RE: BT bubbles16 Nov 2025 18:37
"We have a business unfriendly government and a BT BoD who can only see getting rid of assets and cost cutting as a way forward"
I'm not sure how to explain things to you in simple terms that you'll be able to understand. The cost cutting is actually cost savings, since the savings will be a benefit of BT's transformation to a fully converged optical network with the remaining legacy network laid to rest.
The PSTN network is power and resource hungry; It uses lots of electricity and requires lots of maintenance, with associated battery banks and aircon contributing to the high operating costs. All the coaxial DDF's will go as well as all the Engineers who don't retrain into other skillsets. Another plus is that less buildings are required once the PSTN network is retired, with the Exchange/building closure program leading to buildings reducing from nearly 5000 to around 1000.
The majority of the street cabinets aren't required with Passive Optical Networks (FTTP), unlike FTTC, so all the fibres will terminate in the remaining Exchange buildings and unlike telephone lines there's no requirement to supply 50V to the equipment (ONT) in the customers premise. The cost savings from ending the PSTN network will be big.
FTTP terminates on Edge routers in the Exchange buildings and these will then be connected via DWDM into the Core network routers. Modern Core router/switches converge and process all forms of data, so Voice Video and data, including mobile, will all be processed and routed in the same equipment, so much less equipment and less staff for monitoring and maintenance.
In summary BT will have a far simpler network with far less power and space requirements, and will require less staff to look after the network. Once all the above is completed BT's CAPEX bill will drop dramatically, that isn't forecasting it's common sense reasoning.
The reason I bring up Vodafone, when replying to PRK, is because he bailed out of BT and piled into Vodafone. Instead of just moving on he intermittently posts airing his distaste at the initial rise in BT's share price, it's possible he's a bit happier now Vodafone is also seeing recent share price rises.
There you have it bidboy, BT isn't cost cutting it's making cost savings.
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