FTTH expansion part of BT three-year plan

May 13, 2010
MAY 13, 2010 -- While issuing the carrier’s full year results, Ian Livingston, chief executive of BT, described a three-year plan for the company that includes investments in areas such as fiber broadband, television, and services for global companies and governments in the Asia Pacific region.

MAY 13, 2010 -- While issuing the carrier’s full year results, Ian Livingston, chief executive of BT, described a three-year plan for the company that includes investments in areas such as fiber broadband, television, and services for global companies and governments in the Asia Pacific region.

Livingston’s plan calls for a major expansion of BT’s fiber investment program. With what BT would consider “an acceptable environment for investment,” Livingston said BT’s broadband program could potentially be extended to make FTTH available to around two-thirds of UK homes by 2015. The investment for this roll out, approximately £2.5 billion, will be managed within BT’s current capex levels, he asserted. BT had previously planned to invest £1.5 billion to provide FTTH to around 40 percent of homes in 2012.

BT believes the £2.5 billion earmarked for fiber is one of the largest in the world that doesn’t rely on public sector funding and where the network is open to all service providers on an equal basis.

The roll-out is already under way with 4 million homes due to have access to fiber broadband by the end of 2010.

BT also said it will, within its EBITDA outlook for 2010/11, invest a further £200 million; mainly in the areas of fiber, enhancing its TV services, introducing other new consumer services, and building on opportunities in BT Global Services, particularly in the Asia Pacific region.

Television is a potential growth area for the company and one that will benefit from the roll out of faster broadband, Livingston believes. BT plans to offer a range of new television services, including what it termed “a huge choice” on demand programming, free HD programs, and new interactive services. In addition, Ofcom’s recent decision on Pay TV should enable BT to offer Sky Sports 1 and 2 in time for the 2010/11 football season.

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