Shares in BT stumbled last week as the Labour Party announced plans to part-nationalise it to provide free broadband, should it win the election on 12 December.
Proposals to nationalise BT’s Openreach network and parts of BT Technology, BT Enterprise and BT Consumer, surprised everyone with BT shares initially falling 3.7% last Thursday (14 November).
Labour estimates the cost of nationalisation to create a ‘British Broadband’ service would be around £20bn with free broadband to all individuals and businesses by 2030. However, BT’s chief executive, Phillip Jansen, argued the cost could end being more than £100bn.
It follows Labour’s existing plans to nationalise water, energy and rail companies and the Royal Mail, which the Confederation of British Industry estimates would cost around £196bn.