Recession won't hit BT £1.5bn fibre broadband plans

BT's plans to roll out next generation super-fast broadband across the UK won't be affected by the economic situation, despite concern from some shareholders.

BT announced in July that it was to invest £1.5bn to upgrade its network to bring fibre to 10 million homes by 2012.

It was reported last week that some shareholders had expressed concern about the plans to BT CEO Ian Livingston, suggesting the organisation should keep hold of its cash instead.

But a BT spokesman told silicon.com: "The project isn't at risk because of the recession. There's nothing that is affecting that investment decision at this moment."

He added however that it would be wrong to say for sure that the project would be "completely unaffected by the recession".

If plans to build new homes and offices around the UK are delayed or canned, for example, it could impact the amount of residences that would be included in the rollout by 2012.

When BT announced the plan it said it would need Ofcom to change the regulatory environment to ensure it could make a return on its investment.

The spokesman confirmed to silicon.com that talks between BT and Ofcom about the issue are ongoing.

Forrester Research analyst, Ian Fogg, said BT would do well to stick with its plans as it will reap the rewards as competitors lag behind.

"If they invest now they will be in a much better position in the long run," he told silicon.com.

He added that all the reasons that make the rollout of next-generation broadband important to BT and the UK still apply, despite the economic downturn.