Member Info for fleccy

I don't see Cityfibre going bust, since it's principal financiers are also the owners; What could happen is Cityfibre's expansion plans may be crimped, with the number of premises passed not increasing much from here. Even if a company like Cityfibre goes bust, the infrastructure and customer base still have value and will attract interest. The biggest threat to Altnets, is that they fail to sign up enough customers to cover operating costs.

Going off various media I've seen, Cityfibre have probably made a mistake by building their own infrastructure. Cityfibre could have entirely used PIA to achieve faster coverage at a much cheaper cost, as some of their competitors have, and used their cash pile more effectively. Just my opinion. Trooli CEO Andy Conibere reckons their average cost per premise passed is £200, which I don't get since they use Openreach PIA and it costs Openreach £250 to £300 per premise passed.

"26:10 thought the big consolidation was going to start last year it hasn't then I

26:15 thought it would start this year and we're now in August um there's been some trickles uh and things that have

26:21 happened but certainly no tsunami and I think it's probably important to understand why or certainly why I think

26:28 that it hasn't happened yet and uh to me this is you know this is all about

26:34 efficient operators so um certainly I know my background I know Jeremy who

26:39 visited me a long time ago between Community fiber and setting up nomia and uh and um I opened up to Jeremy and uh I

26:46 think you know I I believe that uh it's fair to say he took great inspiration from what we do and and you know

26:53 efficient operators are building at really efficient rates so let's pick and put a number on it it in the order of200

27:00 per premise pass oh wow that is low yeah inefficient operators um and perhaps"

https://www.youtube.com/watch?v=-HeKgrCBrbU

Please give me more money 🥺

https://www.msn.com/en-gb/money/other/bt-rival-warns-it-needs-more-cash-to-survive-as-debts-top-3bn/ar-AA1rz1Ng?ocid=finance-verthp-feeds

The trial ended on the 22nd March, so it's been over 6 months. Obviously it isn't clear cut, since Patourel's case is based entirely on BT making a voluntary cut in the price, after consultation with OFCOM. If the court rules in favour of Patourel, what's the point of OFCOM? Since BT is a highly regulated entity, shouldn't OFCOM decide on any punishment dished out against them.

Pointless speculating, it could just as easily be zero.

That's like saying a Schizophrenic is always right. Everyone's right until they're wrong, including Mr. Market

You should re-read my previous posts then Daniel.

Well I'll tell you how much we have invested in Lloyds, which is by far our largest holdings across the share dealing account and Isa's. We are currently holding 447,804 Lloyds shares with a book price of £263,846.12 and currently showing a paper gain of £44,464.38

Daniel you haven't answered my questions in my 22:24 post, is it because you're stupid and don't know the answer? Clearly you're a shallow thinker who's incapable of formulating plans, or opinions, which is apparent from your posting history. Good luck with your strategy of sitting behind your keyboard and doing nothing but moan.

Well Daniel I've tried to explain our position as simply as possible, which we believe is a good plan. Since you have no idea what our total investments are, within our ISA's or share dealing account, I'm not sure how you can form an opinion either way. Instead of accusing me of being on another planet, can you tell me what's wrong with what we're planning to do? Are you saying that we should just leave things as they are? Or are you saying we should sell the stock and just keep the cash? Or something else?

Dan I've said many times that my Vodafone investment is showing a paper loss, I haven't kept it secret. Offsetting a capital gain by realising a loss on something else, for tax purposes, is nothing new. Truth be told we want to reduce the income generated within the share dealing account and move as much investment as possible into the ISA's over the next 4 years, which ties in with my wife becoming eligible to receive her state pension. The intention is to sell all of the Vodafone and Lloyds stock in the standard account once Lloyds passes 64p; At that point the stock sales should give us a capital gain approaching £3000, we will then move £40,000 of that cash into the ISA's and reinvest the remainder back within the share dealing account, but in a different dividend paying stock. The way things stand at the moment we'll probably reinvest the £40,000 transferred into the ISA's back into Vodafone, but that could change dependent on various factors. The plan depends on Lloyds reaching 64p, but if it raced past 64p we'll likely wait to see how high it goes and only sell enough Lloyds stock to offset the Vodafone losses, plus realise a capital gain near £3000. Overall the plan is to maintain our dividend income and reduce my wife's possible future income tax burden.

Of course the current plan is dependent on Lloyds passing 64p and Vodafone remaining around the current price. We haven't set ourselves a time limit, just the 64p price bar for Lloyds. Should the stock prices drop from here, although it'd be disappointing we'd probably just go back to reinvesting the dividends.

"But I may end up making all my losses back, so I won't be selling anytime soon. Some people when they are losing go into a state of denial. I think fleccy is in the red with vod, the same as me"

Daniel I'm not in denial, Vodafone is by far our worst investment. If we decided to lock in our standard share dealing account Lloyds gain, by selling, which would mean a considerable capital gain charge, it'd be the Vodafone holding in there that we'd sell to offset any capital gains tax.

That said, I don't see Vodafone as a risky investment overall, and would then probably top up our Vodafone holdings in the ISA's which were bought at a far lower price.

Total voting rights showed a reduction of 376,638,216 for September.

https://docs.google.com/spreadsheets/d/e/2PACX-1vS0oSavIsBjHgD7k6NMyk7Z591Cm2IrevvLI-Jq95gOmESrOI0Vi_NhA8LIO9rMz90Y5zCOCoFuEItG/pubchart?oid=1812824850&format=interactive

https://docs.google.com/spreadsheets/d/e/2PACX-1vS0oSavIsBjHgD7k6NMyk7Z591Cm2IrevvLI-Jq95gOmESrOI0Vi_NhA8LIO9rMz90Y5zCOCoFuEItG/pubchart?oid=1451011517&format=interactive

Mole_man, stop making a mountain out of a mole hill. £11 Billion is actually less than the estimated combined investment, into both Networks, should they remain separate.

"The small print shows the operators are really talking about "combined capex spend," which inevitably covers more than just 5G. What's more, over a ten-year period £11 billion works out at just £1.1 billion annually, which is about £400 million ($528 million) less than Vodafone and Three collectively spent in the fiscal year before the deal was announced"

https://www.lightreading.com/5g/vodafone-and-three-merger-not-to-be-trusted-on-5g-says-watchdog

Https://www.theguardian.com/business/2024/sep/29/bt-recycling-deal-surplus-copper-cables

"BT has received £105m as an upfront prepayment for the sale of surplus copper cables from its old network which it is replacing in a £15bn rollout of high-speed full-fibre broadband to 25m homes in one of the UK’s biggest private national infrastructure programmes.

The telecoms company has struck a deal with a recycling company and received the sum after entering into a forward agreement to sell copper granules created from surplus copper cables that are being replaced by its new full-fibre network. The £105m transaction is the first of its kind"

"Copper is a valuable material that is widely used in datacentres as well as in electrical equipment such as wiring, wind turbines and motors.

At current market prices, 200,000 tonnes of copper could be worth about £1.5bn."

"Finally got my head round Quantum bits continually off and on"

If I'm understanding it correctly, the theory behind Qubits is that they are in a state of superposition until observed, superposition means that they're both One and Zero at the same time, and everything in between. When they program the Quantum computer Qubits into a circuit, to receive an input and produce a required output, they're effectively producing waves of probability within the computer and getting the most probable answer at the measured output; Effectively by measuring the output you're locking in the answer, and assuming you've programmed the Qubits correctly you should get the most probable correct answer. The waves generated within the computer leading to an incorrect answer should destructively interfere with each and cancel out, whereas the waves leading to a correct answer should constructively interfere and increase the amplitude of those waves.

QKD relies on observation changing the Quantum state of the Qubit (Photon) before it reaches its destination, this article explains it really well:

https://www.techtarget.com/searchsecurity/definition/quantum-key-distribution-QKD

Toshiba, and by extension BT, apparently use the BB84 T12 protocol.

"DV-QKD encodes quantum information in variables using a photon detector to measure quantum states. An example of a DV-QKD protocol is the BB84 protocol"

https://www.toshiba.eu/quantum/products/quantum-key-distribution/

Around 16 minutes in BT gets a mention in this video:

https://www.youtube.com/watch?v=1_gJp2uAjO0

Robleo that isn't what I'm saying; What I'm saying is that your overall capital and income position is what counts, with dividend income taking care of the inflation effect. We've invested over many years and consistently reinvested the dividends, so we've now built up a reasonably large retail investor holding with an annual tax free dividend income of around £25,000. The only reason our dividend income is tax free, is because my wife's a non earner and the income she earns in the standard share dealing account is below the tax threshold, the rest of the dividend income is split between our ISA's. We now only reinvest when the shares are cheap and we're currently sitting on the cash from this summers dividends.

When we first invested into our stocks the prices were much higher than they are now, the huge underperformance of UK stocks since has made it a no brainer to reinvest our dividends, probably doubling our holdings due to the cheap valuations. In the end it's about investor psychology, when dividend paying stocks are cheap I see it as an opportunity to reinvest and take advantage of the lower prices. Unrealised gains are nice to look at, but it's annual income that counts when you're paying your bills.

"Fleccy, so you are winning with Vodafone because you are losing with Vodafone"

We haven't lost if we offset losses in one stock against gains in another, reducing capital gains tax and using the proceeds to reinvest a portion in our ISA's, with the remainder reinvested outside of the ISA's. When it comes to winning and losing you play the hand you're dealt, whatever way you see fit.

Total returns are only real once you sell, unrealised losses and gains aren't capital affecting so they're simply noise. The way things currently stand, the HMRC is only interested in capital gains and losses, so if we decided to sell all our Vodafone stock in the standard share dealing account, and sold enough Lloyds stock to realise a overall capital gain of £3000, overall it's a gain and non taxable due to the current threshold; And we'll still have the dividends we earned while we still held the shares.

The difference between people who see paper losses and gains as real, and people like me who just see unrealised losses and gains as noise, is purely a state of mind; The bottom line is there's only two prices that count, the price you buy at and the price you sell at, and if you can bank dividends and offset losses on one stock against gains on another, you're laughing.

You're thinking of the FTTC street cabinets.

I don't know Erik, this is what BT said in 2002 about the deal:

"Profit on sale of property fixed assets

In December 2001, as part of a wider property outsourcing arrangement, BT completed the sale and leaseback of the majority of its UK properties to Telereal, a joint venture partnership formed by Land Securities Trillium and The William Pears Group. Around 6,700 properties were transferred totalling some 5.5 million square metres. The consideration received amounted to £2,380 million. BT has leased the properties back at a total annual rental commencing at £190 million and subject to a 3% annual increase. In addition, BT has transferred the economic risk on a large portion of its leased properties to Telereal in return for an annual rental commencing at approximately £90 million per annum. This is broadly equivalent to the current level of rentals. In February 2002, BT outsourced its property management unit to Telereal.

BT has the option to purchase the reversionary interest from Telereal

(i) when BT vacates a property at open market value

(ii) at the end of 30 years for the specialised estate (buildings of an operational nature such as telephone exchanges) at open market value or

(iii) if BT wishes to terminate all arrangements with Telereal at any time, in which circumstances BT would pay open market values for the property and compensation to Telereal covering funding costs and equity return.

BT can also re-acquire the reversion of the general estate (non-operational buildings such as offices and warehousing) at the end of the headlease term of 999 years. BT has the right to renew the lease of the specialised estate for successive periods which, in total, amount to 130 years. After 130 years, the freehold specialised properties revert to BT. The leases include normal commercial restrictions and convenants.

BT's divestment of its property estate will provide a ¯flexible approach to BT's office arrangements and building requirements. BT expects to reduce its property needs over time and the transaction allows BT to vacate properties covering approximately 35% by rental value of the estate, including existing lease ends, over the contract term without penalty"

Exchanges come under the "specialised estate" category and reversionary interest likely refers to the remaining Freehold interest.

https://www.bt.com/content/dam/bt-plc/assets/documents/investors/financial-reporting-and-news/annual-reports/2002/bt-annual-report-form-20-f-2002.pd

It could be that the property management costs reduce when BT removes equipment from the exchanges, but I'm only guessing.