Bt Share Discussion Threads

[mbmiah] 23/7/2018 09:27

Unusual price action, was expecting a dip today for the bounce mid week. Shame on the Monty eh lol

[hamhamham1] 23/7/2018 08:18

I guess it will take a while for analysts to read the doc and interpret it.
I am happy with what I have read, but hoped for more gov investment, maybe I was naive there!
Positive (and importantly no punishment).
Upwards and onwards, ex-divi in a few weeks.

[hamhamham1] 23/7/2018 07:58

Toon. Yep, that's good, promote investment, not wholesale price cutting!

[hamhamham1] 23/7/2018 07:54

Not huge amount of ground breaking news I can find in there on initial scan, certainly not many real negatives, although no big funding announcements - no shock there I guess.

They seem broadly happy with the separation progress and receongnise BTs importance.


2.9 Legal separation of Openreach from BT

151. This Review should encourage Openreach to prioritise its future network investment in full fibre roll out, over upgrading legacy copper networks. Openreach can make a significant contribution to securing the goal of nationwide full fibre roll out. We also want to avoid a situation where investment in upgrading copper networks deters fibre investment by alternative operators, thereby reducing overall full fibre roll out and infrastructure competition. We would be concerned at any strategic behaviour that excluded rival operators by the threat of pre-emptive investment.

152. As part of our consideration of different market models, our Call for Evidence asked if the current arrangements for BT’s legal separation were working effectively. We received a range of views on the respective merits of delivering legal separation compared to full structural separation.

153. Under legal separation, a more independent Openreach, with a greater openness to different models of investment and risk sharing, and sharper incentives to be responsive to all its customers, has the potential to increase infrastructure roll out. At the same time, the option of structural separation could increase Openreach’s incentive and ability to invest in full fibre by allowing greater access to lower cost capital.

154. We recognise the important steps that have been taken by BT Group and Openreach to implement legal separation, including setting up the Openreach Board, responsible for setting Openreach’s strategy and overseeing its performance, and industry engagement on technology investment choices.

155. While Ofcom is broadly satisfied with progress towards legal separation, it has concluded that more needs to be done to fully realise greater independence, especially in decision making. The Government wants legal separation to be completed as soon as possible and for Openreach to address all outstanding actions, particularly the transfer of staff from BT to Openreach.66 Openreach should also fully comply with Ofcom’s regulatory obligations on ducts and poles access. This will be fundamental to ensuring all market participants are able to compete on a level playing field, whilst reducing costs of fibre deployment.

156. It is too early to determine whether legal separation will be sufficient to deliver the positive changes on investment in full fibre infrastructure. The Government will consider all additional measures if BT Group fails to deliver its commitments and regulatory obligations and if Openreach does not deliver on its purpose of investing in way that responds to the needs of its downstream customers.

[toon1966] 23/7/2018 07:47

This is important: The Government’s overarching strategic priority is to promote efficient competition and investment in world-class digital networks. The Government’s view is that promoting investment should be prioritised over interventions to further reduce retail prices in the near term, recognising these longer-term benefits.

[ayl30] 23/7/2018 07:37

Quote relating to BT" The legal separation of Openreach from BT Group has the Government's backing, and is critical to deliver better connectivity for consumers throughout the UK. We recognise the important steps that have been taken by BT Group and Openreach to implement legal separation, including: setting up the Openreach Board, responsible for setting Openreach's strategy and overseeing its performance; and proper industry engagement on technology investment choices. The Government wants legal separation to be completed as soon as possible and for Openreach to address all the outstanding actions identified in Ofcom's first progress report, particularly the transfer of staff from BT to Openreach.It is too early to determine whether legal separation will be sufficient to deliver positive changes on investment in full fibre infrastructure. The Government will closely monitor legal separation, including Ofcom's reports on the effectiveness of the new arrangements. The Government will consider all additional measures if BT Group fails to deliver its commitments and regulatory obligations, and if Openreach does not deliver on its purpose of investing in ways that respond to the needs of its downstream customers."

[hamhamham1] 23/7/2018 07:34

Ooh, good spot toon, will have a read.
(I will start on page 74 with the recommendations, then read from front ;)

[toon1966] 23/7/2018 07:23

DCMS Review -

[pacemaker1000] 22/7/2018 14:26

Hammy...I’ll think you’ll find it’s 1.71!
Best in the FTSE.
EDIT: Sorry hammy I misread...doh!
Thought you were talking about BT....yeh Voda has a poor DC as are some companies that are doing better than BT. From what I’ve read BT at 1.7 is after pension deductions. It’s a misconception that BT needs to cut divi. It would only do it to fund investment which it shouldn’t do without guaranteed return. And that’s down to ofcom.

[hamhamham1] 22/7/2018 13:52

That doc shows Vodafone with a divi cover of 0.76x so that could be why their price is down? They need to cut divi or borrow money to pay it?

[eeza] 22/7/2018 09:40

Link doesn't work.
try

[hamhamham1] 22/7/2018 09:25

Last month divi cover doc published by AJ Bell

[pacemaker1000] 21/7/2018 12:05

Dividend is covered better than any other FTSE company.
Plus when the share price is 300 it’s only 5%

[gswredland] 21/7/2018 09:52

Dividend is 7% - sustainable?

[hamhamham1] 20/7/2018 19:00

From my experience with BT. It is a hugely network and service rich company. No rival in Europe IMO.
The problem was it's historic publicly owned never really shed the legacy costs whilst it still is cutting edge. (See Martlesham labs).
I think times they are a changing and this company is going to flourish. Time will tell.

[pacemaker1000] 20/7/2018 18:50

Hammy, always eager to learn differently and maybe I’m being narrow minded only seeing it on a personal basis. Seen millions lost along with redundancies in GS following Brexit. Remember Gavin’s personal plea day before the referendum for staff to vote Remain? He knew the repercussions and was right.
But you never know what will happen and we May (pun intended) get the EU business back and if not expand world wide but it’s not as good as it was at the moment to me anyway

[hamhamham1] 20/7/2018 18:25

Pace. UK/EU Companies buy services and links from many different vendors (for resilliance), including many US suppliers who are outside the EU. If UK is outside the EU that doesn't affect the service supply. Just look at the hundreds of EU companies who now outsourcing large parts of their data centres to Amazon AWS, Microsoft Azure, etc - they don't seem to mind that.
Companies need to use several independent link/service suppliers to get true resilliance.
BT is very well positioned in this market. I rarely see a company that doesn't link into BTs MPLS networks.
And check out BT Radianz, most all European Bourses and Market Data feeds need this unique private network to function. It's a gold mine!

[pacemaker1000] 20/7/2018 18:16

Hi hammy,
If Brexit is reversed then GS may succeed but it’s been decimated by the referendum result so far.
Agree with you on sports and tv but the damage has been done so probably worth keeping ticking over unless BT could offload it

[montyhedge] 20/7/2018 17:26

Oh yes fill yer boots at 192p. The old saying for investors, even a good company bought at the wrong price is a bad investment. Good weekend bulls and bears.
Rory to win The Open.

[kulvinder] 20/7/2018 17:06

Nige, agreed my man.

[nige co] 20/7/2018 16:55

I hope the self-proclaimed number one trader is right that the BT share price does fall to 200p. This would be a great topping up opportunity, I for one don’t agree with him, and think that the share price will be above 230p before ex dividend day 9 August. Time will tell. I’m happy to hold for the long-term 300p plus.

[iceman82] 20/7/2018 16:27

looks like first blue day ......ufff

[montyhedge] 20/7/2018 15:32

You will have investors buy for the 10.55p div, its like their comfort blanket.
But then ex div attack on the 200p pivotal point.

[hamhamham1] 20/7/2018 15:25

Pace. Global Services is not failing, there are several great asset aspects wrapped up in that area. Personally I think, just get the cost model down and keep the lot, except consumer content ( eg Footy, TV series, etc) IMO, that's a game BT can't win and not worth getting in debt for, but am happy to keep what they have committed for now.

Look at my recent posts about BT Radianz (this is unmatched anywhere in the world).

This is a bit of an old doc, but it shows some of the GS assets, it's truly global, again these are part of BTs USP compared to other rivals and upstarts.



Global Services just needs tweaking now after a major restructure (which is being done - inc cloud services facilitation) to get the best out of it, I am a big fan, I may even get a tattoo ;)