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UK’s Labour pledges nationalising BT units in free broadband push

UK’s Labour pledges nationalising BT units in free broadband push

Mubasher: The UK’s opposition Labour Party intends to nationalise telecoms giant BT’s fixed line network, in a push to offer free full-fibre broadband, if it wins the December election, according to Reuters.

The Labour proposed nationalising BT’s digital network business Openreach as well as parts of BT Technology, BT Enterprise and BT Consumer.

This came within the framework of the opposition party’s broader proposal for nationalising infrastructure, which would require a sweeping upgrade of the UK’s internet infrastructure.

This would be funded through tax hikes on tech companies such as Google, Facebook and Amazon as well as through using Green Transformation fund.

“It’s time to make the very fastest full-fibre broadband free to everybody, in every home in every corner of the country,” Labour leader Jeremy Corbyn was quoted by Reuters as saying in an extract released by the party.

The costs of nationalising parts of BT would be set by lawmakers, and would be paid for by swapping bonds with shares.

“By creating British Broadband as a public service, we will lead the world in using public investment to transform our country, reduce people’s monthly bills, boost our economy and improve people’s quality of life,” Corbyn said.

BT, once an 1846 telegraph services provider, was one of the UK’s national companies, but it was privatised in 1984 during late Prime Minister Margaret Thatcher.

“It needs funding, it is very big numbers, so we are talking 30 to GBP 40 billion [$51.43 billion] [...] and if you are giving it away over an eight year time frame it is an another GBP 30 or 40 billion,” BT’s CEO Philip Jansen told the BBC.

UK Prime Minister Boris Johnson vowed to provide full-fibre broadband to all citizens by 2025, if the Conservatives triumph in the 12 December election.

Jansen described those plans as “very ambitious ideas,” as the way to implement them are “not straight forward.”

“You are not short of GBP 100 billion,” Jansen said.