LABOURS crackpot broadband plans sparked market chaos yesterday as 500million was wiped off BT, a major TalkTalk deal stalled and 100,000 pensions were put at risk.
The proposal to nationalise Britains broadband network was blasted as a fantasy which could eventually cost more than 160billion.
Jeremy Corbyn was greeted by a baby called Colin, who looked far from impressed
Jeremy Corbyn and John McDonnell’s plans to give away broadband for free could see 100,000 pensions were put at risk
At the launch yesterday of his ga-ga plans, Jeremy Corbyn was greeted by a baby called Colin, who looked far from impressed.
Labour insisted they will nationalise Openreach an arm of BT and give free broadband to every family within a decade at 20billion.
But BTs boss said the rollout would cost 100billion and hundreds of thousands of ex-employers pensions would be another 60billion.
PM Boris Johnson called the idea a crackpot scheme that would involve tens of billions of pounds of taxpayers money.
Sources at the telecoms giant also warned it would mean lower staff wages and job losses. Shadow Chancellor John McDonnell issued a chilling warning to rival firms such as Virgin Media, Sky and TalkTalk, which have invested huge sums in broadband provision.
He said if others failed to come to an agreement with the nationalised firm they would come within the ambit of British Broadband.
He denied fibbing earlier this year when he said Labour had no plans to nationalise anything other than rail, water and energy firms.
‘PEOPLE CAN SEE THROUGH THESE FANTASIES’
Ex-Labour MP Chris Leslie, now standing for the Independent Group for Change, said on Twitter: Why so coy? Why not throw in free SkyTV? Free iPhones? Netflix and Xboxes all round? The more fantastical their promises, the less credible they become.
Chancellor Sajid Javid said: People can see through these fantasies. The truth is there is no private company McDonnell wouldnt nationalise, no private investment he wouldnt confiscate.
BT chief exec Philip Jansen called the plans very ambitious as 500million was wiped off its value.
Speaking on BBC Radio 4s Today show he said it would cost up to 40billion to set up, and another 5billion in yearly revenue which Openreach gets off customers.
PM Boris Johnson called the idea a ‘crackpot scheme that would involve tens of billions of pounds of taxpayers money’
Labour’s ‘crackpot’ broadband plans sparked market chaos yesterday as 500million was wiped off BT
Chancellor Sajid Javid said: ‘The truth is there is no private company McDonnell wouldnt nationalise, no private investment he wouldnt confiscate’
Over eight years that would mean a total not short of 100billion.
He also said they had to look after hundreds of thousands of people who used to work for BT who have pensions that they rely on. He estimated current liabilities to ex-employees at 60billion.
TalkTalk put the sale of its broadband business FibreNation on hold after the announcement. Chief exec Tristia Harrison said: I think the whole sector is pausing.
Insiders warned the telecoms industry will suffer. Julian David, of trade association techUK, said: Renationalisation would immediately halt investment driven not just by BT but the growing number of new and innovative companies that compete with BT.
‘UNMITIGATED DISASTER’
Mr McDonnell inset with Corbyn dismissed the 100billion sum, saying Labours numbers came from the Governments own digital infrastructure review. Unveiling the plan to a whooping crowd at the University of Lancaster, Mr Corbyn said it will be paid for partly by taxing corporations such as Amazon, Facebook and Google.
Mr McDonnells claim that Labour will be copying South Korea was later rubbished.
Insiders say South Korea rolled out fibre broadband then deregulated the market for service companies the opposite of Labours plan. Matthew Howett, of the Assembly Research think tank, said Labours proposal was similar to Australias National Broadband Network, an unmitigated disaster.
It is fraught with delay, complexity and a failure to deliver fast and affordable broadband.
Labours plans could also let terrorists go unchecked, experts fear.
Its Charter of Digital Rights has powers for individuals and collectives to prevent the use of digital infrastructure for surveillance.
Sources warn digital surveillance helps nail criminals. Expert Will Geddes said the plan stops security services from properly doing their job. Whether that is looking into a terror cell or a paedophile ring.
BT chief exec Philip Jansen said Labour’s plan would cost up to 40billion to set up, and another 5billion in yearly revenue
John McDonnell issued a chilling warning to the likes of Virgin Media, Sky and TalkTalk hinting they could be absorbed into the nationalised firm within the ambit of British Broadband if they refused to co-operate
