FOR the first time since 2006, BT has seen an increase in thenumber of copper lines it is installing as it benefits from anincrease in new households and a trend for customers to swapwireless internet connections for a fixed line.
BT said its network of copper lines grew by 26,000 in its fourthquarter to March 31, building on an increase in the previous threemonths.
Over the year as a whole, BT installed 11,000 new lines, comparedto a loss of more than 300,000 the year before.
Ian Livingston, the Scot who runs the telecoms giant, said: "Thisis a big turnaround."
Mr Livingston attributed the change to rising householdformation. The housebuilding industry has noted a similar trend asmore people get divorced or choose to live alone.
Mr Livingston added some of the 12% of households that rely onmobile communications, including for internet, are moving to fixedlines.
BT added a net 162,000 broadband customers in the first threemonths of 2011, giving it a 64% market share. It said net additionsfor its fast broadband service BT Infinity are running at 5000 aweek with a total customer base of 144,000.
Mr Livingston, who is also a director of Celtic Football Club,said: "We have been surprised by how strong broadband has been.
"Broadband has become core to people. It is about socialconnections. It is about kids' homework."
But the company noted that rising metal prices had prompted asurge in thefts of copper wiring.
Mr Livingston said: "The direct cost is many millions (ofpounds)."
He said the company had put invisible "smart water" dye on manyof its lines so it could identify them and the perpetrators of anythefts.
"We have been working very well with the police and we think wehave had some success."
BT recorded a 6% fall in revenue to pound(s)5.1 billion in thefourth quarter to take the income for the year to pound(s)20.1bn, 4%down on the previous financial year.
Adjusted pre-tax profit was up 21% to pound(s)610 million for thequarter and pound(s)2.1bn, a 20% gain, for the full year, as MrLivingston's cost-cutting strategy continued to pay off.
The telecoms giant signalled though that it expects income tostart growing again by 2013.
It anticipates core earnings to be at least pound(s)6bn by the2012/13 financial year, ahead of current estimates.
There was also positive news about BT's pension scheme, which haslong been seen by the market as a major burden on the company andwhich was pound(s)9bn in deficit at the end of 2008. Yesterday, BTsaid that using the scheme trustees' methodology, its deficit hasfallen to pound(s)3.2bn, thanks in large part to switching from theretail price index measurement of inflation to the lower consumerprice index.
Mr Livingston even raised the prospect of BT cutting its pensiondeficit payments, which totalled pound(s)1bn last year.
The results of the triennial review of the scheme due this yearwill be published in 2012.
"If the deficit has gone down a lot we could put in fewerpayments for the same amount of time or put in the same payments fora shorter amount of time," Mr Livingston said.
Meanwhile, the Pensions Regulator has halted its inquiry into thefunding settlement made between BT and pension trustees after the2008 review.
BT declared a final dividend of 5p, up 9% on last year. This willbe paid on September 5.
After having climbed around 160% in the last two years, BT'sshares shed 2.9p, or 1.4%, to close at 199p.
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