BT Openreach Sees Decline in Broadband Customers Amidst Competitive Market

BT Openreach has reported a loss of 210,000 broadband lines during the December quarter of its financial year. This decline is an improvement over the previous quarter, which saw a loss of 242,000 customers. Despite this reduction, BT anticipates losing approximately 850,000 broadband lines by year-end, slightly less than its previous estimate of 900,000.

Allison Kirkby, CEO of BT, indicated that as competitor networks downsize their expansion plans, the company remains committed to rolling out its full-fibre connectivity. The telecom giant aims to connect 25 million homes to its faster network by the end of next year, up from over 21 million currently connected.

BT is navigating a challenging landscape marked by competition from alternative network providers, many of which have halted their fibre expansion due to financial pressures. These market dynamics have pushed consumers toward mobile tethering for internet access, impacting BT’s customer base.

Despite these hurdles, Kirkby expressed optimism for future growth, noting that the trajectory of broadband customer numbers is poised to improve over time. The company has been cutting costs and focuses on enhancing its core consumer business to restore investor confidence.

In its latest financial results, BT recorded a 4 per cent decline in revenue, amounting to £5 billion for the three months ending in December. Adjusted earnings before interest, taxes and depreciation were down by 1 per cent at £2.1 billion, reflecting a weaker performance in its business-to-business division.

BT’s operations are undergoing a transformation, with the international sector being separated into its own business unit. These strategic changes are expected to bolster free cash flow in the forthcoming years, moving from £1.5 billion to an anticipated £3 billion by the end of the decade. The company aims to maintain its position as the UK’s largest broadband provider, despite ongoing challenges in the telecoms market.