The BT Group PLC rollout of faster fibre broadband, via its Openreach infrastructure arm, is being slowed down as it looks to save costs and the economy judders into a recession.
Openreach has told suppliers that it is going to “tighten the timing of investment” in fibre as seeks to keep a lid on costs amid ongoing high inflation, according to a FT report.
Some jobs will be cancelled or suspended, suppliers were informed, with a "financial impact to you" as the plans are pushed through.
Openreach will focus investment on completing roll-outs at partially-covered locations and will postpone roll-outs in new locations.
Currently there is fibre-to-the-premises (FTTP) coverage 9mln premises, with an additional 6mln backlog that is partially completed, according to analysts.
At the start of November, BT signalled further cost-cutting measures were needed to deal with mounting inflationary pressures, while broadband customer numbers plunged 89,000, which was partly blamed on strikes.
BT boss Philip Jansen said the increasing inflationary pressures meant the board had increased its full-year 2025 cost-savings target by from £2.5bn to £3bn to help fund the rising cost of building its fibre network.
“Given the current high inflationary environment, including significantly increased energy prices, we need to take additional action on our costs to maintain the cash flow needed to support our network investments,” Jansen said.
Days later, he suggested the group could offer workers more pay to resolve the long-running dispute over salaries, telling staff on a 'town hall' video that the government's energy bills support scheme could allow an increase to pay.
Analysts at Jefferies said the FT story "is misleading", with a detailed examination of the various FTTP backlogs and capex implications.