British Telecom hopes to cover nearly 95% of the country with LTE technology by spending 6 billion pounds or approximately $8.7 billion over the next three years in network expansion. This fund will also include spending on its Openreach broadband and EE mobile business.
“Customers want to be online wherever they are and we will be there for them. Our multi-billion pound investment plans will see both fibre and 4G reach 95% of the UK and we won’t stop there. The UK is a digital leader and our investment in ultrafast broadband will help it stay ahead,” says BT CEO Gavin Patterson.
The company had recently acquired EE for 12.5 billion pounds ($18.1 billion). EE was earlier a joint venture between Deutsche Telekom and Orange. EE has significant 4G presence in the country and its acquisition will provide BT with a solid foundation to offer innovative 4G services.
“The integration of EE is going well and we now see the opportunity to deliver more synergies than we originally expected, and at a lower cost,” Patterson said. “And we are reorganizing our business to better serve customers both in the UK and internationally.”
BT recorded a net profit of 1.14 billion pounds in its fiscal Q4 ended March 31, an increase of 11% when compared with the same time period a year ago. Revenue recorded an increase of 22% to 5.65 billion pounds. EE’s quarterly revenues totaled 1.05 billion pounds, while Openreach’s revenues grew 2% to 1.29 billion pounds. EE claims to have 30.6 million mobile customers.
BT was recently in news for starting a new business structure, which divides its business into six parts: Consumer, EE, Business and Public Sector, Global Services, Wholesale and Ventures and Openreach. The company’s Global Services unit generated maximum revenue of 1.75 billion pounds ($2.5 billion) in Q4 while its BT Consumer business recorded revenue of 1.19 billion pounds ($1.17 billion) in the quarter ending March 31.