BT loses 126,000 broadband customers in three months

Photo: Kin Cheung/AP

BT lost 126,000 broadband customers in three months due to increased competition from competitors.

The telecoms giant's customer base dwindled in the quarter to June as rival providers race to roll out fiber-connected broadband networks and phase out legacy copper lines.

The former state monopoly said it expects a base broadband access will drop by about 400,000 for the full year.

BT, the largest player in the market, said its fiber network now covers 11m of sites, which is 44 percent of the way to reach the target. 25 million homes by the end of 2026.

However, the company faces stiff competition from competitors including Virgin Media O2 and dozens of smaller firms such as Cityfibre, which offer fast connectivity at lower prices.

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Despite the downturn, BT reported higher revenues and profits in the three months to the end of June as higher prices offset customer losses.

The group reported an 11% increase in pre-tax profit to £536m, while revenue rose 4% to £5.2bn.

Along with other telecommunications providers, BT in April increased prices by almost 15%, which led to lower inflation. Ofcom's regulator is currently investigating whether the company has warned customers of its EE and Plusnet subsidiaries of impending price hikes.

In addition to raising prices, BT has also stepped up efforts to cut costs, announcing plans to cut 55,000 jobs by the end of the decade, a fifth of which will be replaced by artificial intelligence.

This will happen later. by the end of 2025, the company has increased its savings target from £2.5bn to £3bn.

These figures come at an uncertain time for BT, which is on high alert for a takeover led by major shareholders Deutsche Telekom.

The company has also stepped up its defenses against French billionaire Patrick Drai, who increased his stake to 24.5% through his investment company Altice.

Mr. Drai, whose empire has been rocked by a major corruption scandal in Portugal. , is reportedly considering raising its stake again to the 30% threshold at which it would be required to make a formal takeover bid.

However, an Altice spokesperson insisted that he did not intend to make a bid for acquisition and support the group's strategy.

Uncertainty was fueled by the confirmation this month that CEO Philip Jansen will step down within the next 12 months.

Mark Allera, Head of Consumer Division BT is seen as the leader to replace it.

In a statement, Mr. Jansen said: “We have started the year well in a market that remains very competitive. .

«We continue to transform the entire group and while there is still much to be done, it is clear that our strategy is working and BT Group is set to succeed.»