BT suggests it could cut dividend to fund fibre expansion
BT suggests it could cut dividend to fund fibre expansion. BT has suggested it could cut the dividend handed out to shareholders in order to invest in fibre to the premise (FTTP) infrastructure. Speculation that BT is preparing to cut its dividend for the first time since 2009 has been mounting, with some expecting an announcement in the company’s most recent financial results. However, such a move did not materialise, with CEO Philip Jansen doubling down on a promise to change the payment until the end of the current financial year. It is thought that some investors would be prepared to accept a cut if BT could prove the potential for long term gains. Others believe that investment in ‘full fibre’ infrastructure is essential given recent rollouts from rivals like Virgin Media and the emergence of ‘altnet’ providers like CityFibre.