BT to answer superfast call
BT WILL invest £ 6billion over the next three years to boost broadband and mobile services as it seeks to head off regulatory pressure for a forced separation of its Openreach network arm.
The telecoms giant plans to provide ultrafast broadband to 12 million homes and businesses by 2020, up from a previously target of 10 million, including reaching two million premises in new housing developments, high streets and business parks with even faster fibre-optic lines, called fibre to the premises ( FTTP). It also plans to improve its EE mobile phone network so it can offer fast 4G coverage to over 95 per cent of the country.
It pledged to improve customer service, including reducing the standard time to fi x line faults by 24 hours and handling 90 per cent of customers’ calls in the UK by next March. Openreach, which operates fibres, wire sand cables that are used by rivals such as Sky and TalkTalk to serve their broadband customers, will hire 1,000 new engineers this year. In return, BT wants reassurance from regulator Ofcom about the amount of control it keeps on investment and returns from the network.
BT chief executive Gavin Patterson, pictured, said: “We expect we can make a fair return on this investment, so we are calling on Ofcom to give us some confi - dence that our shareholders are going to make a fair return. The UK is a digital leader today and it is vital that it remains one in the future. Infrastructure competition is good for the UK and so is the current Openreach model whereby others can piggyback on our investment should they want to.”
But Sky’s chief financial officer Andrew Griffith, countered :“Today’ s statement shows that BT continues to see copper as the basis of its network for 21st- century Britain. Despite BT’s claims, it is clearer than ever that their plans for FTTP will bypass almost every existing UK home. This limited ambition has been dragged out of BT by the threat of regulatory action, demonstrating once again why an independent Openreach, free to raise its own capital, is the best way for the UK to get the fibre network it needs .”
BT also announced a 15 per cent rise in annual pre-tax profit to just over £3 billion. Its BT Sport audiences are up 45 per cent after it spent £ 900million on the rights to Champions League football, and TV customers up 28 per cent to 1.5 million. BT shares rose 11 ½ p to 451p.