BT and the Pig Farmer

  peter99co 16:03 15 Sep 08
Locked

On the local news it was said that local farmers are being denied BB connections which were working because a failing telephone network would have to have lots of money spent to re route the service they are now failing to provide.

The farmers need the net to run the business and can not now connect.

With the profit they make I would have thought not helping people in remote places is not an answer. These people have few communication options as it is.

BT say they need to recover costs on any installation. I agree but not from just a few existing let down customers.

  Mike D 17:15 15 Sep 08

I know people will not like what I have to say. I worked for BT for many years(and I am a strong critic). BT and its predecessors were expected to provide service to all locations, regardless of cost. Since privatisation BT has still been expected to do this, something that its competitors have not been required to do. The reason that there is no competition in those remote places is that the competitors think that it is not commercially viable to provide the service.

Yes, BT does make a huge GROSS profit, but what is the NET profit? I know that a few years ago the Net profit was not brilliant when seen as a percentage, and the Return on Capital was also not too clever. I'm not too sure what the current situation is. I would guess that the media only shows the figure that look sensational and make good headlines.

  oresome 17:36 15 Sep 08

BT is now a commercial organisation in competition with other businesses that have cherry picked the lucrative areas in which to compete.

It's not surprising that BT won't spend money in rural areas where there is little or no return.

A similar situation to the postal service. Who wants to deliver mail to outlying areas with several miles between each letterbox?

Perhaps we need a system similar to bus operators, where the company who requires the least subsidy from the taxpayer gets to run the service.

BT are doing something similar with public phone boxes that are uneconomic. Local councils can subsidise them to keep them going otherwise they will be removed.

  Forum Editor 17:53 15 Sep 08

BT has been voted the world's top telecommunications company in the Dow Jones sustainability indexes review.

  peter99co 18:03 15 Sep 08

A Pigs ear!


click here

  Mike D 08:57 16 Sep 08

Thanks for that...
now shall I buy BT shares or try the lottery again? Ah well (dreams of paradise island).

  oresome 12:54 16 Sep 08

"...shall I buy BT shares or try the lottery again?"

You've probably an equal chance of making any money either way! i.e. very slim. BT is saddled with an expensive pension fund, but at least you may benefit from that as an ex employee if not as an investor.

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