BT’s ambitious plan, worth GBP 1.5 billion, to rollout fibre optic networks for faster broadband services may temporary go on hold, owing to the ongoing turmoil in global economy.
BT’s chief exec, Ian Livingston, dropped a hint about the delay in fibre rollout plans, after a group of shareholders contacted him to withdraw the plans in the wake of current economic uncertainty.
Earlier, the company had announced to pool a whopping GBP 1.5 billion for providing faster fibre optic broadband connectivity, which could substantially enhance broadband speeds up to 40 Megabits per second, to ten millions households in UK within four years.
Quoting the shareholders’ response on BT’s fibre network plans, Livingston even cited some shareholders saying “you know something, don't do that, don't do a whole lot of other things. That leaves you with a lot more cash and cash today is worth a lot more than cash in a few years' time.”
Livingston further stated that Ofcom must allow BT to fetch the returns on investments in the fibre optic broadband service, or it would be difficult for the company to roll out the plan.
The company has been hit by the economic distress, and has already announced to shed 10,000 jobs globally by March 2009, to sustain its profitability up to optimum levels.