LONDON, Oct 4 (Reuters Breakingviews) - BT’s (BT.L) hopes for UK broadband domination may face serious U.S. competition. The telecommunications operator’s shares fell 7% on Monday after the Sunday Telegraph reported that pay-TV operator Sky, owned by $263 billion Comcast (CMCSA.O), wants to invest in Virgin Media O2, the closest rival to BT’s Openreach network read more . Even if a deal happens, Sky would remain a big Openreach customer. BT’s fibre network, which should stretch to 25 million of Britain’s 30 million homes by around 2027, is simply too big to ignore. More worrying for BT Chief Executive Philip Jansen is the need to generate a decent return on the 15 billion pounds he’s going to spend digging up Britain’s roads. Liberty Global-backed (LBTYA.O) Virgin wants to have 14 million homes on ultra-fast broadband by 2028. With support from a giant like Comcast, that target could get bigger and arrive faster. (By Ed Cropley) On Twitter http://twitter.com/breakingviews Capital Calls - More concise insights on global finance: LONDON, Oct 4 (Reuters Breakingviews) - BT’s (BT.L) hopes for UK broadband domination may face serious U.S. competition. The telecommunications operator’s shares fell 7% on Monday after the Sunday Telegraph reported that pay-TV operator Sky, owned by $263 billion Comcast (CMCSA.O), wants to invest in Virgin Media O2, the closest rival to BT’s Openreach network read more . Even if a deal happens, Sky would remain a big Openreach customer. BT’s fibre network, which should stretch to 25 million of Britain’s 30 million homes by around 2027, is simply too big to ignore. More worrying for BT Chief Executive Philip Jansen is the need to generate a decent return on the 15 billion pounds he’s going to spend digging up Britain’s roads. Liberty Global-backed (LBTYA.O) Virgin wants to have 14 million homes on ultra-fast broadband by 2028. With support from a giant like Comcast, that target could get bigger and arrive faster. (By Ed Cropley) On Twitter http://twitter.com/breakingviews Capital Calls - More concise insights on global finance: ESG drills deeper into Gulf oil IPOs read more Zoom’s doomed deal may have exposed a weakness read more Merck’s $15 bln gain is stingy read more Tata flies into next chapter with Air India read more Swedish tech M&A machine risks sputtering read more
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