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455,000 net fibre based broadband additions by Openreach
Thursday 07 May 2015 09:06:55 by Andrew Ferguson

The increasing availability of the GEA-FTTC and GEA-FTTP services is showing with record demand for fibre based broadband services from Openreach who now have connected around 19% of UK homes as 4.5 million have actually ordered one of the services. This is from a footprint of over 22 million homes passed.

The financial results for the BT Group for the quarter and year ending 31st March 2015 will make good reading for shareholders as the proposed full year dividend is 12.4p up 14% on the previous year. In terms of broadband numbers the last quarter was a record one for fibre demand (455,000 new connections in quarter, with 266,000 retail customers) and this is not just people upgrading, as the physical line base grew by 215,000 and some 248,000 broadband customers were added over the Openreach local loop (49% aka 121,000 via BT Retail).

Capital expenditure for the year was £2,326m (Openreach £1,082) with net grant funding of £392m (grant figure for 2013/2014 was £126m). The grant funding reflecting actual money received by the BT Group through the BDUK projects and Openreach capital expenditure increased by 3%, with the slow down as the commercial roll-out winds-up being taken over by work on the BDUK projects and the increasing labour costs as the pace and complexity of the BDUK programme continues to deliver. One reason for the extra complexity is that the commercial fibre roll-out ignored Exchange Only lines but a good deal of work is going into either adding a VDSL2 cabinet or in some cases rolling out FTTP.

While the financial results are positive over Ofcom meeting some 60 minimum service levels Ofcom have set, this is not always apparent for people ordering migrations and new lines, as it is not uncommon to find people talking of 3 or 4 weeks for a migration or upgrade from ADSL2+ to fibre, we have seen new lines take even longer. Of course this might just be a reflection of the record number of sign-ups or regional issues, but it is an area to keep an eye on.

When the new Gaining Provider Led migration process launches on 20th June it will be interesting to see what happens, the new process while simpler with its 10 day notification period will not help the time for migrations to happen but the larger providers may see a rise in churn levels as they are not allowed to pro-actively pester customers with retention deals.


Posted by TheEulerID about 1 year ago
The financial results aren't wholly good. Total turnover is 2%, and the increased profit comes from an 8% reduction in operating costs. This has been a long term trend and cannot, of course, continue for ever.
On FTTC, given national average take up is 19%, including VM areas, it's surely extremely likely that BDUK areas will all go above the oft-quoted 20% claw-back threshold.
Posted by ValueforMoney about 1 year ago
The state aid receipts of £392m (cash) from BDUK are an eye opener.
Given the NAO have identified low costs, where is BT capital contribution. There is no notes so no liability must be expected, which is odd given the £750m pomised.
Posted by TheEulerID about 1 year ago
The accounts show Openreach capital investment of a little over £1bn in the 12 months. Unfortunately it isn't broken down, so just how much went on NGA investment is difficult to say.
Posted by TheEulerID about 1 year ago
For those with time on their hands, the BT results webcast is well worth watching, including the Q&A session. Key points.

The 19% FTTC penetration figure is almost at the business case target way ahead of schedule. Note, however, a hint that the effective payback period will have to be shorter due to

BDUK claw-back payments are a certainty. is expected to be available to the "vast majority", not just the majority.

Capital expenditure run rate is expected to be broadly flat, even with roll-out.

BT Sports pays for itself withint BT Consumer.

Posted by TheEulerID about 1 year ago
oops - forgot the link.
Posted by Michael_Chare about 1 year ago
The 19% take up for fibre broadband is certainly good news and it will be nice if the government get their money back,just so long as the don't spend it on HS2.

I wonder how much of the fibre take up is due to BT's purchase of fottball TV rights.

Posted by ValueforMoney about 1 year ago
I was hoping the reference to clawback would include a reference to the £750m or c£350m capital contribution to BDUK phase 1, but nothing.
Posted by fastman about 1 year ago
HS" is fundamenetal to rebalacning the UK and also ensuring we can free up lorries of road such as M1 and M6, Michael sport drives fibre in a number of Ways which affects different providers Quad play is not the way forward, phone, broadband, TV & Mobile from one provider,So if a provider wont give you fibre as that eats in to their margin , you move, providers such as sky who have much more reliance on Sport now offering fibre to maintain the quad play customer so sport is important but no primariliry for the reasons you might think.,
Posted by fastman about 1 year ago

Imteresting that you now have no choice and are beholdent to a monopoly provider which no Service provider choice
Posted by Michael_Chare about 1 year ago
@fastman If your are referring to me, I could revert to a BT Openreach based service should I want to. I would think that my position is similar to someone with a Virgin service but without the TV element.
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