BT has said it plans to bring direct fiber connections to 25 million buildings by the end of 2026 following a government tax deduction.
Thee company was given a “super deduction” on its tax, which means that it will only pay “minimal” corporate tax in the UK for years to come.The new commitment to fiberglass 25 million properties means an increase from their previous target of 20 million by the end of 2026.
In the Conservative Party’s manifesto for the 2019 elections, Prime Minister Boris Johnson said that the UK will have universal fiber broadband, although the plan was criticized by MPs as unrealistic. Open reach, which is wholly owned by BT, plans to install fiber on approximately four million buildings per year in the near future.
BT said it has the capacity to do this “entirely from internal resources” and will not affect other priorities such as investing in 5G and its wider modernization program.It was largely responsible for the aforementioned tax deductions because it allowed her to ramp up fiber optic installations.
It paid corporate taxes of between £ 200m and £ 300m in recent years, but reported a dip in financial performance last year when the Covid-19 pandemic hit profits. Philip Jansen, CEO of BT Group, said: “BT is already building more full-fiber broadband for households and businesses than anyone else in the UK.
Today, we are raising our FTTP target from 20 million to 25 million homes and businesses to deliver more value to our shareholders and to support the government’s fiber optic ambitions.
“This has three huge benefits: it allows us to go faster and increase our capacity to deploy fiber for households and businesses; it will enable us to go further and bring fiber to more people, including in rural communities, and it will boost the UK’s economic recovery, with better connectivity and up to 7,000 new jobs.
Of com recently found that the digital divide narrowed last year as more people were forced to use online services by the pandemic. However, the homes that remained offline turned out to be even more ‘powerless’ than before.