NDIA sues to reverse Trump decision to cancel Digital Equity Act | Total Telecom

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News

The NDIA is suing to reinstate the Digital Equity Act Competitive Grant Program, which they allege was unconstitutionally cancelled

By: Brad Randall, Broadband Communities

A national non-profit is now fighting back months after President Donald Trump labeled the Digital Equity Act “racist” and ended funding associated with the act.

Represented by the Lawyers’ Committee for Civil Rights Under Law, the National Digital Inclusion Alliance (NDIA) announced last week they’re now suing the federal government to restore the Digital Equity Act Competitive Grant Program.

The NDIA says they were impacted severely by Trump’s announcement, which they also allege violated the separation of powers between the executive and legislative branches.

“No more woke handouts based on race,” the president previously posted about the Digital Equity Act, which was passed into law as part of the Infrastructure Investment and Jobs Act. “The Digital Equity Program is a RACIST and ILLEGAL $2.5 BILLION DOLLAR GIVEAWAY.”

Trump decision stopped ‘shovel ready’ projects

With their lawsuit, the NDIA seeks to resume grant-funded projects they say are “shovel ready,” which would provide digital navigator services to 30,000 people across 11 states.

“The Administration is cutting a program that improves the lives of millions of Americans and provides much-needed support, which continues to harm the most vulnerable among us,” said Gillian Cassell-Stiga, senior counsel of the Digital Justice Initiative at the Lawyers’ Committee for Civil Rights Under Law. “The goal of the Digital Equity Act is to ensure that everyone has access to essential resources, whether it be access to employment, healthcare, or education.”

The suit, filed with the U.S. District Court in Washington D.C., directly challenges Trump’s assertion that the Digital Equity Act was unconstitutional.

Furthermore, the suit alleges the Department of Commerce did not have the authority to cancel Digital Equity Act grants, one of which was awarded to the NDIA in March.

According to the NDIA, the grant awarded to the organization was designed to support the NDIA’s planned Digital Navigator+ (DN+) Program.

The DN+ program, had it been funded, would have assisted digital navigator efforts in Alabama, Alaska, Arizona, Arkansas, Georgia, New York, North Dakota, Ohio, Oklahoma, Oregon, and Washington, NDIA’s announcement stated.

‘Let’s be very clear’

Angela Siefer, the NDIA’s executive director, called the organization’s decision to sue the federal government an “extraordinary step.”

She said the thousands were counting on the DN+ program to help them submit job applications, access telehealth, attend classes, and stay safe online.

“Thousands more across the country stood to benefit from Digital Equity Act grants through other trusted community organizations,” Siefer said. “Let’s be very clear, the Digital Equity Act is not unconstitutional nor racist, it passed with overwhelming bipartisan support to ensure the United States can compete in today’s modern economy.”

The DN+ program was one of 65 different projects recommended for Digital Equity Act Competitive Grant Program awards, according to the NDIA.

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Openreach Offers Free FTTP to UK Fixed Wireless Broadband ISP Users | ISPreview UK

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Network operator Openreach (BT), which has recently taken some flak for its broadband discounts (here), have launched another somewhat curious new promotion for ISPs that cuts the rental charge on all New to Network (NTN) full fibre (FTTP) lines to £0 for the first 12 months when the customer originates from a Fixed Wireless Access (FWA) service.

Firstly, it is important to caveat that New to Network (NTN) means a property (house, flat etc.) where there have been no Openreach products or services on the relevant line at any point in the last 90 consecutive days prior to the date of the Fibre-to-the-Premises (FTTP) order (excluding any premises on ‘New Sites’, like new build homes etc.).

The goal of this promotion is thus much more niche than the prior debate over their proactive migrations offer, which caused plenty of fuss. But this promotion seems to be targeted at ISPs, such as those with a pre-existing fixed wireless broadband base, which may want a more attractive route for encouraging those existing customers to take-up FTTP instead via Openreach’s network (once deployed).

The offer will only be open to take between 17th November 2025 and 31st March 2026.

Openreach Briefing

Openreach is introducing a special offer where the rental charge will effectively be £0 (after rebate) for the first 12 months on all FTTP New to Network (NTN) that originate from Fixed Wireless Access (FWA). The special offer will be applicable to orders:

  1. Placed and completed within the Special Offer Window (17 November 2025 to 31 March 2026 inclusive); and
  2. Where the line has both originated from FWA and is NTN.

To participate in the offer, each Communication Provider must submit a list of NAD keys representing their active FWA customer base prior to the start of the offer period, which will be kept confidential. For any NTN FTTP order placed and completed during the offer window at a NAD on that list, the Communication Provider who placed the completed order will benefit from the Special Offer Price. Once live, the FTTP rental will be charged at standard rates and rebated quarterly in arrears, resulting in a net zero rental cost for the first year.

Just to give this some wider context. A number of alternative networks with both their own-built FTTP and FWA bases are also now known to be harnessing Openreach’s network to expand their off-net reach (example). The new offer might thus help to bring some of their FWA base over to FTTP.

The catch is in regard to whether or not this is going to be more of an incentive for the ISP or one that retail providers actually pass on to their customers as a discount too. In any case, FWA only accounts for a very small portion of the UK’s broadband base, so it’s not going to move the dial much.

Ofcom Consult on Alternative UK Pricing for Openreach’s UK Fibre Broadband Products | ISPreview UK

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The UK telecoms regulator, Ofcom, has today proposed changes under their 5-yearly Telecoms Access Review 2026 (TAR) to how they set charge controls and regulate the pricing of certain Openreach based fibre broadband (FTTC/P) products, such as the regulated 80Mbps (currently 40Mbps) wholesale tier and connection fees for FTTP lines.

The proposals are designed to reflect Ofcom’s effort to continue setting regulation that promotes investment and competition (including maintaining a stable regulatory environment for those investments already made), while also providing protection to consumers in certain parts of the UK as competition develops.

As part of the above, Ofcom proposed in March 2025 to continue to set flat, inflation-adjusted prices for a “basic superfast broadband” product (80Mbps download and 20Mbps upload), whilst allowing flexibility on pricing for other speed services. This meant the wholesale price of the 80Mbps tier to ISPs couldn’t rise by more than inflation each year.

The measure is due to be applied to both semi-competitive areas (Area 2 – c.90% of the UK) and non-competitive areas (Area 3 – the final 10%), which is roughly the same approach as already exists for Openreach’s older and slower 40Mbps (10Mbps upload) tier on FTTP (full fibre) and FTTC (part fibre) lines.

However, the regulator has today launched a “narrow consultation“, which specifically focuses on an alternative approach to setting charge controls for the 80Mbps product. “Openreach has suggested that, rather than Ofcom imposing charge control regulations on its 80/20 product, they instead amend their contracts with customers to achieve the same outcome,” said Ofcom, which views the proposal as being “likely to achieve similar outcomes to the charge control and therefore could be a more proportionate way of meeting our objectives.”

Separately, Ofcom are also consulting on proposals to provide greater certainty and stability by allowing Openreach to continue charging Fibre to the Premises (FTTP) connection fees in line with the current Equinox discounts. “Specifically, we are proposing a carve out to the rules on geographic pricing, which would allow Openreach to maintain different connection charges in postcode sectors that move between regulatory areas from April 2026 — under certain clearly defined circumstances“.

Ofcom Statement

• Contract Focused Approach – we are consulting on whether to rely on Openreach’s long term supply agreements, rather than charge controls, to provide effective price protection for the anchor product where they provide sufficient certainty.

We consider that this approach could meet our objectives but invite stakeholder views on this. As part of this consultation, we have published a letter from Openreach setting out proposed contractual waivers, amendments and price list notifications that would give effect to this approach.

• FTTP 80/20 connections (where copper-based services are not available) – if we decide not to adopt a Contract Focused Approach, we would revert to considering the charge control approach proposed in our March 2025 Consultation. We therefore also propose some changes to this approach in relation to the control on FTTP connection charges.

Specifically, were we to adopt a charge control approach, we propose to adopt separate single service controls for each FTTP 80/20 connection service type and incorporate a £20 uplift into the first year of the control for those products where such an uplift is allowed under Openreach’s existing contracts.

• Geographic discrimination prohibition – Under Openreach’s Equinox Offers, FTTP connection fees differ between Area 2 and Area 3 (as defined in the WFTMR21). If the market boundaries in our TAR 2026 Statement change from those in the WFTMR21, then from 1 April 2026, these connection fees would vary within the newly defined WLA Area 2. This would in principle be subject to the proposed geographic discrimination prohibition.

To reduce the risks of market disruption and regulatory uncertainty, we propose a specific carve-out from the geographic discrimination prohibition. The carve-out would permit geographic differences in connection charges, where such differences reflect the terms of the Equinox Offers and also align with WFTMR21 geographic market boundaries. This proposal would apply under both a Contract Focused Approach and a charge control approach.

The move for Openreach’s 80Mbps tier could be seen as a way of softening the regulation on the incumbent (something that will happen as market competition grows), while still achieving broadly the same end result for consumers. Openreach would also have “no ability to unilaterally change” the conditions during Ofcom’s 5-year market review period, until 2031.

At present, the regulator has not made a final decision on what approach they will take, but the outcome is expected to be revealed alongside their final TAR statement in March 2026.

Tiree Island Suffers Protracted Broadband Outage After Subsea Cable Break | ISPreview UK

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Apparently, Shetland wasn’t the only remote UK island to suffer broadband and phone disruption (here) due to a broken subsea fibre cable after Storm Amy struck Scotland earlier this month. Homes and businesses on the tiny Inner Hebrides island of Tiree are suffering from a similar problem, but have been left with much more uncertainty over its resolution.

Just to recap. Tiree is a low-lying island that is home to a population of around 700. The island’s subsea fibre cable, which runs between the village of Scarinish on Tiree and Calgary on Mull (pictured – see red arrow), was first deployed all the way back in 2014 as part of the Digital Scotland contract with BT (i.e. the BT Highlands and Islands Submarine Cable System).

According to the BBC News, Tiree’s subsea fibre was also damaged during Storm Amy, which has forced local connectivity to rely on a slow and capacity strained temporary Starlink-based satellite broadband link for backhaul, which has been provided by BT (this supports a community-owned network, run by Tiree Broadband).

However, islanders claim they have been given no assurances about who will underwrite the cost of the satellite data connectivity (the community ISP may need to pay £10k a month to keep the island online), and repairs to the fibre are not currently expected to take place until December. As with the situation in Shetland, the damaged subsea cable rests in shallow water about 600 metres offshore, which will require both a barge and a period of calm weather for the repairs to take place.

Rhoda Meek, Tiree Community Development Trust, said:

“At one point during Storm Amy there was no means of communicating with emergency services beyond making a call through an analogue phone line. Some of the phone companies have been completely missing since it happened, their masts are completely out. EE and BT have 4G up but the signal is very erratic – you’ve got people out in gardens trying to get hot spots for connections.

We’re asking people not to stream anything and not to have video calls, because we can’t risk data access getting worse. It shouldn’t be the community that this is having to pay this data. It’s a lot of money for a community trust to find.”

A BT spokesperson said:

“BT’s Emergency Response Team has worked across the community to keep Tiree connected following network infrastructure damage caused by Storm Amy. We’ve deployed temporary solutions that have allowed BT to maintain essential connectivity services for existing customers.

This includes Tiree Broadband, and we’re continuing to discuss options to keep connectivity in place for them until full service is restored.”

The Scottish Government have indicated that they’re “liaising closely” with BT, Openreach and other key partners to ensure the subsea fibre connection to Tiree is “restored as soon as possible“. The issue has naturally raised a few concerns about the dependence of the island on a single subsea fibre link, but then such is the challenge with small and extremely remote island communities.

However, it’s worth noting that locals could order their own direct Starlink broadband connections, which would circumvent the capacity problems from sharing a single enterprise grade terminal via the local community network. Starlink’s roaming option would probably suit this quite well, since it doesn’t attach a long contract term and can be re-activated when needed (they also have a ‘Standby Mode’ for a small monthly fee for emergency messaging and basic tasks etc.).

Broadband ISP Virgin Media UK Upgrades Customers to Hub 5 Router for Free | ISPreview UK

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Customers of fixed broadband provider Virgin Media (O2) have today been informed that the ISP is “starting to upgrade” those with their older Hub 3 (TG2492S/CE) and Hub 4 (TG3492LG-VMB) Wi-Fi routers to its newer, more advanced Hub 5 device “at no extra cost“.

The Hub 5 (Sagemcom F3896LG-VMB) has actually been around since late 2021 (here), when it became Virgin Media’s first router to support 2Gbps+ gigabit-capable broadband speeds via their DOCSIS 3.1 (Hybrid Fibre Coax) network (the Hub 4 could also do DOCSIS 3.1, but it was more of a 1Gbps device). A slightly more advanced Hub 5x variant also exists for those covered by and connected to Virgin Media and nexfibre’s new XGS-PON based full fibre (FTTP) network.

NOTE: The Hub 5x is different from the Hub 5 in that it only supports their XGS-PON based full fibre connections (no more DOCSIS / coax) and replaces the 2.5Gbps LAN port with a 10Gbps one. The downside is that their 5x still does NOT support Modem Mode, but the Hub 5 does.

The upgrade aims to boost customers’ broadband performance around the home, making it smoother and more reliable, with the roll-out benefitting thousands of customers before the end of 2025, before being “expanded further in 2026“. The move will no doubt also help to ensure that Virgin Media keeps their hardware current for the new network security requirements, while also ensuring efficient use of spectrum on their DOCSIS 3.1 network.

Gareth Lister, Director of Connectivity at VMO2, said:

“Providing our customers with the very best broadband experience sits at the heart of Virgin Media O2. As our technology and products evolve, we’re committed to making it easier than ever for our customers to enjoy them. Not only will this upgrade benefit thousands of customers’ connectivity by enhancing their coverage, it will also future-proof their broadband services for new innovations to come.”

The move is not unexpected as Virgin Media, much like other broadband ISPs, have long rotated their hardware over time to ensure that all customers can access more modern kit. In addition, we’re expecting Virgin Media to come out with a Wi-Fi 7 capable Hub 6 router in the future (the Hub 5 is a Wi-Fi 6 device), which currently seems likely to surface in 2026.

Huawei released intelligent OTN solution to power the intelligent era | Total Telecom

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Press Release

Paris, France, October 15, 2025During the NetworkX 2025 Next-Generation Optical Networking (NGON) Forum, Huawei introduced its groundbreaking Intelligent OTN solution, positioning it as the cornerstone for future-proof optical transport infrastructure. Gavin Gu, President of Optical Transport Network Domain of Huawei, detailed how this innovation addresses the escalating demands of AI-driven digital transformation in his keynote “Intelligent OTN, Intelligent Foundation.”  

AI fuels rapid transformation of the Optical Transport Industry 

The rapid construction of global AI data centers is injecting unprecedented momentum into the optical transport industry. The technology iteration cycle has accelerated from the past “10 years per generation” to the current “2-3 years per generation.” This shift drives a steeper decline in the cost-per-bit for network construction. Furthermore, the new collaborative model of real-time “Device-Pipe-Edge-Cloud” interaction in the intelligent era is shifting networks from “one-way” to “interactive,” and from “best effort” to “deterministic.” 

Mission-critical AI workloads demand unprecedented network performance. Data Center Interconnection (DCI) requires “six nines” (99.9999%) reliability and terabit-level capacity, while Data Center Access (DCA) needs millisecond-level latency with flexible bandwidth allocation for diverse applications from industrial AI to immersive experiences. 

Intelligent OTN Solution enhances network capabilities  

To better support DCI and DCA scenarios, Huawei launched the Intelligent OTN solution, focusing on two core directions – “OTN for AI” and “AI for OTN” – with multiple key capabilities. 

In the “OTN for AI” direction, addressing efficient DCI connectivity needs, the backbone network should upgrade with three key technical capabilities: The wavelength advancing towards 800G and even 3.2T in the future, significantly reducing the cost-per-bit for network construction; network architecture upgrades from C-band ROADM to C+L-band OXC, doubling switching capacity; and achieving zero packet loss transmission between computing nodes via the DC-OTN solution. For the user-side DCA scenario, four key capability upgrades enable the construction of an ultra-low latency metro network: Realizing “1ms to the data center” via mini-OXC devices; 100G to the edge, providing sufficient bandwidth for applications; the fgOTN solution supports fine-grained, hitless bandwidth adjustment starting from 10Mbps; and the enhanced WSON solution reduces service restoration time to within 50 milliseconds, significantly improving network reliability. 

In the “AI for OTN” direction, Gavin Gu noted that OTN networks were traditionally often called “dumb pipes.” However, Intelligent OTN introduces new technologies like digital twins and AI technologies to enable upgrades throughout the entire optical network lifecycle. By building a three-dimensional digital twin model encompassing services, network, and optical fibers, the network becomes visible, manageable, and optimizable. In the planning and construction phase, service provisioning time is reduced from months to days. In the operations and optimization phase, the system can proactively identify network risks, substantially reducing potential network failures. Intelligent OTN drives the evolution of optical networks from traditional “dumb pipes” to “intelligent pipes” with self-awareness, self-decision-making, and self-optimization capabilities, advancing towards high-level autonomous networks. 

“As the intelligent era fully arrives, driven by both ‘OTN for AI’ and ‘AI for OTN,’ Huawei’s Intelligent OTN solution will provide powerful transport support for global digital development,” said Gavin Gu. “It is both the transmission artery for the intelligent era and an evolving intelligent entity, solidifying the foundation for the future of the intelligent era.  

GSMA digs deeper into mobile industry cohesion with new Entitlements Service  | Total Telecom

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pile of smartphones

Interview

The service aims to simplify collaboration between network operators and device manufactures when it comes to rolling out new services

The GSMA has unveiled a new cloud-based platform, the Entitlements Service, designed to fundamentally streamline the relationship between mobile network operators and device manufacturers. Announced on last month, the service is positioned as the final piece of a three-part solution aimed at solving a long-standing industry challenge and ensuring a seamless, out-of-the-box experience for consumers. 

Speaking to Total Telecom, the GSMA’s Senior Director of Product Management, Shamit Bhat said the platform was conceived as a solution to a fundamental lack of coordination between operators and equipment manufacturers, which typically leaves both sides spending lot of time exchanging optimum network and device parameters and conducting strings length tests to ensure devices and networks are technically aligned for best performance.  

“The operators sometimes struggle to get through to the manufacturers and vice versa,” he said, adding that this is especially true for smaller operators and manufacturers who lack the resources to engage directly with industry behemoths. “There’s a lot that needs to be done in order to bring these two worlds together, even though the end customer is the same.” 

According to Bhat, this disconnect in communication leaves the industry moving far slower than necessary, with each new device, new operating system update, or new network technology being tackled individually by the mobile ecosystem. 

Streamlining interoperability 

To address this challenge, the GSMA offers a suite of three products. The first is interoperability testing, a service that standardises the testing process for voice, data, and messaging services particularly focusing on Voice over LTE (VoLTE) and 5G services.  

“If I have to test your capabilities with thousands of companies, it’s practically impossible to scale a service,” explained Bhat. “Our goal is to remove the unnecessary repetition of those tests by making test data readily available to relevant ecosystem players.”  

By certifying a network or device against GSMA standards (such as IR.25 for voice and NG.143 for 5G), the GSMA provides an authoritative stamp of approval that can be trusted by the entire industry. 

Building on this foundation is the Network Settings Exchange (NSX), a platform that simplifies the pre-configuration of devices. It allows operators to securely send their optimal network settings to manufacturers instantly, once again reducing the need for maintaining a one-on-one relation for enabling services.  

“When customers buy a device off the shelf, they want to know that it will work optimally from day one,” said Bhat. “This service tells the manufacturer the optimal settings for 2G to 5G, voice over Wi-Fi (VoWi-Fi), voice over LTE (VoLTE), APNs, IMS, etc… We have around 400 different settings between different technology stacks, all of which can be communicated at the click of a button.”  

So far, over 850 equipment manufacturers and 250 operators are using NSX, significantly reducing the burden on customer care across the device ecosystem. 

The Entitlements platform 

With the two previous services, the GSMA has focussed on the deployment and optimisation of the mobile industry’s core technologies. With the Entitlements platform, based on the TS.43 standard, the GSMA is penetrating even more deeply into the ecosystem, aiming to harmonise the activation of individual advanced features. 

Traditionally, launching a new feature – anything from eSIM transfer to the pairing of smartwatches – meant a lengthy and costly development project, often with separate builds required for iOS and Android. With the GSMA’s Entitlements platform, this is no longer the case.  

“When you look at an individual subscriber, you need to know what they are entitled to do with their device. Can they use VoLTE, for example, or VoWiFi? Can they use satellite messaging? What about connecting to a companion device? Operators typically build their own entitlements infrastructure for that,” explained Bhat. “We’re taking away that integration burden and shortening the time to market.” 

The potential gains here through using a unified platform are significant, both in terms of cost and time. 

“It just takes four to six weeks with two or three developers to do all the integration,” Bhat explained, contrasting it with the “months and months” or even “years” a traditional build would take. “It’s much, much faster, and it doesn’t need any new time and money to be invested in new use cases. They’re just added to the platform by default, and you can integrate the APIs and off you go. It’s far more efficient and far more scalable.” 

At a time when operators are struggling to drive up ARPU, bringing new use cases to market quickly and simply has never been more important. 

Removing roadblocks for the ecosystem  

Taken together, these three interoperability solutions from the GSMA represents a significant boost in agility for the mobile ecosystem. By replacing bespoke, time-consuming integration projects with unified, cloud-based platforms based on industry standards, the GSMA is removing a costly barrier that has long hindered innovation.  


Whether  you’re an operator, device manufacturer or industry innovator, now is the time to get involved — collaborate, contribute and help build a world where every device connects seamlessly, intelligently and securely.  

Contact GSMA today to learn more about these services.  

Your customers are entitled to more  

BT Group Appoint Greg McCall as New UK Chief Security and Networks Officer | ISPreview UK

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Telecoms giant BT Group has today announced the retirement of industry veteran Howard Watson as its Chief Security and Networks Officer (CSNO), which will take effect in March 2026. Greg McCall, the operator’s current Chief Networks Officer (CNO), will be promoted to replace him – effective 1st January 2026.

Howard Watson is one of the industry’s most familiar figures and will leave behind a strong legacy. Howard spent more than a decade at BT and over 40 years in the telecoms industry.

Meanwhile, since joining BT in 2013, Greg has held various senior roles across the business and helped spearhead the UK’s first 5G network, among other things.

Allison Kirkby, CEO of BT Group, said:

“I am delighted to appoint Greg as our new Chief Security and Networks Officer and a key member of BT’s Executive Committee. Greg is a fantastic example of the bench strength we have within BT, having contributed over many years to our network leadership position. With Howard now passing the baton to Greg, our network, and its trusted status, is in strong hands. We are also all incredibly grateful for Howard’s dedication, deep technical expertise, and the lasting impact he’s made not just on BT, but on the industry, over many years, and wish him well in his retirement.”

Broadband ISP Ogi Expand Full Fibre Spine to Connect More Cardiff Businesses | ISPreview UK

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Infracapital-backed alternative network operator and ISP Ogi, which has deployed their FTTP broadband network across 100,000 homes and businesses in South Wales (RFS), has managed to expand their full fibre spine in Cardiff to reach more businesses following an earlier deal to hook up Cardiff Arms Park as an anchor tenant.

Some of the city’s best-known food and drink retailers have now been connected as part of the recent expansion, with Ogi’s new full fibre spine cable running through the westgate entrance to Central Square. Work is now continuing in areas around the bay and north Cardiff, with a growing number of city centre businesses also on board.

NOTE: Ogi is home to over 20,000 customers and backed by £200m via Infracapital, as well as a £45m financing package from Cardiff Capital Region (here). The ISP employs c.200 staff and originally aimed to cover 150,000 premises in South Wales by 2025.

Speaking of all this. Ogi’s parent company, Spectrum Fibre Limited, recently posted their annual accounts to the end of December 2024 and reported a turnover of £7.8m (2023: £4.2m), although the company also made a loss for the financial year of -£32.9m (2023: -£26.8m). The company also reported total assets less current liabilities of £102.6m (2023: £110.6m), albeit with net liabilities of -£88.2m (2023: -£55.2m). But there was no update on their latest premises passed or customer figures.

Ogi’s Director of Business Sales, Andy Dow, said:

“We’ve now got a major piece of digital infrastructure right in the city centre – and the Arms Park install was the catalyst for that. It means we can offer business-grade services to more and more businesses across the capital, with ultrafast speed and enterprise-level support baked in.”

BT Group Warn UK Gov Not to Choke Broadband Investment with Biz Rates Hikes | ISPreview UK

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The Chief Financial Officer (CFO) of BT Group, Simon Lowth, has called on the UK government to “rethink” its proposed changes to UK business rates, which they warn could “risk a slowdown” in digital infrastructure (broadband and mobile) investment and lead to “higher bills” for consumers and businesses.

The issue centres on the Government’s major plan to abolish the notoriously complex Valuation Office Agency (VOA), which oversees how business rates are calculated, and shift its functions into HM Revenue & Customs (HMRC). In theory, this could be a positive move, especially if it results in a fairer and more transparent system for everybody, but the expectation is that business rates will remain an industry-wide bugbear.

NOTE: Openreach via the BT Group are currently investing £15bn to deploy FTTP broadband across 25 million UK premises by December 2026 and then potentially “up to” 30m by 2030. EE are also investing to expand and upgrade their 5G Standalone (5G+) mobile network to reach 99% of the UK’s population by the same date.

The financial impact of this and related changes by the VOA on firms like BT (see below) is currently said to be “unknown“, and will depend on the outcome of ongoing discussions with the VOA, and on decisions taken at the next Budget on 26th November 2025. But BT’s CFO fears that the government’s plans may increase the tax on digital infrastructure and “threaten investment across a broad range of [other] infrastructure sectors“.

Our in-depth analysis suggests that this reform could reduce business investment by £1.4 billion over five years, and permanently shrink the UK’s economy by £1.5 billion a year. That turns a supposedly revenue-neutral policy into one that actually costs the Government £600 million annually,” warned Lowth.

Simon Lowth, BT Group CFO, said:

“The VOA is currently revaluing every commercial property in the UK. This is a major concern to businesses of all sizes, as it has been argued that its approach can lack transparency and accountability. There is also a significant risk that the VOA takes decisions which stifle economic growth.

At the same time, the Government is also introducing a new reform charging a higher rate to businesses with properties and physical infrastructure valued over £500,000, which aims to fund lower tax rates for retail, hospitality, and leisure firms.

The goal was to get online giants to pay more while giving high street firms a much-needed break. But the reality is more complicated – with serious unintended consequences for the services that keep the country and the economy running.

These changes could instead result in a small number of UK infrastructure providers bearing a disproportionate level of the cost – potentially up to £400m between them each year. These are businesses investing in the energy, transport, and digital networks that underpin the economy and the country as a whole. Penalising them risks slowing investment in the fabric of the nation and the networks and services we need to fuel growth.

Meanwhile, large distribution warehouses – often associated with online tech giants – could end up contributing just £250 million a year between them. But that figure also includes warehouses used by haulage firms and UK retailers, meaning that tech giants may only pay a small portion of what is needed to properly support small businesses.

As a result, these reforms are unlikely to rebalance the system in favour of the high street. And more than that – the new business rates could become a tax on UK infrastructure, at a time when the country needs investment most.”

The remarks echo what BT’s CEO, Allison Kirkby, said last month when she warned against further increases in the country’s already high tax burden and specifically highlighted business rates (here). The risk is that, if the tax burden becomes too aggressive, then BT may shrink or slow some of its planned deployments and that could in turn impact the government’s own digital infrastructure targets (BT won’t be the only ones to react in such a way).

The catch is that BT is currently up against stiff competition in both the mobile and broadband sectors, thus any slowdown in their ambitions or scaling back might leave them at more of a competitive disadvantage in some areas. On the flip side the government is busy trying to make its public finances work without borrowing more and increasing the country’s already hefty debt mountain. But tax too much and investment may fall.

The UK’s public sector net debt was approximately 96.4% of Gross Domestic Product (GDP) in August 2025, and general government gross debt was 101.3% of GDP at the end of 2023. In other words, the total national debt is roughly the same as the country’s annual economic output. The UK has to pay interest on its national debt, with payments on central government debt reaching £8.4 billion in August 2025 alone.