• Sat. Sep 18th ,2021

Telecom major BT pledges to provide fast broadband to 5M more UK homes

By   Rini Dalvi

Date: May 14, 2021

British multinational telecommunications company, BT has reportedly revealed its plans to speed up its full-fiber broadband rollout for 5 million more households than planned previously. The company estimates that this move could create around 7,000 jobs.

Philip Jansen, CEO of BT, stated that the company is also putting forth the deadline for completing the work, wherein 25 million homes are expected to be connected by 2026. This is a large-scale program with an investment of £15 billion, Jansen added.

The company had reportedly been criticized for the pace of the rollout of full-fiber broadband. However, BT stated that introduction of tax changes regarding fiber broadband investment to businesses and homes enabled it to expedite its strategy.

Jansen mentioned that faster rollout could be made through joint ventures with other parties for sharing the investment and work with its Openreach operation, especially to accelerate broadband access in rural areas.

Numerous telecom rivals in Europe and private equity investors have apparently considered trying to secure a slice in the UK’s rapidly expanding broadband infrastructure.

Jansen stated that speeding the plans will help foster the economic recovery of the country with better connectivity and around 7,000 new jobs.

This announcement from BT apparently came as the company reported a decline of 23% in full-year pre-tax profit to £1.8 billion mainly due to a fall of 7% in revenue to £21.3 billion. Reportedly, the company’s profit was also spent on a bonus for frontline staff, heightened cost of services and continuing investment in fiber network.

In this regard, Jansen stated that he was confident about future trading. He added that after several years of hard work, and as the company is looking forward to coming back better from the pandemic, it is now making predictable and consistent growth.

To relieve the shareholders, the telecom giant stated that it had planned to bring back its dividend. However, it was suspended due to Covid-19 crisis, during the current financial year.

Source credits: https://www.bbc.co.uk/news/business-57091063

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