BT rejects local loop leasingBT has announced its dismissal of an £8bn bid for a buy out of the Local Loop from a consortium, Earth Lease, who were planning on leasing the loop back to BT and other Telco operators who were interested. The deal was planned to introduce a short term money flow for the indebted BT who have recently run in to problems.
Publicly BT has denounced the deal claiming that "It makes no business sense whatsoever".
Earth Lease had promised to invest an extra £500m in the roll out of broadband services and substantially lower the cost of leasing copper for ADSL, in a hope that it might push up the number of DSL subscribers from an estimated 70,000, just 7% of the equivalent in Germany, to 2m within 18months.
Although BT has claimed it has broken off talks, the consortium still holds hope that talks will continue with senior management of BT.