights to Champions League and Europa League football since 2014 as it battles for supremacy with rival Sky. In another coup, it bought the rights to broadcast the Ashes cricket series in a deal worth a reported £16m a year.

But the telecoms giant – which owns most of Britain’s phone and internet cables – is under pressure to spend up to £6bn on the next major upgrade of broadband services.

This would replace copper wires running into about 10m homes with fibre-optic cables offering much faster speeds.

In Spain and Portugal more than 60pc of homes and businesses already have this, but in Britain just 3pc do, White said in Birmingham yesterday.

She added: ‘The UK is already playing catch-up, and without more investment we risk falling even further behind.

‘We recognise the competing priorities that any major operator faces – be it investing in sports or other content rights, dividends, pensions or its broadband infrastructure.

‘But the national priority is clear. As the owner of Openreach [BT’s cables division], BT should act in the interest of all of its customers who rely on it, as well as its shareholders.’

In a coded criticism of BT’s plans, White also said it was possible to carry out an upgrade without adding to household bills. At the moment, Openreach, says it should be able to charge internet providers such as Sky, Talk Talk and Vodafone up to £7 extra a month to pay for it – a cost that could then be passed to customers.

A spokesman for Openreach said it had invested £11bn in its broadband network since 2007 – more than any other business.

He added: ‘Continuing to invest remains a priority for us. Our programme to upgrade 2m premises to full fibre is well under way and we’ve been consulting on how to reach 10m homes and businesses by the mid-2020s.’