Last month; October 2008, I reported on BT’s plans to create its own fibre-optic network in the UK, starting with Muswell Hill, London, and also Whitchurch, South Wales, (Not Whitchurch in Hampshire.) at a total cost of some 1.5 billion. Short-sighted shareholders, however have basically vetoed those plans for the time being. The shareholders expressed concerns about spending that much money in the current economic climate.

Chief executive Ian Livingston was better foresighted, and said that he still believes that BT should go ahead and make the investment, which he initially announced not long after becoming chief executive. Although he echoed the shareholders’ concerns, there appears little point in cutting back on investment, job creation, resources, and investment, simply because the media have decided that everything financial is doom and gloom. All that will do is aid the recession to deepen, and amplify its effect upon the company in question.

“‘But we need to have the environment in which our shareholders feel there is a good chance of us making a return,” Said Livingston. “If we cannot have that environment this is not the time to be taking on sure-fire losses.”

Also, last week, BT announced that it plans to lay off 4,000 of its own staff and also 6,000 contractors, in order to reduce operating costs by £1.25 billion.

That seems a rather silly move to my mind; but in the light of that move it can now fund all but 250 million for the above project. – It will not do so, however. – So where does the money end up? Probably it appears on the end-of-year profits so that the BT bosses can award themselves another pay-rise as a reward for increased productivity under "detrimental economic conditions": I wouldn’t be at all surprised; the greedy ba—-ds!