BT cutbacks hit roll-out of ultra-fast broadband

BT denied it was delaying the rollout of ultra-fast broadband to millions of households after telling suppliers it had to ‘tighten’ investment plans.

Openreach, the telecom giant’s networking division, will focus on completing infrastructure in areas where it has already started building and delaying investments in new areas.

The company said it is still on track to reach 25 million homes and businesses by the end of 2026. But the £12bn program changes won’t speed up the rollout.

Clive Selley, Openreach’s managing director, told the Financial Times: ‘Getting value for money is what it’s all about.’

BT recently revealed it is ramping up its cost-cutting plans from £2.5bn to £3bn a year to shake off the grip of inflation.

Openreach has reached out to suppliers to say it would “tighten the timing of investments,” meaning it will not release capital for more than six months, according to a letter seen by the FT.

It read: ‘This necessarily includes an element of cancellation or suspension of any job you have received and/or validated.

“It is clear that there will be financial consequences for you if we carry out these plans.”

Openreach said it was not immune to inflationary pressures and aimed to be as efficient as possible.

Between now and April, it will focus on the areas where it has already started building rather than new areas.

A spokesman for the telecom group said: ‘We expect to build ultra-fast all-fiber broadband next year for more homes and businesses, not less, so we’re accelerating not slowing down.’