The Inquirer runs the story with the following great quote from BT's CEO Livingstone.
"There are some shareholders who say 'you know something, don't do that, don't do a whole lot of other things. That leaves you with a lot more cash and cash today is worth a lot more than cash in a few years' time'."
And let us be honest. Right they are. BT should only do a defensive move into investing where it might loose market share to Virgin. Maybe some investment where the OPEX decrease warrants the CAPEX increase. Because all in all, shareholders are not there for the public good. Their only interest is self-interest.
Regulators are to blame for this as well. It seems the return on the local loop is good enough that there is no reason to invest in anything new. Said differently, why invest for the coming 50 years if the last 50 years makes enough money.
This is what I tried to get across in the presentation below at the OECD's fibre conference in Stavanger.