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“ Fleccy - the point is they are investing in 30 huge state of the art, city centre office centres.”
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No, this not true.
They are reducing the number of UK offices from 30 down to 7 regional centres of excellence.
BT/Openreach are streamling every aspect of their businesses, and ploughing everything into the FTTP build.
"O2/ Virgin mediaMon 23:24
The new company is apparently valued at £31 billion for a company with lower revenues and market share than BT. There are lots of complexities that may contribute to this difference I know but how can it possibly be worth three times the BT market value? I must be missing something , appreciate hearing a rational explanation from anyone how the two can be reconciled."
I agree, BT is worth much more than these two companies.
Can anyone explain why BT is value so low?
"guys been looking at bt for a while..... just sold holding in rmg. is this worth a punt? appreciate your views"
I think a quid is great value for BT, but it might be months or a few years before it doubles.
If you're prepared to hold them for that time frame then I say buy.
"The BT share price has bombed 74% in 5 years. Are you saying that in 5 years time the price might be back where it was 5 years ago? Love the super optimism here."
In 5 years time, Openreach will have insalled at least ten million more FTTP.
They are selling buildings, consolidating control staff and premises, and maybe some of the 5,000 exchanges they have.
The pension deficit will be reduced and every other fibre provider will be renting our infrastructure.
There will come a time when BT will reap the huge benefits of FTTP. That's when the shares will be worth x2, x3 or maybe x5 what they are now.
Time will tell.
Openreach have just announced £12Bn funding for contractors to provide FTTP throughout the UK.
Once the infrastructure is built, it's just pure profit.
Buying shares just now for a quid, in three or five years time, at least treble their value
"Thanks for that. What are your views on Technology around GPON and the combination of continuous shared broadcast wavelength downstream with burst data on a different wavelength upstream. I assume the ONT's continually monitor the upstream wavelength to ensure two ONT's don't transmit at the same time?"
I have no view on this as that is not my remit.
Since you work for Openreach Zico, i assume you're familiar with technology around GPON and also the rate of FTTP rollout?
I read up on GPON recently and find it quite interesting. I have experience of working on point to point DWDM, but was quite surprised at the methods used with GPON.
I'd be interested to read your views on the method used and opinions on optical path limitations, versatility and costs?
FTTP is ahead of schedule, as the more we do the more efficent we become. That and the lockdown with reduced road/ped traffic has made things much easier.
But business fibre revenue has suffered as millions are now homeworkers.
I would bet my mortgage on no BT dividend for a good few years.
Zico72 - What evidence do you have of higher fault rates and why, if they are at all, are they rising? I have read and seen nothing to that effect. And what are the 'many more issues facing Openreach' that we don't already know about. I'm intrigued to know.
I work for Openreach.
The wet weather causes more than double normal fault rates.
The other issues are confidential.
Some decent posts from my buy & hold subject, good to see. One other thing to bear in mind here,,, at £1 if you buy and just hold into this solid coy with future prospects (and a 7.7 divi next year)
Due to Covid and falling revenues, higher fault rates and many more issues facing Openreach, I seriously doubt BT awarding dividends next year.