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The unions (general, wider) have achieved a lot over the decades, we have better and more equal levels of pay, better working conditions, decent annual leave, much improved working conditions, etc etc. But there is only so far the unions can justify themselves when lots have been achieved. On the flip side, who knows, we might still have a car industry if it wasn’t for such heavy handed union leaders justifying their own existence. Some unions seem to think they are still living in the 1960s, and need to have a reality check. We’re about to enter into one of the biggest economic challenges in over 70-100 years, and we all need to pull together get our heads down and get through it.
An industry source says an operator could buy a failed broadband builder out of administration and run the network without the need to make immediate changes.
One executive says such is the market's confidence in the sector that it was more likely greater sums of money would flow into so-called alt-nets in the coming months, shielding them from the impact of commercial pressures.
An Ofcom spokesman said the regulator was keeping a close eye on the broadband market: "In the unlikely event that a network suddenly failed and ceased to provide services, we would work with alternative suppliers to help customers get reconnected as quickly as possible.
"This could be through Openreach or an alternative provider, depending on the circumstances.”
Jarlath Finnegan, the chief executive of Giganet, which is attempting to connect 500,000 homes and businesses through its own fibre build and selling access to CityFibre and Openreach's network, remains confident of his company's prospects.
"There will always be winners and losers, but in the main these investments are built on sound principles," he adds. "The regulator must ensure the market continues to support a more diverse and competitive sector which drives up standards and benefits the consumer."
However, James Barford, of Enders Analysis, gives a more sombre assessment. The large alt-nets he has analysed remain stuck in the red.
"Some of them may start to run out of money. They will all have a certain amount of debt funding, and there will be covenants on that debt, which will be the trigger point,” he says.
"There is also an issue with consolidation. We are talking about companies that have got significantly less than 300,000 homes passed - some of them less than 50,000.
"Is it worth doing an acquisition for a company that is just a few weeks build time [for bigger players]? Some of them are just too small to be worth the bother."
A spokeswoman for the Independent Networks Cooperative Association (INCA), the body representing alt-nets, says the industry is going through a land grab.
"The regulation has created a window of opportunity that companies are maximising," she adds. "It just means people get fibre more quickly than they otherwise would.
"There may be operators that will not succeed - that is the nature of business, but at the moment there is almost no overlap by networks and these assets are really valuable."
She adds that INCA has approached Ofcom about creating contingency measures among alt nets should a network provider fail.
Like all gold-rushes of old, there is always the risk that some fortune-seekers will be left nursing losses - the question remains as to how many broadband builders might fall.
While Ofcom's measures to stoke competition have proved successful, building blocks must now be put in place to ensure customers benefit from rich rewards of full-fibre, without an over-reaching broadband network taking them offline.
https://www.telegraph.co.uk/business/2022/05/28/broadband-push-lays-ground-modern-day-gold-rush/
After declaring war on Britain's sluggish broadband speeds, Boris Johnson has had no shortage of corporate crusaders taking up his fight.
The Prime Minister's mission to upgrade most of the nation to gigabit connectivity by 2025 has prompted a modern day gold-rush led by some of the world's wealthiest institutions.
Private equity, sovereign wealth and pension funds have furnished as many as 100 broadband network builders with billions of pounds of investment in their hunt for financial returns that could span generations.
Freedom Fibre became the latest smaller supplier backed by infrastructure investors, announcing a £100m funding boost last Tuesday ahead of plans to upgrade 2m premises in the North West to faster full-fibre broadband.
After decades of market domination by BT's Openreach, the competition has never been stronger. But after helping to open up the market to a wave of telecoms minnows, Ofcom is preparing to protect customers from those network builders that reach breaking point.
The Telegraph revealed last week that the regulator approached BT to understand how it might shoulder thousands of customers if broadband builders collapse under competitive pressure.
There is a growing sense of unease that the odd failure among small suppliers may multiply and prompt consolidation across the industry. Such concerns come amid a souring commercial backdrop for all companies, as surging inflation makes the costs of labour and equipment more expensive.
Some anticipate a repeat among broadband builders of the merger spree that swept through cable operators in the nineties, leading to the creation of Virgin Media.
Already, there are examples of stress. In December, small network builder Swish Fibre picked People's Fibre out of administration after it succumbed to pressure from competitors.
Such is the level of competition that Lutz Schuler, the chief executive of Virgin Media O2, warned in November that the nation's broadband plans were close to a population three times as big as the UK.
Insiders have eased fears that bankruptcies would lead to internet blackouts, however, as physically switching customers from a failed provider may not have to take place.
GCHQ!
“ Maybe I’ll go on a 4 week holiday. See you all in 30 days xx”
I’ll book my NHS induced coma for six months, wake up at Christmas when it’s £5 a share. Woo-Hoo!!
Does Drahi need to own BT to set direction, if he gets hold of DTs shares, acquires a seat on the board, has 30% of the votes, he can easily drive his mandate from within, all he needs is 21% of other share holding votes. Of course when the 30% is achieved he has to make a bid, but that will be rejected of course. So we are back to Drahi with seat on the board and 30% of shares setting direction and trying influence the other 21%…….
I suspect this is being driven by BT, BT don’t want a takeover, nor does the Gov want it either on the grounds of security etc. On a basis of let’s work together and as June is approaching this makes sense.
https://www.telegraph.co.uk/investing/funds/plunging-us-stock-market-will-hit-british-investors-fight/
4got to mention it was the DT.
I had to laugh at this piece earlier. After the journalist explained the S&P 500 had dropped 20% this year it would have some impact on London’s stocks. But there was a way to mitigate this……
“Investors should look at industries such as healthcare and telecoms, where revenues are not overly sensitive to the economy,” he said. “London has market leaders in this area such as GlaxoSmithKline and AstraZeneca. We own Spirent Communications, a telecommunications equipment provider.”
Couldn't even give a mention to BT, if you ever need any proof the media are biased against BT, look no further.
When BT closed the final salary pension scheme, practically all members became deferred. All except a few engineers who could opt for a hybrid scheme if it worked out for them. So these guys have a small active stake.
I’ll take 1.7p up at COP. Was better but given FTSE was well down today, that’ll do. Next milestone is June let’s see what will happen then, plus the market analysts and brokers need time to digest, all apart from Polo and chums.
Indeed Carrington. Every results eve, I feel like Dot Cotton in thinking Nasty Nick has changed and I see the best in him. Do I sell some shares and buy back next day when kicked by the market unfairly. Nope! as when I do, it’ll be the first time the market will have left them alone.
Be interesting to see what news BT gives on the pension as an update, I don’t expect much news on BT Sport beyond what was given some months ago. Fibre Rollout numbers will be favourable hopefully, cost savings should be on track or better. Only concerns are the usual revenue and bottom line numbers which market have used as a beating stick to punish share price, in recent years. I will be pleasantly amazed if share price increases on Thursday.
Yes everybody, final div is said to be 5.39p. This is what makes up the 7.7p. The 4.62p is the old int div where it was halved to 2.31p.
Well said Rod, and the market has seemed to ratified your sentiment.
Yep Fleccy you Nige I think, mentioned the £4b deficit a few times last year, seems to have some official credibility now, be interesting if BT will give further update in May based on current metrics outside the triennial review.
CityFibre has been going since 2011 in its current guise, so they’ve had 11 odd years to steal a march on OR or VMO2, on building fibre and on accumulating a fit for purpose workforce.
It’d be good if a Musk contemporary could see his/her way to offering $44b for BT. Given BT makes much more than the loss making Twitters paltry $6b revenue a year. Still onward and upwards, to May results.
“ What would you reinvest into?”
Pets at Home?
How many union officials does it take to change a light bulb?
None, they just sit in the dark complaining about capitalism. But come the light-bulb revolution everything will be brighter.