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Vodafone says it would be shareholder in firm if BT Openreach were replaced Vodafone says it would invest if BT's broadband arm becomes separate firm
(about 4 hours later)
Vodafone has fuelled the debate about the future of BT, saying it would be prepared to become a shareholder in any new company owning the UK’s largest telephone and broadband network.Vodafone has fuelled the debate about the future of BT, saying it would be prepared to become a shareholder in any new company owning the UK’s largest telephone and broadband network.
Rivals are calling for BT to be split in two, with its Openreach division, which builds and maintains its network of copper and fibre-optic cables, spun into a separate company. Telecoms watchdog Ofcom is considering the idea in its first strategic review of the broadband market for a decade.Rivals are calling for BT to be split in two, with its Openreach division, which builds and maintains its network of copper and fibre-optic cables, spun into a separate company. Telecoms watchdog Ofcom is considering the idea in its first strategic review of the broadband market for a decade.
“We would be prepared to put equity in a vehicle that could deliver fibre to us and also other companies, whether it is an independent Openreach or a similar vehicle,” said Vodafone chief executive Vittorio Colao. “We would be prepared to put equity in a vehicle that could deliver fibre to us and also other companies, whether it is an independent Openreach or a similar vehicle,” said Vodafone’s chief executive, Vittorio Colao.
He was speaking at a trading update on Friday, which showed the pace of decline in Vodafone’s European markets is slowing. Service revenue – a key metric which excludes handset sales – fell 1.5% year on year in the three months to 30 June, down from a 2.6% fall in the previous three months. He was speaking at a trading update on Friday, which showed that the pace of decline in Vodafone’s European markets is slowing. Service revenue – a key metric which excludes handset sales – fell 1.5% year on year in the three months to 30 June, down from a 2.6% fall in the previous three months.
A condition for Vodafone’s investment in a national broadband company would be that all internet service providers, such as Sky, TalkTalk, Vodafone and the rump of BT, would have equal access to its cables. Colao said any new infrastructure should be of the highest quality, with fibre-optic cables running all the way to the doorstep of homes and businesses. Fibre to the doorstep allows speeds of up to 1,000 megabits per second. This compares to an average UK speed of 23 megabits per second.A condition for Vodafone’s investment in a national broadband company would be that all internet service providers, such as Sky, TalkTalk, Vodafone and the rump of BT, would have equal access to its cables. Colao said any new infrastructure should be of the highest quality, with fibre-optic cables running all the way to the doorstep of homes and businesses. Fibre to the doorstep allows speeds of up to 1,000 megabits per second. This compares to an average UK speed of 23 megabits per second.
BT last week warned a decision to split the company in two could lead to a decade of litigation. Instead, it is proposing to invest an estimated £4bn over ten years to upgrade its broadband service with a technology called G.fast. This would use new equipment on old copper wires, allowing download speeds of up to 500 megabits per second by 2025. Upload speeds – transferring data from computers to the internet – would be slower.BT last week warned a decision to split the company in two could lead to a decade of litigation. Instead, it is proposing to invest an estimated £4bn over ten years to upgrade its broadband service with a technology called G.fast. This would use new equipment on old copper wires, allowing download speeds of up to 500 megabits per second by 2025. Upload speeds – transferring data from computers to the internet – would be slower.
In a jibe at BT’s massive investment in football broadcasting, Colao said: “It’s important that the UK gets more fibre and not more expensive football.”In a jibe at BT’s massive investment in football broadcasting, Colao said: “It’s important that the UK gets more fibre and not more expensive football.”
In Italy, Vodafone has teamed up with rival mobile operator Wind to offer to buy a stake in the partly state owned fibre-optic company Metroweb. The Italian government is planning to invest €6bn to build high speed networks across the country. In Italy, Vodafone has teamed up with rival mobile operator Wind to offer to buy a stake in the partly state-owned fibre-optic company Metroweb. The Italian government is planning to invest €6bn (£4.2bn) to build high-speed networks across the country.
Vodafone is advocating using Metroweb as a vehicle for a shared national fibre infrastructure, and Colao said the same could happen in the UK. Such a project would avoid wasted resources, he argued, by deterring fibre companies from digging up the roads twice to build competing networks in the same neighbourhoods. “It’s better to share, and compete at the service level, rather than all build in the same areas.”Vodafone is advocating using Metroweb as a vehicle for a shared national fibre infrastructure, and Colao said the same could happen in the UK. Such a project would avoid wasted resources, he argued, by deterring fibre companies from digging up the roads twice to build competing networks in the same neighbourhoods. “It’s better to share, and compete at the service level, rather than all build in the same areas.”