It is common knowledge that BT has suffered a large blow to its share price with approximately a fifth of its market value (£8bn) wiped off. This followed the announcement that the Italian business mismanagement was worse than BT originally advised investors in October 2016 and that this would now cost the company £530m as opposed to £145m. More worryingly BT has also warned of a slowdown in some of its operations with blaming in part reduced spending in the UK following the Brexit vote, and so BT advised profits would be £300m lower that previous estimates. ERA communications specialist Pritesh Patel says “This news from BT is worrying for business customers as it increases the chance of further price rises (via the proposed twice yearly price reviews). With BT being the largest player in the telecoms space (especially following the purchase of EE the largest mobile provider) the impact is likely to be felt through the wider market”.
If businesses have been putting off a review of their telecommunications now would be the time to engage ERA to review the market.
Article by: Pritesh Patel