Troubled BT still plans to pay for fibre broadband

 

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By Barry Collins

Posted on 28 Jan 2009 at 08:55

BT CEO Ian Livingston says his company still plans to proceed with its fibre broadband rollout, despite financial problems in parts of the business.

BT Global Services, the company's corporate IT services arm, is taking a ?340 million charge, sparking speculation that it might curtail BT's planned fibre rollout.

Asked if the write-down would harm overall investment, Livingston replied: "No, I don't think so."

"We still have strong plans to invest in fibre in the UK and also, actually, to still expand our global presence," he added.

BT plans to offer up to 40Mb/sec fibre connections to 10 million British homes by 2012.

BT has always stated that the ?1.5 billion investment hinges on favourable regulatory conditions, including a revised Universal Service Obligation, which is expected to be granted in Lord Carter's Digital Britain report this week.

The exchanges at Muswell Hill in north London and Whitchurch in Wales will be the testbeds for BT's fibre-to-the-cabinet (FTTC) services.