BT's bravery has earned the company rich rewards

 

Editorial
Thursday 07 May 2015 19:30 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

BT, it seems, is back, with a profit last year of £2.6bn, and a record number of broadband customers strengthening its hold on that highly competitive market.

It is something of a turnaround. Not so long ago, it seemed the game was up for what was once going to be a shining example of the power of privatisation, a pioneering company and a British institution – BT. When, in 1984, the Thatcher government started selling off chunks of what began as the Post Office Telephones division, BT was regarded as a world leader. By the turn of the millennium, heavily indebted and hit hard by the bursting of the dotcom bubble, BT seemed to have little future other than as a useful acquisition for better-managed foreign telecoms giants, often former state outfits themselves. It seemed a poignant end for the company many grew up with – Buzby, Maureen Lipman and JR Hartley included.

In recent years, BT’s management has shown a far surer touch. By far their most enlightened policy was to continue to invest heavily in the internet, via Open Reach, which continues to provide solid growth. Swallowing its pride, the firm is re-entering the mobile market, buying EE for some £12.5bn – a bold move, and one that will allow it to package up mobile services with fixed-line, TV and broadband.

The company also displayed considerable bravery in taking on Sky for a share of the lucrative Premiership football rights, deftly getting into the TV market. Its customer service seems to have improved along with its technology. Once again, we seem to be learning to love BT: oddly, with its strong presence in broadband especially, it is becoming almost as ubiquitous as when it was a nationalised monopoly.

Still, it is only fair to mention that starry-eyed shareholders who bought in at the height of the tech boom – at £15.13 a share in January 2000 – will feel a little short-changed at the closing price of £4.53. That’s what you call a wrong number.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in