BT is going to spend billions of pounds investing in faster broadband and 4G speeds, Reuters reported on Thursday. The investment, £6 billion large, comes as a response to both critics and rivals, who have been saying BT is slow to react and cover more households and businesses with high-speed internet.
Better customer service, as well as an increase in supply of superfast internet, should be available to 10 million households and businesses in the next three years, BT said. It also added that it’s going for 12 million.
Reuters seems to be hinting that the investment is a direct result of strong earnings BT reported. According to its report, BT has seen a 6 per cent increase in full-year earnings, with core earnings of £6.58 billion for the year to end-March.
This includes the contribution from recently acquired EE. Revenue was also up 6 per cent, to £18.91 billion.
BT is currently locked in a battle with its competitors, mostly Sky and TalkTalk, over the future of its profitable networks division Openreach. The competitors have argued to communications watchdog Ofcom that BT is not doing enough, and not investing enough, in supporting Openreach, the division whose services are also used by TalkTalk and Sky.
They believe Openreach should be split from BT, as that would improve its overall performance. BT, on the other hand, says it is doing enough and that splitting up from Openreach would do little good.
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