BT explains its investments in fiber and other areas in Q3

BT business
Telecom network operator BT Group today said it made an investment of £587 million (-2 percent) during the third quarter ended December 31, 2015.

BT made a Capex related investment of £103 million for Global Services, £35 million for BT Business, £46 million for BT Consumer and £41 million for BT Wholesale.

BT has added 130,000 retail broadband customers, representing 71 percent of the DSL and fiber broadband market net additions. BT added 250,000 fiber broadband customers, taking customer base to 3.7 million. 46 percent of broadband customers are on fiber.

BT is the process of spending around £80 million across operating and capital expenditure over two years to boost performance, including IT initiatives to answer over 80 percent of customer calls from within the UK by the end of 2016.

Openreach connected 494,000 new customers, an increase of 32 percent. Around 5.5 million homes and businesses are connected to fiber broadband network. BT’s rivals added 244,000 or around half of the net connections in the quarter demonstrating the demand for fiber. BT has 3.7 million retail fiber broadband customers after adding 250,000. UK broadband market grew by 182,000. BT’s share was 130,000 or 71 percent.

The telecom network operator added a third, technical trial in Swansea to assess deployment of the broadband technology to residential and business customers in apartment blocks and business centers.

BT financial performance

BT says its revenue rose 3 percent to £4,594 million. BT generated Q3 revenue of £1,675 million from Global Services, £779 from BT Business, £1,205 million from BT Consumer, £527 million from BT Wholesale and £1,294 million from Openreach.

BT CEO Gavin Patterson said: “This is a strong set of results with good numbers across the board. Revenue 4 was up 4.7 percent this quarter, our best result for more than seven years. We are making good progress towards our goal of sustainable profitable revenue growth.”

The new look BT

BT will have new divisions following the acquisition of EE.

EE’s business division and parts of BT Global Services’ UK corporate and public sector operations will be combined with BT Business.

BT Global Services will sharpen its focus on serving multinational companies and major customers outside the UK.

EE’s MVNO operations and certain businesses within BT Business, such as BT Fleet, will move into BT Wholesale.

EE’s technology team will move across to join BT TSO where they will form a mobile technology unit.

Baburajan K
[email protected]