Shareholders concerned over impact of recession on BT fibre broadband rollout

A number of shareholders have expressed concern to senior BT officials lately over the impact that the recession could have on its plans to rollout fibre optic broadband.

Earlier this year communications giant BT announced that one and a half billion pounds was to be invested in the rollout of fibre broadband, with plans to provide access to around ten million homes by 2012. However, since these ambitious plans were revealed the nation has been hit by further financial woes and concerns about the recession, and this has sparked fears amongst BT shareholders.

According to a recent report shareholders have approached the CEO of BT, Ian Livingston, expressing concern over how the recession will affect the rollout and suggesting that BT may be better off keeping hold of the cash in the current financial climate rather than throwing it at the fibre broadband rollout.

Mr Livingston stated: ‘I have to tell you there are some shareholders who say ‘you know something, don’t do that, don’t do a whole lot of other things. That leaves you with a lot more cash and cash today is worth a lot more than cash in a few years’ time’.’

Another BT spokesperson said: “The project isn’t at risk because of the recession. There’s nothing that is affecting that investment decision at this moment.” However, he said that given the current climate he could not say for definite that the recession would not affect the rollout in some way, such as through a reduction or delay in the building of new homes and offices in the UK.

One research analyst said that BT broadband would benefit from going ahead with its rollout plans despite the recession, as this would put the company ahead of its competitors, enabling it to reap the financial rewards. He said: “If they invest now they will be in a much better position in the long run.”