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Recession may delay BT fibre-optic network

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Recession may delay BT fibre-optic network

Shareholders advise firm to maintain its cash reserves

BT’s CEO Ian Livingstone has confirmed that a number of company shareholders have advised him to abandon a £1.5 billion plan to bring fibre-optic broadband to ten million UK households.

The move from copper wiring to fibre-optic cables would increase broadband speeds to up to 40 megabits per second – over twice BT’s current maximum connection speeds.

“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’,” Livingstone told the Guardian.

“I personally believe if it is the right thing to do as a 20-year decision it is the right thing to do,” he continued. “But we need to have the environment in which our shareholders feel there is a good chance of us making a return. If we cannot have that environment this is not the time to be taking on sure-fire losses.”

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Forget the shareholder

posted by amused Nov 17, 2008 at 3:20 pm
1

It is time to forget what the shareholders think it is time to get this countries imformation super highway back up where it belongs.
We need this to keep jobs in the country & bring new jobs along with it.
The shareholders have to look even longe ahead than they are at the moment as this recession is going to be around for a long while & anyhting that will stimulate growth even if it is in the long run has got to be good.

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Re: Forget the shareholder

posted by John Nov 17, 2008 at 4:36 pm
2

BT was privatised to bring innovation and to improve things for the country. The shareholders who are getting rich from what initially belonged to he taxpayer would do well to bear this in mind.

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Re: Re: Forget the shareholder

posted by Typical Nov 18, 2008 at 10:53 am
3

These idiots won't support bringing our comms infrastructure into the 21st cenrury?
Surely their short term savings would be outstripped by the long term profits. When their own broadband connection slows or comes to a grinding halt they would be the 1st to complain, Yet they and other small minded, penny pinching fools would be directly responsible for impeding our technological development, keeping our businesses out of sinc with the restof the world and ultimately putting businesses off setting up here ! Scrooge could learn from them!!

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Re: Re: Re: Forget the shareholder

posted by Alan Nov 18, 2008 at 11:29 am
4

Good investors see the wider picture and the boundless advantages this development brings bisiness as well as the domestic market. Fibre Optics is the way forward bring our telecomms and broadband into the modern world, these people can't see beyond their noses. Short term Profit is all they want. They will lose out on long term profits and gains just to save a few pennies now. GOD GIVE ME STRENGTH!!!

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