BT to explore cable tv market
British Telecom could challenge the country’s two biggest cable TV operators by moving into broadcasting.
The company, led by BBC chairman Sir Christopher Bland, is looking at using its telephone cable network to pump TV programmes and Internet content into the home.
BT has been banned from broadcasting since its privatisation in 1984, but this order expired in January, leaving the telecoms giant free to make its move.
Every home with a telephone line would be able to receive BT’s service, and the company would be a massive threat to NTL and Telewest, which have laid miles of fibreoptic cable across the UK provide their own services.
BT may even strike up a joint venture with BSkyB, Granada Media or OnDigital to secure programme content.
A BT spokesman said: ‘‘We have been barred from getting involved in broadcasting but we will look at what opportunities there are.’’
He added that BT had already upgraded a number of its exchanges so it can beam TV, video and Internet content down its existing copper cable network at high speeds using new technology called ADSL.
The possibility of BT moving into broadcasting comes as Sir Christopher looks to the future after overseeing the start of BT’s massive restructuring programme earlier this month.
The company announced it would be demerging its mobile phone division, selling its directories business Yell and raising £5.9bn through a record-breaking rights issue, all in a bid to slash its £28bn debt mountain.
Venture capital groups Apax Partners and Hicks Muse Tate & Furst agreed a £2.14bn deal for Yell with BT on Friday.
Sir Christopher, who replaced Sir Iain Vallance as chairman in April, is keen to respond to those companies who have entered BT’s core telecoms market, such as Centrica.
The demerged consumer arm of British Gas has also diversified into electricity supply, financial services and car breakdown insurance.
The BT spokesman said that while the possibility of BT providing electricity and gas was remote, it may well look into other areas such as using its network to provide billing services for companies.
