Thursday, 18 June 2009

BT gains favour by ‘sticking to the knitting’

(By Richard Holway 9.00am 18th June 09) Further to my comments yesterday on Digital Britain I see there might well be hope for users like me who would find 2mbps too slow. A report in the FT today – BT aims to expand reach of super-fast broadband – says that BT intends that 40% of homes will have super-fast fibre by 2012 and possibly 90% by 2017 (just in time for my 70th birthday!)

I have long said that BT should ‘stick to the knitting’. Fixed-line telecommunications, and therefore broadband, IS BT’s knitting. Fixed line broadband can never be rivalled. As many said yesterday, “BT has physics on its side” as mobile can NEVER compete with that part of the market; streaming multichannel HD TV into the home.

All this has done the power of good to BT’s shares which have now (re) crossed the 100p line (105p yesterday). Rather better than the 70p of just a few months ago but still half the 210p share price they 'enjoyed' just a year back on 18th June 2008.

No comments:

Post a Comment