BT to end 3,700 telephone exchange leases
BT has outlined plans to end two-thirds of its 5,600 telephone exchange leases with owner Telereal Trillium.
The centres are expected to become redundant as the telecoms giant rolls out fibre upgrades across the country.
BT entered into a 30-year agreement with Telereal Trillium in 2001 following a £2.38bn sale and leaseback of 6,700 properties, with a floor area of 59.2m sq ft.
BT has outlined plans to end two-thirds of its 5,600 telephone exchange leases with owner Telereal Trillium.
The centres are expected to become redundant as the telecoms giant rolls out fibre upgrades across the country.
BT entered into a 30-year agreement with Telereal Trillium in 2001 following a £2.38bn sale and leaseback of 6,700 properties, with a floor area of 59.2m sq ft.
As the company advances plans to replace traditional copper lines and moves to long distance fibre connections, it estimates around 3,700 telephone exchange centres will become redundant.
It is on target to provide the new technology by 2025. The five-year modernisation programme will see it switch of legacy services and rationalise products, saving the company £2bn a year, according to its latest annual report.
A BT spokesman said: “BT’s fibre and ‘All-IP’ programmes will facilitate the closure of a significant proportion of our 5,600 local telephone exchanges in the long term.
“We currently lease most of our UK properties from Telereal Trillium, following a sale and lease back arrangement signed with Telereal in 2001. This deal runs until 2031.”
Last year, BT announced it would reduce its office portfolio by 90%, shrinking from more than 300 offices to just 30 city hubs in three years.
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