BT Boasts of its £23.1 Billion Boost to the UK Economy in the Past Year

BT has today tried to show its “positive and direct impact on the UK economy“, and hopefully fend off some calls for Openreach’s separation, by publishing a report which claims that they spend more than £9.3bn a year with UK suppliers and boosted the economy by £23.1bn (GVA) during the past year.

The “independent” new report – ‘Social Study 2016 – The Economic Impact of BT across the UK‘ – is an annual one that has been produced by Regeneris Consulting and this year it also includes the operator’s recent £12.5bn merger with EE into its figures, which shows the direct economic contribution to the UK economy of both combined.

The report also reminds readers that BT, via Openreach and EE, intend to invest around £6 billion over the next three years in order to extend fixed line “superfast broadband” (24Mbps+) and 4G Mobile coverage beyond 95% of the country by 2020.

The above also includes rolling out 300Mbps capable G.fast technology to 10 million premises and Gigabit capable FTTP to 2 million by 2020, with more expected to follow by 2025.

The report further confirms that some 81,400 employees are now directly working for BT and EE, as well as 10,600 contractors (Full Time Equivalent). As a result the combined group is said to directly employ 1 in every 210 employees in the private sector across the UK and the operator boasts that they’re supporting £1 in every £70 of Gross Value Added (GVA) in the UK economy.

Gavin Patterson, CEO of BT Group, said:

“The acquisition of EE means we can invest even further, enabling people living and working in the UK to get access to the best communications – fixed line, mobile and broadband services – now and in the future.

As well as providing the means for families, homeworkers, companies and other organisations to communicate and do business in new and exciting ways, BT is helping to support other firms and suppliers in the UK with the company’s procurement and overall expenditure and the spending of its employees.”

It’s important to reflect that BT actually publishes a study like this every year, although this time around it obviously has more weight given Ofcom’s on-going Strategic Review and the suggestion that Openreach could be separated from the company if they refuse to reach a voluntary agreement with the regulator (here).

On the other hand BT’s rivals would no doubt argue that Openreach could deliver more value than today if it were independent, although none of their rivals have actually been willing to make any solid commitment of investment towards such an outcome.