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Author Topic: BT See £712m for BDUK as Ultrafast Broadband Hits 2Million Premises  (Read 223 times)


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BT Group has released their latest results to the end of September 2018 (Q2 – 18/19 financial), which reveals that the coverage of Openreach’s “ultrafast broadband” (100Mbps+) network has reached 1290000 UK premises and FTTP covers 682,000 (13,000+ to “full fibre” per week). Plus there’s £712m to boost “fibre” cover.

As usual there have been a number of developments over the past few months, including Openreach’s decision to scale back their roll-out of hybrid fibre technology from 10 million to 5.7 million UK premises by the end of 2020 and new areas were added to their Fibre-to-the-Premises (FTTP) rollout. Separately BT plans to hire another 1,000 customer service staff to improve support and have a new CEO.

Meanwhile Openreach has further reduced the price of deploying FTTP for smaller new build home developments and EE recently switched on their first live UK trial of 5G based wireless technology in London. EE are also said to be talking about the launch of a new Pay TV product based around the Apple TV 4K set-top-box.

    Gavin Patterson, Outgoing CEO of BT Group, said:

    “We continued to generate positive momentum in the second quarter resulting in encouraging results for the half year. We are successfully delivering against the core pillars of our strategy with improved customer experience metrics, accelerating ultrafast deployment and positive progress towards transforming our operating model.

    In Consumer, we continue to see strong sales of our converged product, BT Plus, and have seen good mobile sales following new handset launches. Last month EE demonstrated 5G capability from a live site in Canary Wharf. We have maintained momentum in our enterprise businesses despite legacy product declines.

    On 1 October we completed the transfer of 31,000 employees into Openreach, a key part of fulfilling our DCR commitments. Openreach has signed up the majority of its major and a number of its smaller communications providers to its new volume related discounts which should increase average broadband speeds across the UK. We are making positive progress on the key enablers to ensure that we can secure a fair return on our FTTP investment, and are ready to expand the FTTP programme up to and beyond 10 million premises if the conditions are right.

    Our strategy is delivering, with benefits evident from the steps we’ve been taking to simplify and strengthen the business and improve efficiency. Despite increasingly competitive fixed, mobile and networking markets and continued declines in legacy products there is no change in our overall outlook for the full year. Based on current trading, we expect EBITDA to be in the upper half of our £7.3 – £7.4 billion range.”
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Re: BT See £712m for BDUK as Ultrafast Broadband Hits 2Million Premises
« Reply #1 on: November 01, 2018, 01:53:25 PM »

The interesting thing for me was the cause of the £712m - mainly that BT have revised their take-up assumptions for fibre connections in BDUK areas from 41% to 61%.

From memory, when they first bid for BDUK work this figure was assumed to be in the 20-25% range!