BT shareholders may want to stall on Fibre broadband rollout
19th November 2008
BT's shareholders will want to know they can make a decent return form the investment in Fibre network before they all want to go ahead with it
Some BT shareholders want BT to keep it's money in the bank as apposed to spending it on a Fibre roll out that will cost BT £1.5bn over the next few years.
With the credit crunch here many investors are feeling a bit nervous and are wanting BT to take the safe option which isn't good news for UK broadband users who get their services via the BT Wholesale network.
Fibre Broadband is widely known as the next step that the UK needs to take for it's next generation broadband because it will offer much faster speeds and much larger usage.
Ian Livingston, the BT Chief Executive has once again said that Ofcom (UK communications regulator) must allow BT more scope to make a proper return on it's investment otherwise it might not be in their shareholders interests to pay out for such a large investment especially in the current financial climate.
It will be the charge to the other ISPs who will want to use the BT network that BT want to be able to make more money from, which in turn will mean other ISPs fibre broadband deals to customers will cost more to cover their own costs.
Already Virgin Media has a Fibre network and they will be more than happy if BT have to stall their own plans to roll out a Fibre network as it gives Virgin the chance to take even more of the market share while they are the main player. Virgin is already trialling 50Mb broadband and will be rolling that out to it's network during 2009.
A delay by BT on this would mean that broadband providers who use the BT Wholesale network will also be being held back so this includes the likes of Sky, Talk Talk and many others.
Author: Rob Cook Copyright: BroadbandWatchdog.co.uk - NetMediaUK.com