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Fleccy.............. "Easily explains why BT are forecasting £2 Billion annual cost saving from 2025 onward."
Maybe in 2025 the UK media will start and report more favourable articles regarding BT, because they certainly have it in for BT right now.
"Although a contradiction could be the new clean slate employee with no previous knowledge could be the fresh eyes the company needs! What do I know as an ex-BT employee now investing in BT haha!"
I've looked at the new GPON hierarchy and it looks p155 easy to maintain, with 32 customers per OLT port with passive optical splitter/combiners between the OLT and customer ONT's. As voice will be cloud based, same as data, everything will use the same equipment, so massive reduction in costs and power usage.
All the current Telephone Exchanges will be gone,
All the copper related products, gone.
Central office battery requirements, gone.
The efficiencies will mean a lot less Engineers, as they'll only require specialist IP and DWDM Network Engineering roles, and Engineers who do the external repairs. The Engineers working on the external physical network will also be trained to work on residential ONT replacement too, would be my guess.
Overall, BT will require less Engineers, less buildings, less power usage, converged communications so less Equipment, easier maintenance with a simplified hierarchy, etc, etc, etc.
Easily explains why BT are forecasting £2 Billion annual cost saving from 2025 onward.
I would also hope BT are using the FTTP rollout to take account of the requirement for blanket coverage of smaller 5G Cells.
@Fleccy: Ahh you’re absolutely right that BT engineers that are the long timers have either dedicated their lives to the firm or just crafted their skill in the business are the true unsung heroes who have built the firm up! What I was referring to - is the new recruits or the supposed succession planning is little too late to take over and better their predecessors are either not committed calibre or they only stay for a couple of months or years and then move on when they have a big corporate name under their belt as they realise the majority in their sector are majority 50-60 plus years old and as a previous poster mentioned - some are dead wood which have only one thing in mind and the other who still are committed since day one! This is what I meant by the sad truth - that the new employee would not be as committed success plan - as the engineer/employee who will leave or take the package will leave with all the specialised knowledge and experience they gained! Although a contradiction could be the new clean slate employee with no previous knowledge could be the fresh eyes the company needs! What do I know as an ex-BT employee now investing in BT haha!
I dread to think what would have happened to the share price had the results been poor.
"Another results day and the same MO - SP goes south regardless of the substance. But I can’t remember 10% up then down on the same day ? As I suspect, all long term holders of this share are being played"
Disgusting what happened today, in all my 36 years of investing I also cannot remember such a movement in the share price on news of results. This never happened 20 years ago. It's getting harder to invest, the market is corrupt, that I'm sure of.
Another results day and the same MO - SP goes south regardless of the substance. But I can’t remember 10% up then down on the same day ? As I suspect, all long term holders of this share are being played
I've worked for BT and although I have utmost respect for their engineers (and the holes and poles operational side of the business) .....
There are also swathes of dead wood employees who are drifting along waiting for the final salary pension scheme (which they joined pre 2001) to pay out.
This dead wood is neither useful for the business or employable anywhere else ....
And it is a significant drag on the business both financially and strategically in that a lot of the good people leave because they can't cut through the dead wood to instigate business change. Anyhow that's why I left ... It was like trying to push jelly uphill ...
Having said all that - I can't believe this share is trading so low and I am a LTH that added more shares today after those good set or results.
Trenners
"sure do the head count chopping but sad truth is BT have been poor at training or recruiting competent and skilled employees to move the company forward"
Actually that statement is completely untrue. I haven't worked for BT, but I've worked with BT Engineers and they're well trained at their specific job role. If there's a criticism, it's that BT Engineers are too specialised, which means BT could reduce headcount by utilising their Engineering resource more efficiently, and have Engineers working on a broader range of Equipment's. I suspect that's what they're in the process of doing now.
@Tony2119 : The redundancies are already and have been happening all over the divisions in BT as well as the sell off of the family silver. Little birdy has even told me some are even getting 2 years money to leave the firm. Furthermore, sure do the head count chopping but sad truth is BT have been poor at training or recruiting competent and skilled employees to move the company forward - as you can see from their buildings etc. everything is still so archaic as I bet their systems are too and just not up to speed to contend with the tech firms that are sprinting ahead - which is why I am glad they are finally spending money to reinvent themselves as they realised they cannot be or do the same they have been doing the past x-amount of decades if they want to see through the next decade and not be another giant name to join the rest of the big conglomerates who have hit the dirt. Queue - Philip Jansen who does seem to want to take some risks and seems to be heading in the right direction and seems to be walking the walk for the time being!
I think it’ll bounce back up when analysts’ release revised forecasts over the next fortnight. But you have been right so far and could be on the money again, maybe it stays hovering at a quid.
I was very glad to see they have started the hard work of chopping headcount. It’s a bloated business.
Look at the below for an indicator of their headcount problem...
https://telecoms.com/505943/union-talks-of-strike-action-as-redundancies-loom-at-bt/
@Bilbo_Baggins: Yes I did think the same 10 years ago that it was a bargain galore - and put my money where my mouth was then and made a nice 6 figure gain from it. Correct the H1 results today do not point to a steady share price rise - hence if any one who knows how BT sp has been moving these past few years on positive results will know they rise only for a short time before retracing as there is just not substantial enough news, or simply there are more stocks out there which will yield better returns in the meantime or investors just dont believe BT's transformation story . Regarding, the dividend - that is only paid twice a year and even if it is restored and will be lucky if it is half of what it was is a nice to have for sure. However, the fruition and success of their investments they are spending copious amounts money on now for the future is what I hope will happen in the next 5 years at least is what I am interested in. As stated before this will just bounce between £1 - £1.20 for a while and sub £1 if more bad worldly news comes in next couple of weeks/months which again happy to be totally wrong. Just my opinion of course . GL :)
A penny share company without whom the country would grind to a halt would be many multiples of sp if on the dow madness
" bargain galore for long term!" Did you think the same 10 tears ago when the shares were 33% higher? BT are 78% down on a 5 performance. Today's H1 results (pre-tax profits down by a fifth) do not point to a steady rise in the (share) price but to more of the same i.e. 2 up 2 down. Pray for the restoration of the dividend, likely to be less attractive than hitherto, as a saving grace.
Just to add to my previous post. The easiest way to beat the Market Manipulators, sorry I mean Market Makers, is to hold until they decide it's in their interest to allow BT to re-rate upward. They only really win when investors sell at a loss. Unfortunately shorting with borrowed shares and brokerage houses holding most of todays retail stock, puts retail at a massive disadvantage to the big players, who pretty much own the house.
It is always difficult to be patient with shares as we all want that positive outcome. But in the current interest rate environment it is difficult to find better investment opportunities.
I think BT has a good future both in terms of income and capital growth. The telecoms industry is not likely to disappear overnight so happy to hold this for a 5 year time line.
This share never fails to disappoint
"Mkt is crazy today. These being forced to a quid all day. "
Just reinforces my view that BT's price is manipulated down. It opened around a 110p and touched 111p and now sitting lower than yesterdays close. In percentage terms it opened more than 8% above the previous close. touched over 9% higher and is currently down 1.38%, dropping over 10% from the day's peak. That isn't normal price action, so one could be forgiven for thinking that BT's share price is manipulated. Lloyds is holding on to it's earlier gains, so it isn't macro related. Vodafone opened down this morning and is now sitting in positive territory, so price action isn't sector specific either.
Not just today - and do not want to sound doom and gloom but more drops to come here in the short term imho - and dare I hate to say even test the 90p mark but gladly to be proven wrong but if it does - it will be bargain galore for long term! If it does bounce it will be kicking between £1 - £1.20 until end of Xmas otherwise it will be close to the former price stated.
Mkt is crazy today. These being forced to a quid all day. Wonder if there’s a large option expiry today expiring as looks like it’s been completely manipulated all day versus decent results.
Although can see broker upgrades in coming days to move properly up soon