BT share price (BT.A): Company teams up with Virgin Media to defend fibre broadband position

on Mar 31, 2015
Updated: Oct 21, 2019
Listen

BT Group Plc (LON:BT.A) and Virgin Media have joined forces in trying to convince the regulator that opening up high-speed broadband networks to rivals will have a negative impact on the UK’s broadband market. The two companies had written a letter to Ofcom, arguing that such a move would result in higher prices and lower investment in the UK, the Financial Times reported yesterday. According to the report, the letter, which has been seen by the newspaper, has also been signed by regional broadband provider KCom.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

In the letter, the companies said that any regulatory changes to the business broadband market could lead to higher prices as well as “significant regulatory uncertainty, undermining the return on sunk investments and therefore disincentivising future infrastructure investments”.
Rival telecoms companies such as Vodafone Group Plc (LON:VOD) and TalkTalk, have complained about BT, claiming that the former state monopoly has unfairly used its ownership of the UK’s fibre broadband network to hinder their ability to sell data capacity to big businesses and consumer broadband providers. These companies want to obtain “dark fibre” access, which would allow them to control the BT cables they use to provide Internet to their clients. In their letter to Ofcom, BT and Virgin argued that “allowing multiple operators to tamper with the physical network will cause service faults for customers”.
The letter comes amid an ongoing once-in-a-decade Ofcom review of the UK’s digital communication sector, which has provided BT rivals with an opportunity to reiterate their concerns about BT’s dominant position in the market. The complaints have become much more vocal since the announcement earlier this year of BT’s £12.5-billion acquisition of the nation’s largest mobile network, EE. Some competitors have urged Ofcom to consider breaking up BT by spinning off its infrastructure unit Openreach into a separate company.
In today’s trading, BT shares were down 1.4 percent at 441.80p, as of 11:32 UTC. The stock has risen just over 10 percent since the start of the year. The company’s market capitalisation currently stands at neatly £37 billion.
As of 13:11 BST, Tuesday, 31 March, BT Group plc share price is 441.00p.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Services Stock Market Tech