BT hits back at calls for a break-up and raises ultra-fast broadband target

BT has fended off calls for a break-up as it set out plans to deliver ultra-fast broadband to 10 million homes by 2020 — five years earlier than planned.

The FTSE 100 giant set out its vision for the future at a conference in the City as it fights back against threats to split it up by spinning off its network operator Openreach.

Rivals argue that Openreach is failing consumers with poor service and that BT has an in-built advantage because it owns the only company that is allowed to connect homes to the fibre network.

BT chief executive Gavin Patterson told the Evening Standard that the new target for ultra-fast broadband could be achieved within the existing capex budget of £2.3 billion a year.

Patterson also hit back at criticism from rivals who accuse BT of under-investing in the network and inhibiting the country’s digital expansion.

He said the existing industry structure had worked, making the UK one of the most developed internet economies, with the highest percentage of internet-dependent businesses.

“There is no example of separating the broadband company from the telecom operator in the world that has worked. We do think that it is the best thing for Openreach to remain separate but part of our company.”

He added: “For the past five years, the UK has been the largest digital economy in the G20, by percentage of GDP.

“We want to forge an ultra-fast future for Britain and stand ready to help government deliver the broadband speeds necessary for every property to enjoy modern-day internet services, such as high-definition TV streaming and cloud computing.”

Regulator Ofcom said earlier this year that it would consider separating Openreach from BT, as part of the biggest review of the communications and broadband industry for 10 years.