BT share price: Group under renewed pressure to improve broadband services

on Mar 28, 2017
Updated: Oct 21, 2019

BT Group (LON:BT.A) faces fresh calls to improve its broadband service, The Telegraph has reported. The news came as industry regulator Ofcom fined the former telecoms monopoly for cutting compensation payments for delays in connecting high-speed business lines.

BT’s share price has slipped into the red in today’s session, having lost 0.52 percent to 323.25p as of 09:29 BST, underperforming the broader London market, with the benchmark FTSE 100 index currently 0.03 percent better off at 7,296.03 points. The group’s shares have lost more than 25 percent of their value over the past year, as compared with a near 20-percent rise in the Footsie.
The Telegraph quoted BT’s blue-chip rival Vodafone (LON:VOD) as accusing the former telecoms monopoly of slowing its upgrade to 4G mobile broadband, with the telco relying on BT’s division Openreach to connect many of its mobile masts.

“We hope this ruling will encourage BT Openreach to finally drop the unacceptable practices it has used to avoid paying compensation for late delivery of fixed fibre lines, which have impacted businesses across the country as well as our own 4G roll out,” a spokesman for the company told the newspaper.
The comments came as Ofcom fined BT £42 million over the weekend for misusing the terms of its contracts to cut compensation payments for delays in connecting high-speed business lines. The group will also have to pay as much as £300 million in compensation to rivals.
The 23 analysts offering 12-month price targets for BT for the Financial Times have a median target of 400.00p, with a high estimate of 580.00p and a low estimate of 270.00p. As of March 24, the consensus forecast amongst 23 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.
As of 09:49 BST, Tuesday, 28 March, BT Group plc share price is 322.95p.

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