The company reported a decline of 242,000 Openreach broadband lines during the three-month period to September 30, 2025. This downturn was attributed to intense competition and a softening in the wider broadband market, according to statements made to investors.

BT’s half-year results underline the pressures facing the company, including losses of broadband customers and heightened competition in the UK market.

Despite these pressures, BT Group published its results for the half year to the end of September 2025, highlighting progress in its transformation programme, stabilisation in its UK business division, and continued expansion of full-fibre and 5G+ coverage.

The Group also used the update to unveil a landmark rural connectivity partnership with SpaceX’s Starlink, in a deal expected to reshape the UK’s hardest-to-reach broadband landscape from the second half of 2026.

Customer losses underline fierce retail fibre battle

The broadband decline adds further context to a fiercely competitive UK fixed-line market. New fibre altnets, aggressive pricing strategies from Sky and Virgin Media O2, and a cost-of-living-driven shift in consumer behaviour have tightened margins and challenged incumbents.

Market analysts note that Openreach’s rollout success, with full fibre now covering more than 20 million premises, has accelerated competition as challengers race to attract newly-enabled customers. BT has continued to push premium propositions under the EE brand, while rivals have lured households with lower-priced packages as switching activity rises.

BT is also reducing headcount as part of its multi-year simplification and modernisation strategy, designed to improve efficiencies and offset cost inflation, particularly in labour and legacy technology operations.

The job reductions form part of nearly £250 million worth of annual cost savings made over the period, bringing the total to £1.2 billion over the first 18 months of its cost-cutting programme. The company has not provided a specific number of job cuts in this half-year update.

Kirkby: Transformation “delivering ahead of plan”

Against this backdrop, BT CEO Allison Kirkby emphasised steady execution and long-term positioning.

“BT is delivering on its strategy in competitive markets. We’re building the UK’s digital backbone, connecting the country like no one else and accelerating our transformation. Openreach full fibre broadband now reaches more than 20 million homes and businesses and our award-winning EE network is live with 5G+ coverage for 66% of the population.

“Since the start of the year, we’ve driven customer growth across Consumer broadband, mobile and TV and we’re stabilising our UK-focused Business division. Outside the UK, we’ve completed strategic exits and we’re reshaping our International unit.”

Kirkby added: “BT’s transformation is delivering ahead of plan, as our UK focus and radical simplification and modernisation are helping to offset declines from our International and legacy businesses and higher labour-related costs since the start of this tax year.”

“We remain on track to deliver our financial outlook for this year, our cash flow inflection to c.£2.0bn in FY27 and c.£3.0bn by the end of the decade, and we’re announcing an increased interim dividend to 2.45 pence per share.”

BT and Starlink: Closing the rural divide

The standout announcement alongside the results was a partnership with Starlink, providing satellite-powered consumer broadband to rural households where fixed-line deployment remains economically challenging.

This follows Virgin Media O2’s partnership, which made it the first UK operator to use Starlink’s satellite-to-mobile network, comprising over 650 low Earth orbit (LEO) satellites, to connect directly to phones via part of O2’s licensed spectrum.”

BT Group said the collaboration “will bring Starlink’s reliable, high-speed, low-latency satellite connectivity to BT and EE consumer broadband customers,” complementing BT’s fibre and 5G networks. Expected launch is in the second half of 2026, with peak download speeds cited at up to 280Mbps.

The company described the move as pivotal for universal digital inclusion: “The collaboration, a first in the UK and one of the first globally, will see BT Group offer ultrafast, low-latency satellite connectivity to customers in rural and remote areas where traditional fixed-line infrastructure is economically unviable or geographically challenging to build.”

Kirkby positioned the deal as a major step forward: “As we create a better BT for all of us, no one is doing more to connect the UK than we are. This landmark agreement with Starlink is a giant leap for rural connectivity, allowing us to get fast and reliable in-home connectivity to our customers in some of the UK’s most rural and isolated areas and to bridge the digital divide better than ever.”

Chad Gibbs, VP of business operations at SpaceX, said: “On behalf of Starlink, we’re excited to team up with BT Group and bring high-speed internet to more people across the UK. Their local presence will help us reach those communities which have historically faced challenges with reliable connectivity. Starlink is committed to its mission to connect the unconnected while maintaining focus on delivering overall quality of service.”

Multi-access strategy crystallises

The integration of satellite into BT’s portfolio reflects a layered strategy, fibre first, mobile where flexible, satellite where necessary. BT highlighted its Madley Communications Centre’s 50-year satellite heritage and noted that low-Earth-orbit satellite backhaul already supports EE services in remote areas.

BT’s Openreach fibre rollout remains on course to reach 25 million premises by end-2026 and aims for 30 million by 2030.

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