Telecommunications behemoth BT has announced a notable deceleration in customer attrition, indicating potential market stabilisation within the UK's intensely competitive broadband sector. The company's latest quarterly results reveal a complex picture of shifting consumer patterns and strategic infrastructure investment.
Broadband Customer Figures Show Encouraging Trend
During the final quarter of 2025, BT reported losing 210,000 broadband customers, a figure that proved less severe than market analysts had anticipated. Industry expectations had predicted losses exceeding 230,000, suggesting the company's retention efforts may be gaining traction.
This improved performance has prompted BT to revise its full-year projection for Openreach fixed-line broadband customer losses downward. The company now forecasts 850,000 losses for the year, representing a significant improvement from its earlier estimate of 900,000.
Full-Fibre Expansion Offsets Traditional Broadband Decline
While traditional broadband services experienced customer erosion, BT witnessed remarkable growth in its full-fibre offerings. The company successfully added 571,000 new full-fibre customers during the quarter, demonstrating strong consumer demand for next-generation connectivity.
Chief executive Allison Kirkby informed the Press Association that competitive pressures from low-cost rivals, often referred to as "retail altnets" including providers like CityFibre, are now "abating" as BT accelerates its nationwide infrastructure expansion.
"We're building further and faster across the country than anybody else," Ms Kirkby stated. "Now we have two-thirds of the country on fibre and we're seeing reduced competition, so the consumer demand is there."
Financial Performance Reflects Market Transition
The telecoms giant reported that total revenues fell by 4 per cent to £5 billion in the quarter ending December 31, primarily due to service revenue declines. Adjusted UK service revenues specifically decreased by 2 per cent to £3.8 billion for the period.
Several factors contributed to this financial performance:
- Lower equipment revenues, largely linked to weakness in handsets
- Strategic divestments affecting overall revenue figures
- £214 million of losses related to its sports joint venture behind TNT Sports
Pre-tax profits consequently fell to £183 million for the quarter, compared with £427 million during the same period a year earlier. The sports joint venture, operated alongside US media giant Warner Bros Discovery, has become the centre of a bidding war between streaming rivals Netflix and Paramount Skydance.
Infrastructure Leadership and Future Outlook
Despite these financial challenges, BT emphasised it remains on track to meet its financial guidance for the current year. The company's network expansion continues at unprecedented pace, with full-fibre broadband now reaching more than 21 million homes and businesses across the UK.
"BT continues to deliver on its strategy – building and connecting the UK to the best next-generation networks at record pace, while accelerating our transformation," Ms Kirkby affirmed.
The company's infrastructure achievements include:
- Full-fibre broadband accessibility to over 21 million premises
- 5G+ network coverage extending to 69 per cent of the population
- Record full-fibre connections through Openreach
- Customer growth across broadband, mobile and TV services in the consumer division
This dual narrative of traditional service erosion alongside next-generation network growth illustrates the telecommunications sector's ongoing transformation. As consumer preferences shift toward faster, more reliable connections, BT's strategic focus on infrastructure expansion appears to be positioning the company for future market leadership despite current financial pressures.
