BT today backed Boris Johnson’s pledge to get ultrafast internet to every home in Britain by 2025.
The telecoms giant said the scheme would cost £30 billion and require 30,000 staff to complete on time.
Chief executive Philip Jansen called for “quick, decisive action” from the government, including a removal of planning restrictions that make it tricky for BT to lay the fibre-optic cable that is needed for ultrafast broadband.
He said BT will need the same rights as water and energy companies to make the Prime Minister’s vision a reality.
“It is fantastic this is now being seen as a national priority. This is an enormous plan. We will find a way of paying for it,” said Jansen. BT says it could fund the deal by borrowing from the City and possibly cutting its dividend. Shareholders would be happy so long as the government allows the company to make a decent return on what would be a massive investment.
Alternatively, said Jansen, there could be a government subsidy to telecoms firms to help them fund the work.
“No company could spend £30 billion-plus without a view on future returns,” said Jansen. Getting fibre cable to the UK’s 32 million homes would be hugely disruptive, the company admits, but it would be worthwhile for the boost to the economy.
“At the kind of pace Boris is talking about, we have to accept a little bit of inconvenience,” said Jansen. “Let’s get it done.”
BT already has 107,000 staff but is recruiting apace.
Jansen’s stance is a departure from that of his predecessor Gavin Patterson. In the past BT has sometimes argued ultrafast internet is unnecessary for most people, or too costly to install in rural areas.
BT is already connecting 20,000 properties a week via its Openreach arm. At the moment, ultrafast fibre is available to less than 10% of UK homes, compared with 80% for some European countries.
In the first quarter BT saw revenues slip slightly to £5.6 billion. Under Jansen, it plans to cut its corporate customer numbers to focus on serving a small number of big companies. He denied reports BT could sell its international arm.
“We want global operations that are smarter, more focussed,” he said. “There will be some divestment of infrastructure, but that doesn’t mean pulling out of specific countries.”
