RE: Prospective Dividend24 Sep 2022 19:55
Impolit, remember the 2008 global crash? Yeah that would be exactly the time to reserve cash and not expand your networks if you didn’t know what you were doing, yet it’s exactly what BT did with their FTTC roll out. They also took on about 5,000 new engineers many ex forces. As the rest of industry was paralysed or making cutbacks BT ploughed on because they take the long term outlook and the FTTC networks spelt the end for LLU and service providers were once again buying their broadband from BT/OR again.
On to FTTP, BT have already announced the closure of PSTN and copper networks in 25/26. Project equinox has been signed by the major providers to connect to FTTP when it becomes available in an exchange area and that is happening with SKY carrying out their own internal network to the external OR network.
BT are using their own money to build their network. The ones worrying will be the altnets who have borrowed billions and their backers will want a quick return. However BT have already announced that they will undercut any altnets so a price war will only drive prices lower and with economy of scale BT are well positioned. Once again they are playing the long game.
Billions saved with 4,300 exchanges gone in 3 years time. Engineering work force slashed up to 50% in 3-4, years saving more money and the recovery of copper from the ground that they can sell estimated at about 3-5 billion. No other provider can make these savings and also monetise their old network on the scale that BT can.
One thing customers make sure in a downturn is that they have an internet connection so pretty recession resilient.
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