British telecoms group BT has agreed a new plan to pay down its ballooning pension deficit and signed off on an upgrade of its fibre network.
The company is trying to put its finances in order ahead of a key football rights auction and a deal to buy mobile network EE.
Announcing the settlement earlier than expected, BT said it would pay £2 billion into the scheme over three years to pay down a deficit that has jumped to £7 billion from the £3.9 billion it revealed in 2012, following a review.
Analysts had expected the deficit to rise as record low interest rates and central bank bond buying programmes crimped returns.
With the pension plan in place, BT said it would upgrade its fibre broadband network to achieve speeds of up to 500 Mb across most of the UK within a decade.
The changes come ahead of an auction in February for Premier League broadcast rights and as BT negotiates a deal to buy mobile operator EE for £12.5 billion.
