BT Group, the UK’s leading telecommunications provider, has announced a significant acceleration in its fibre broadband rollout, increasing its build target by 20% to reach an additional 5 million UK premises by the end of the 2025/26 financial year (FY26). This ambitious expansion aims to extend BT’s full-fibre network to a total of 25 million premises by December 2026, up from the previous target of 20 million. (newsroom.bt.com)
Current Progress and Achievements
As of May 2025, BT’s Openreach division has made substantial strides in its fibre deployment:
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Network Coverage: The full-fibre network now spans 18 million premises, with over 6.5 million connected customers. (reuters.com)
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Build Rate: Openreach has achieved a record build rate, passing 2 million premises with Fibre-to-the-Premises (FTTP) in the past year. (newsroom.bt.com)
- Customer Demand: The take-up rate for FTTP services has reached 35%, indicating strong consumer interest and adoption. (newsroom.bt.com)
Strategic Rationale for Accelerated Rollout
The decision to increase the fibre build target is driven by several strategic factors:
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Regulatory Support: Favourable regulatory decisions, such as Ofcom’s Wholesale Fixed Telecoms Market Review, have provided clarity and support for BT’s fibre expansion plans. (newsroom.bt.com)
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Government Incentives: The UK government’s recent tax super-deduction scheme has offered financial incentives, enabling BT to invest more aggressively in infrastructure. (newsroom.bt.com)
- Operational Efficiencies: Openreach has demonstrated the capability to build fibre networks faster and at a lower cost, enhancing the feasibility of an accelerated rollout. (newsroom.bt.com)
Financial Performance and Outlook
BT’s financial performance reflects the success of its fibre strategy:
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Earnings Growth: The company reported a 1% increase in core earnings for the fiscal year ending March 31, 2025, reaching £8.21 billion, supported by strong demand for fibre connections and operational efficiencies. (reuters.com)
- Free Cash Flow: BT achieved a 25% year-over-year increase in free cash flow to £1.60 billion, reinforcing its financial position and capacity to fund the expanded fibre rollout. (reuters.com)
Implications for the UK Broadband Landscape
BT’s accelerated fibre rollout is poised to have several significant impacts:
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Enhanced Connectivity: The expansion will provide high-speed, reliable broadband access to millions more homes and businesses, supporting digital inclusion and economic growth.
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Competitive Dynamics: The increased coverage may intensify competition with alternative network providers (altnets), who have also been expanding their fibre networks. However, BT’s established infrastructure and customer base position it strongly in the market. (ft.com)
- Job Creation: The accelerated build is expected to create up to 7,000 new jobs, contributing to employment and skills development in the UK. (newsroom.bt.com)
Conclusion
BT’s decision to increase its fibre build target underscores its commitment to enhancing the UK’s digital infrastructure. By leveraging regulatory support, government incentives, and operational efficiencies, BT is well-positioned to meet its ambitious targets, delivering faster and more reliable broadband services to a broader segment of the UK population.
