London, Jan 22, 2026, 08:55 GMT
- BT shares climbed roughly 2% in early London trading as investors digested Openreach’s newest copper switch-off plans
- UBS maintained its “sell” rating with a 140p target, citing concerns over pricing and investment risks
- Openreach expanded its “stop sell” programme by 132 exchanges, affecting roughly 1.23 million premises
BT Group shares climbed roughly 2.3% to 188.25 pence in early London trade Thursday, pushing higher amid optimism over Openreach’s next steps in phasing out copper-based services. 1
The UK faces a deadline to phase out analogue landlines in favor of internet-based calling, a switch that could force households and businesses to update equipment and rethink vital systems like alarms. Openreach says all providers must complete the move to digital phone lines by Jan. 31, 2027. The company is also working to roll out full fibre to 25 million homes and businesses by December 2026. 2
The fibre rollout remains a key market narrative. BT will release its third-quarter trading update on Feb. 5, followed by an interim dividend payment on Feb. 11, spotlighting its broadband growth and cash flow once again. 3
UBS maintained its “sell” rating on BT, holding a 140p price target. The bank warned investors might be underestimating the risks, even if pressure from smaller alternative fibre network builders, or “altnets,” begins to ease. Analysts Polo Tang, Dhruva Kusa Shah, and Christina Michael noted Openreach could face the need to slash prices to protect market share. They estimate a 10% price cut could shave off as much as £400 million annually in EBITDA and free cash flow. “While altnet growth may slow, large players still pose a pricing threat,” the team said, also flagging potential new competition from satellite providers and fintech-backed MVNOs—mobile brands leasing capacity from major networks. 4
Openreach, the operator of BT’s fixed-line network, has added 132 exchange areas to its list — impacting around 1.23 million premises — where providers will soon be barred from selling traditional copper phone and broadband services under “stop sell” rules. This kicks in once 75% of premises served by an exchange have access to full fibre. By mid-February, Openreach expects stop sell to be in place at 1,281 exchanges, covering roughly 12.5 million premises. James Lilley, Openreach’s managed customer migrations director, called the programme “a vital step in accelerating the UK’s transition to a modern full-fibre future.” 5
Practically, this means customers in those regions who switch, upgrade, or renew could be moved to fibre-based products where fibre is available. Premises outside the fibre coverage can remain on copper for the time being. The update also affects retail brands buying wholesale access from Openreach, such as BT, Sky, TalkTalk, and Vodafone.
The battle isn’t just on fixed lines. UK mobile now revolves around VodafoneThree, formed when Vodafone and CK Hutchison merged their UK businesses in 2025. Reuters reported this move would surpass BT’s EE and Virgin Media O2, establishing a new market leader. 6
Investors will be keen to see if BT can continue moving customers to fibre without triggering a price war that chips away at profits. They’ll also be watching how quickly cost savings from ditching copper materialize, given the short-term disruptions involved. The next update in early February will offer a crucial near-term read.
