Green light for BT to start connecting full-fibre broadband to 20 million homes

BT HAS confirmed plans to spend £12 billion rolling out full-fibre broadband to 20 million homes in the UK no later than the end of the decade, following the publication of new rules by Ofcom.

A long-awaited decision by the regulator will allow BT to secure the returns on investment bosses had been hoping for and provide clarity over pricing for the next 10 years, the company added.

Officials at BT hoped the £12 billion investment would allow them to make a profit margin of 12 per cent.

Although Ofcom did not specify a percentage, the company said the rules would allow the rollout to begin.

Philip Jansen, chief executive of BT, said: “This is good news for all fibre providers in the UK.

“For us, it is the green light we’ve been waiting for to get on and build like fury.

“Full-fibre broadband will be the foundation of a strong BT for decades to come – and a shot in the arm for the UK as we build back better from this pandemic.”

BT’s wholesale division, Openreach, will see no regulation or price caps on its new fibre services but will be able to increase prices on its older copper networks in line with inflation for the next 10 years.

The increase in costs on the older networks will encourage customers to switch to the new full-fibre services and the extra cash will go towards the rollout and get investors the returns they were expecting. Clive Selley, Openreach’s chief, said: “We’ve now passed almost 4.5 million premises and are building faster, at lower cost and higher quality than anyone else in the UK.

“Today’s regulation will allow us to ramp up to three million premises per year providing vital next generation connectivity for homes and business right across the UK.”

Ofcom said the approach will lead to properties in around 70 per cent of the UK having a choice of networks from competitive commercial rollout.