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BT’s capex plan defends Openreach while looking ahead to 5G

BT is promising to spend £6bn over three years in capital expenditure on its networks, split between the EE mobile arm and the Openreach wholesale infrastructure business.

Much of this is about convincing the regulator that it should not be forced to divest Openreach, and that its combination of wholesale, retail and mobile activities does not make it anti-competitive, or reduce its incentive to invest in services and networks. It also highlights some important trends, now BT is a converged operator once again. One is the increasing use of 4G, and future 5G, wireless broadband to support fixed broadband connections, improving the economics of reaching every citizen.

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