BT’s Openreach might lose its position as the UK’s dominant broadband network in 2023 and that presents a considerable threat to the telco, according to Deutsche Bank.
Latest data from regulator Ofcom notes that in aggregate some 1.5mln unique premises were passed by full-fibre networks in four months to the end of August 2022.
Deutsche Bank calculates that the alternative networks (or alt nets) build rate of 1.2mln homes (Openreach 1mln) puts them on track to pass 4mln homes in 2022 and to take total alt-net coverage to around 9mln homes by year-end compared to 5mln at end 2021.
“The marketing and filling of these new networks, which collectively are likely to exceed the size of BT Openreach's in early 2023, represents a considerable threat to BT which has recently proposed to lower its wholesale prices.”
‘Hold’ BT is the Deutsche Bank view.
Shares were unchanged at 112.9p.