We're the UK's digital network business - connecting homes and businesses large and small.
We're the UK's digital network business - connecting homes and businesses large and small. We want to build the best possible network with the highest quality service, and make sure everyone in the UK is connected.
Openreach provides the vital infrastructure that is the foundation of the UK’s vibrant internet economy.
We’re responsible for providing services over the local access network, sometimes referred to as ‘the last mile’. This consists of the copper and fibre connections between our exchanges to homes and businesses. More than 652 service providers use our network to deliver services ranging from telephony, broadband and television for the home, to high-speed data connections for businesses of all sizes.
We’ve invested billions of pounds over the last decade in our network, allowing us to deliver one of the fastest fibre rollouts in the world. As of 30 June 2020 we've made superfast fibre broadband of over 30Mbps available to 28.5 million premises with 15.1 million customers connected to our network via multiple service providers. More than ninety-six per cent of the UK now has access to superfast broadband across all networks.
We’re now working to take the UK from a Superfast to an Ultrafast nation, with plans to make Ultrafast speeds available using Fibre to the Premises (FTTP) and Gfast technologies.
We're extending our FTTP footprint to 4.5m premises by March 2021. But we want to go a lot further - we're aiming to reach 20 million premises by the mid to late 2020s and ultimately the majority of the UK, if we can get the right conditions in place.
How we’re doing
Revenue growth year on year was driven by higher rental bases in fibre1, up 19%, and Ethernet, up 10%, partially offset by decline in legacy products and price reductions (reflecting the impact of Openreach’s volume related discounts).
EBITDA grew 2% year on year with revenue growth partially offset by higher operating costs. The increase in operating costs was primarily driven by investment in people to deliver better service, partially offset by ongoing efficiency programmes.
The quarter has been impacted by Covid-19 driving lower churn between providers in the market that reduced provisioning and upgrade activity, but also reduced ceases across all products. We mitigated some of the Covid-19 impact by short-term reductions in discretionary spend and overtime payments, and re-phasing of recruitment. Take up of FTTP was also impacted by lockdown, but has now accelerated with 10k orders received in a single week in June, primarily from BT’s Consumer unit.
In the quarter, Openreach achieved 41 of Ofcom’s 42 quality of service levels on voice and broadband service, including FTTC, despite service having been heavily impacted by Covid-19, with MBORC (Matters Beyond Our (Openreach's) Reasonable Control) invoked for much of the quarter.
1 FTTP, FTTC and Gfast (including Single Order migrations)
Mike was appointed appointed as Openreach chairman in November 2016. Prior to this Mike spent eight years on the board of Ofcom, from 2007 to 2015. He’s previously been chairman of several other public and private companies, and is also carrying out the role for Together Financial Services Ltd, IGas Energy plc and Arran Isle Ltd. He’s held various non-executive roles after spending most of his career at Cable and Wireless, Philips, Motorola and GE.Close
Clive was appointed CEO, Openreach in February 2016. He was formerly CEO, BT Technology, Service & Operations, CEO BT Innovate & Design and before that president, BT Global Services Portfolio & Service Design. He is an ‘invitee’ because the CEO of Openreach cannot be a member of the Executive Committee under the provisions of the Undertakings and Commitments.Close