RE: BT Debt vs others20 Feb 2026 19:12
"but longer term cost cutting becomes less, it’s difficult to do safely and finally with revenue falling eventually you can’t cut your costs out of it"
A statement like that suggests you don't really understand where BT's cost savings will come from, notice I use the word "savings" and not "cutting"; I do realise that the two words can reasonably be interchanged to mean the same thing, but the difference is important in the context of what we're discussing. BT aren't exactly cost cutting, they will make savings due to their strategic transformation.
A lot of the workforce employed in Legacy Network are probably getting long in the tooth and nearing retirement, so which roles will no longer be required going forward? From 2027 onward, post the PSTN switch off, BT will no longer require switch Engineers, or Network Operation's focused toward PSTN so switch NOC Engineers will no longer be required along with switch Engineers. No doubt some may be young enough to retrain into IP Routing technologies, but many may decide it isn't worth it. I also expect a lot of the Engineers who run jumpers and focus on Legacy Network will also no longer be required.
Even though many of the redundant Exchange building's will remain open post 2027, it's likely they'll be stripped out of everything no longer required quite quickly, so Exchange equipment will go along with any legacy network previously carrying traffic to and from the exchanges. Redundant DDF's and ODF's no longer required will also go asap. What will likely remain, for a while, will be the network associated with any FTTC/FTTP connectivity remaining in service and Communication Provider co-location areas, but these will be a small part of the exchange area and require much less power and Engineer resource.
A lot of the jobs to go, like contractors, will naturally disappear as rollout's wind down and capex reduces. Many back office and tech support roles will also disappear, with people having to retrain or go. I've read that BT are looking at financing redundancies and reskilling through selling the vast amount of copper and electronic waste scattered throughout the network. Exchanges and legacy network equipment have value since much of the redundant stock will contain a good amount of gold and rare earth elements; Not quite a gold mine, but a decent return for what's essential redundant scrap.
Although BT/Openreach will reduce their building footprint from around 5000 to 1000, they'll still have the same geographic coverage they have now.
Because of Convergence of Voice, mobile, Data and Video onto a single core network, BT will require a fraction of the equipment they currently have and although their Engineers will require a better skillset, BT will require far less Engineering resource. Agentic AI will also have a role in either replacing staff, or improving productivity. I've said all this before, but some people seem to forget where the saving's will come from.
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