BT Stock Rises as Openreach Expands Copper Switch Initiative

Jordan Hartwell

ago 2 hours

BT Group plc’s stock has experienced a significant rise recently, marking an increase of about 1.7% to reach approximately 182 pence during mid-morning trading in London. This uptick comes on the heels of important news regarding Openreach’s initiatives impacting the telecommunications landscape.

Openreach Expands Copper Switch Initiative

Openreach has introduced a substantial expansion of its “stop sell” fibre migration program. The initiative now includes 132 additional exchanges, which will affect around 12.5 million properties across the UK. The aim is to transition customers from the outdated copper infrastructure to modern fibre technology.

Target for Network Transition

By January 31, 2027, Openreach plans to discontinue the ageing Public Switched Telephone Network (PSTN). This analogue system currently supports traditional landline calls, and its retirement is pivotal in facilitating the shift to digital phone services via the internet.

Commitment to Fibre Upgrades

James Lilley, the Managed Customer Migrations Director at Openreach, stressed the importance of this initiative. He described it as “a vital step in accelerating the UK’s transition to a modern full fibre future.” BT’s CEO, Allison Kirkby, also highlighted fibre upgrades as integral to the company’s future strategy. This approach aims to alleviate financial pressures once the current phase of heavy investments concludes.

Financial Outlook and Upcoming Trading Update

In their last update, BT reaffirmed its plans to enable 25 million fibre-enabled premises by December 2026. The company is also targeting £2 billion in free cash flow by March 2027, despite fierce competition in the broadband sector. Investors await further details during BT’s upcoming trading report scheduled for February 5.

Regulatory Considerations

As the telecom sector transitions to digital services, regulatory bodies like Ofcom are maintaining a focus on customer protection. They aim to mitigate disruptions encompassing issues such as emergency call services and potential power outages. This regulatory vigilance signals the importance of ensuring a smooth transition for consumers.

Current Stock Price: 182.05 pence
“Stop Sell” Initiative: 132 exchanges added
Properties Affected: Approximately 12.5 million
PSTN Shutdown Deadline: January 31, 2027
Target for Fibre-Enabled Premises: 25 million by December 2026
Free Cash Flow Target: £2 billion by March 2027

With increased attention on BT’s upcoming financial updates and strategic decisions, investors and market analysts alike are keenly watching the developments as the company seeks to solidify its position in the evolving telecom landscape.