London, Jan 28, 2026, 08:24 GMT — Regular session
- BT shares slip in early London trading following a choppy start to the week
- Attention now shifts to next week’s quarterly trading update and developments in UK rates
- Broadband churn, fibre adoption, and cash flow are key points investors are monitoring
BT Group shares slipped about 0.4% to roughly 186.4 pence in early London trade Wednesday by 0824 GMT. The FTSE 100 telecom stock is still absorbing the large price swings seen earlier this week. 1
Attention now turns to BT’s upcoming trading update, a quarterly check-in where companies typically highlight demand changes and reconsider their guidance. For BT, this means keeping an eye on fibre rollout progress at Openreach, broadband subscriber numbers, and whether cash flow is tracking as expected.
This is important now as the rate environment returns to focus, with telecoms often acting like “bond proxies” when investors chase yield and crunch debt numbers. A reliable dividend tale shifts once markets begin reevaluating the pace at which borrowing costs could drop — or fail to.
The shares have been volatile. BT fell 2.9% Monday but bounced back 2.35% Tuesday, according to recent session data. Traders are weighing if that dip was a genuine reset or just market noise ahead of next week’s developments. 2
UK broadband is still a fierce battleground. Investors are jittery over signs that price cuts are sparking more aggressive promotions, while smaller “alt-net” fibre providers are grabbing market share quicker than many predicted in some areas.
Rate expectations have shifted back into focus ahead of the Bank of England’s upcoming decision. Most economists surveyed by Reuters anticipate the central bank will keep its benchmark rate steady at 3.75%. “The bank will want to take a wait-and-see approach,” said Sanjay Raja, Deutsche Bank’s chief UK economist, highlighting policymakers’ preference to gather more data before making another move. 3
BT’s ongoing equity debate remains unchanged: balancing fibre and cash flow against churn and pricing pressures. In November, the company said strong fibre demand kept its free cash flow target in reach — the cash left after operating expenses and capital spending. Yet, it reported a loss of 242,000 broadband lines in Q2, following Sky’s move onto rival CityFibre’s network. CEO Allison Kirkby noted then, “Our line losses were exactly in line with Q4 last year.” 4
That said, the upcoming update could swing either way. If broadband line losses exceed expectations, fibre adoption slows, or spending sticks around at elevated levels, it would challenge the “cash is coming” narrative. A surprise move on rates would only amplify the volatility.
Investors are eyeing Thursday, Feb. 5 for BT’s Q3 FY26 trading update, alongside the Bank of England’s policy announcement. BT’s investor calendar also marks the interim dividend payment on Feb. 11, with full-year results set for May 21. 5
