BT has confirmed plans to extend its fibre broadband rollout, after reporting better than expected profits.
The company announced profits of just over £1 billion for the year ending 31 March. That’s a marked improvement on last year, when BT posted a net loss of £244 million.
BT has announced it will plough pretty much all of that profit into fibre broadband. The company has confirmed plans leaked earlier this week that it will now reach two thirds of the country with its fibre rollout by 2015. Until now, BT had only committed to hitting 40% of homes by 2012.
"Assuming an acceptable environment for investment, we see the potential to roll out fibre to around two-thirds of the UK by 2015," said BT CEO Ian Livingston. "This will take our total fibre investment to £2.5bn which will be managed within our current levels of capital expenditure."
When asked to confirm what an "acceptable environment for investment" meant, a BT spokesman insisted the company wasn’t trying to wriggle fresh concessions out of telecoms regulator Ofcom. BT last year won the freedom to set its own wholesale fibre prices as a condition of its initial rollout.
Instead, BT claims the caveat is designed to reassure investors that BT would review the investment if regulatory or market conditions changed.
BT reportedly decided to pump more money into fibre after having received encouragement that rival ISPs such as Sky and TalkTalk will lease wholesale high-speed connections from the company. The BT spokesman wouldn’t confirm any new deals, but said that "the more people using our network the better, as it helps us get a return on it".
Read more →