BTwatch May/June 2010 — supplier activity summary
June 23, 2010
See the BTwatch 2010.05 Report for more details.
| Unit | Supplier | Activity | Page |
| BT Business | Nuance | Natural language call-steering | 21 |
| BT Engage IT | Next Generation Data Limited | Data centre | 7 |
| BT Fleet | National Mobile Windscreens | Vehicle glass service partner | 12 |
| BT Global Services | BigFix | Service delivery platform | 28 |
| BT Global Telecom Markets | TynTec | SMS hubbing technology | 23 |
| BT Group | Open-source software | Adoption | 11 |
| BT Group | Microsoft | SharePoint collaboration platform | 12 |
| BT Retail | OnLive | Cloud gaming | 14 |
| BT Retail | OpenPeak | Home hub terminal | 15 |
| BT Retail | Arqiva | DTT capacity | 16 |
| NGI (BT Italia) | Alvarion | WiMAX expansion | 29 |
BTwatch issue 2010.05 Executive Brief
June 23, 2010
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Executive Brief from BTwatch, issue 2010.05. Click through for: an Extract from this month’s report; the Issue Snapshot; or to contact us for more information about the full 40-page issue, this industry standard monthly report service, and ongoing subscription access.
- The European Union broadly backed Ofcom plans to enable BT Group to offer a virtual unbundled service for fibre through Openreach. However, the European authorities stressed that this should be seen as a stop gap measure until full physical access to the BT network becomes viable. In a potentially significant development, the EC also called on Ofcom to more closely regulate the product’s pricing on a cost basis, rather than using the less restrictive equivalence of inputs basis as planned. [pp.8-9.]
- BT announced a strategic agreement with OnLive, a gaming company that streams live video games into the home, with BT the exclusive UK partner. The “cloud based” gaming service could be streamed to home computers or televisions. BT also became a small shareholder in the US company, which is not expected to launch a UK service until spring 2011 at the earliest. [p.14.]
- BT Global Services launched a BT Virtual Data Centre in Brazil, offering major corporations and government bodies a “dynamic and virtualized infrastructure platform”. Customers will be offered access on a “try & buy” basis, but there are practical restrictions on the type of data stored using the infrastructure as-a service offer. BT is thought to be commercialising internal virtual data centre systems for the new offering, which is supported by NetApp. [p.27.]
- BT committed to an additional £1bn fibre investment that will see Openreach attempt to bring a form of fibre connectivity to two thirds of the UK population by 2015. The investment, which will be contained within ongoing capex levels of around £2.6bn, is dependent on the economic environment, but nevertheless represents a clear sign that momentum is building, and that the economics of the rollout are becoming more viable. Meanwhile Greater London is expected to see fibre connectivity available to 87% of homes and businesses in time for the London Olympic Games in 2012. [pp.33,35.]
- BT GROUP released its results for FY09-10, which were warmly received amidst signs that cost cutting programmes are beginning to improve the bottom line, although genuine growth still remains elusive. Full coverage of the results and the accompanying Investors Day are to feature in the upcoming special BT Report .
- BT is said to be planning to dispose of its 31% stake in Tech Mahindra by the end of the current financial year, but is holding out until Satyam is fully integrated in the expectation of a higher valuation. [p.4.]
- BT became more deeply embroiled in a pay dispute with the Communications Workers Union, as a revised two year salary deal failed to prevent the union commencing a vote on strike action. BT is offering CWU members a 2% raise this year, followed by 3% in 2011, plus cash bonuses, but the union is holding out for 5% in 2010. BT is reportedly looking to bring in support from contractors Carillion and Telent, and return management to frontline roles, should a strike be called. [pp.5-6.]
- BT settled a legal dispute with chipset maker MediaTek over alleged unauthorised use of BT patented technology. [p.7.]
- The adoption of open source software within BT was reported, and the executive responsible acknowledged that initial internal resistance had to be overcome, but now the methodology is being used more frequently to drive innovation. BT is also aiming to improve internal communication on projects through wider use of social networking through deployment of Microsoft’s SharePoint. A contract bid management system is also being introduced using the Microsoft software. [pp.11-12.]
- BT RETAIL efforts to more proactively engage with customers through social networking sites drew criticism in a newspaper report, with claims that practices are “Big Brother ish”, amidst suggestions that they may breach data protection and customer privacy obligations. [p.13.]
- There were suggestions that manufacturer OpenPeak is involved in the creation of a new “smartphone for the home” from BT, although the telco indicated that much of the development in the proposed new device is being conducted internally. [p.15.]
- BT signed a deal with Arqiva that will see it provide digital terrestrial television capacity for BT to broadcast Sky Sports services. The telco is appealing to the regulator to have the remainder of BSkyB’s sports channels included in mandatory wholesaling arrangements, although currently it would not have the channels to broadcast them. [p.16.]
- Project Canvas was cleared by the Office of Fair Trading, which said it had no grounds to consider the activity of the initiative as it was not a merger. Canvas partners’ framing of its services in terms of an open platform showed that the lessons of the previously blocked Project Kangaroo had been learned, according to broadcasting rivals. BT is working with MIT on developments for BT Vision that could see the service become an example of “social television”. [pp.17,19.]
- Nuance Communications won a contract to provide natural language call steering solutions to BT Business. [p.21.]
- tw telecom, a Time Warner Cable spin-off, was named as a customer for Cisco Telepresence conferencing services using the BT Global Video Exchange platform. [p.21.]
- BT GLOBAL SERVICES signed a new deal with Olympic Broadcasting Services London, to deliver broadcast and media network access for the London Games in 2012. The work is said to be in addition to that entailed in BT’s role as the event’s Official Communications Services Partner. [p.23.]
- BT Onevoice , BT’s unified communications offering, was in the spotlight with the introduction of a version of the service featuring new voice solutions from the telco’s Ribbit subsidiary. Onevoice Ribbit is expected to help virtually extend the scope of internal communications networks through a private cloud. Cisco also highlighted its role as a platform provider for the international launch of the Onevoice offering. [pp.24,25.]
- BT named mobile interaction service provider TynTec as a partner within its BT Global Telecom Markets portfolio, while BigFix, an IT infrastructure management specialist, is to provide Global Services with a service delivery platform for its BT MobileXpress product. [pp.23,28.]
- Asia-Pacific was named as a key investment destination for BT Global Services, as it aims to return to growth. A further 300 staff could be added to BT’s regional operations as it chases market share in a growing £8bn market. BT additionally hopes to partner local firms looking to expand outside the region. BT is also expanding the availability of its Radianz hosting services for financial services customers in Singapore, in partnership with one time investment StarHub. [p.29.]
- BT WHOLESALE won a contract extension to provide white label telephony and broadband services to Scottish & Southern Energy. [p.31.]
- A global version of the IP Exchange offering was launched by BT Wholesale. This enables VoIP and TDM calls to be connected seamlessly and is already in use with 100 service providers in the UK. The potential for offering services to mobile operators delivering IP originated GSM text messages was flagged. [p.32.]
BTwatch, issue 2010.05 snapshot
June 23, 2010
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Snapshot of BTwatch, issue 2010.05. Click through for: the Executive Brief from this month’s report; an Extract from the issue; or to contact us for more information about the full 40-page issue, this industry standard monthly report service, and ongoing subscription access.
Table of Contents
4 BT Group
4 Associates and investments
4 BT still planning Tech Mahindra sale
5 Employment
5 CWU strike threat intensifies at BT
5 Tech Mahindra
5 Tech Mahindra named Convergys partner
6 Management hard-line faces executive pay backlash
6 5,000 figure put on predicted job cuts
6 Awards and accreditations
7 Legal
7 BT settles dispute with MediaTek
7 Operations
7 NGD data centre uses fully renewable energy
7 Awards and accreditations
7 Cardiff IDC wins green award
8 Regulation
8 EC backs Ofcom plan to require BT to share fibre access
8 BT Fleet
8 IT
9 EC requires cost-based pricing restrictions
9 Suppliers
9 BT clearance of Chinese software acceptable in India
9 People
9 Society
11 Systems
11 BT looks to open source adoption
11 Sponsorship
12 BT to rollout SharePoint social networking for staff
12 Suppliers
12 BT Fleet selects National Mobile Windscreens
13 BT Retail
13 Customer service
13 Proactive customer contact reopens privacy controversy
13 Directories
13 BT cuts size of phone book…
13 …and sees value in traditional business
14 Digital Home
14 BT ties with OnLive for cloud gaming
14 Fixed-line
14 Price rises predicted for fixed‑line calls
15 BT linked to OpenPeak for new home “smartphone”
16 Television services
16 BT signs Arqiva for DTT capacity
16 BT appeals Ofcom BSkyB ruling
17 OFT clears Canvas, but TV distributors unhappy
19 BT Vision ponders internet development
20 BT Vision launches Film Club
21 BT Business
21 BT Business selects Nuance solution
21 An important element of continuing transformation
21 BT Conferencing
21 BT and Cisco partner Time Warner unit for telepresence
21 BT Business
22 BT Ireland
22 Sutherland on BT Ireland
23 BT Global Services
23 Contracts
23 BT trumpets Olympic broadcast role
23 Products and services
23 TynTec added to Global Services portfolio
24 BT pushes VoIP as Ribbit integrated into Onevoice
24 Ribbit
25 Cisco highlights Onevoice role
25 Awards and accreditations
25 Forrester recognises BT managed services
27 BT VDC launched in Brazil
27 Contact centres
28 Suppliers
28 BTGS selects BigFix platform
28 Contracts
29 BT International: Asia-Pacific
29 BT to recruit to capture growth in Asia Pacific
29 Livingston on Asia expansion doubts
29 BT International: Europe
30 BT Diamond IP
30 Interop selects BT Diamond IP
30 BT Radianz
30 BT expands Radianz in Singapore
31 BT Wholesale
31 Contracts
31 Scottish & Southern Energy signs renewed contract
31 Managed services
31 Orange linked to IPTV after BT switch
32 Products and services
32 BT launches global IP Exchange
33 Openreach
33 Fibre
33 BT commits to additional fibre investment
33 Reaction
33 Network
35 London fibre to reach 87% by Olympics
36 BT announces fibre-based broadband launches
37 Index
EC backs Ofcom plan to require BT to share fibre access
June 23, 2010
.
Extract from BTwatch, issue 2010.05. Click through for: the Executive Brief from this month’s report; the Issue Snapshot; or to contact us for more information about the full 40-page issue, this industry standard monthly report service, and ongoing subscription access.
EC backs Ofcom plan to require BT to share fibre access
The European Commission (EC) announced that it approved proposals from Ofcom to mandate virtual unbundling of BT’s fibre network (BTwatch, 2010.03), but has called on the regulator to move to full unbundling as soon as it is technically and economically possible. The European body looks to have overruled Ofcom on plans to allow BT to offer unbundled fibre services free of regulatory price controls, however.
Under Ofcom’s current proposals, BT will be obliged to provide “virtual” access to its optical fibre infrastructure to alternative operators though a virtual unbundled loop access (VULA) product. This is intended to offer rival telecoms firms a connection to the BT network, similar to that currently available through local loop unbundling (LLU). Ofcom said that the virtual solution allows LLU-like levels of product differentiation and innovation similar and maintains competition on UK broadband markets as the roll-out of next generation access networks gathers pace.
However, the EC also argues that full unbundling is likely to encourage communication providers to rollout fibre networks faster than BT. It was reported that the exception to allow virtual unbundling will last four years. However, Ofcom is already proposing that deeper access to the BT infrastructure, which would enable competitors to build their own fibre networks, must be made available by BT within months of a regulatory final determination on fibre access, with mid-2011 currently looking likely to be the deadline for its introduction.
Neelie Kroes, the European telecom commissioner, said that, given the “special circumstances” she supported the initial virtual structure, but emphasised that that virtual unbundling is only a temporary measure.
“In this specific instance, virtual unbundling seems the best option to safeguard competition and enable consumers to benefit from a wider range of services provided over next-generation fibre infrastructure…This interim solution is not a long-term alternative to physical fibre unbundling, which should be imposed as soon as possible.”
– Kroes.
BT, which has been moving towards virtual unbundling on its own, and committing to opening up its ducts and offering investment partnerships to rivals (BTwatch, 2010.02), said that it believes the current virtual unbundling model is suited to the requirement of the market.
“Our view is that the current Virtual Unbundled Local Access product meets the needs of the industry, but we will obviously work closely with Ofcom going forward.”
– BT statement.
EC requires cost-based pricing restrictions
When it had proposed the introduction of VULA, Ofcom had indicated it would not regulate the pricing of the product by Openreach, beyond requiring long-running equivalence of inputs measures are in place (which entails wholesale customers having access to exactly the same products, at the same prices and using the same systems and processes, that are available to BT). The EC has said it disagrees with this approach, however, and is calling for cost-oriented pricing, which would mean that Openreach prices will be regulated with set levels of reasonable return decided based on specific factors that contribute towards the costs of rolling out the service. The EC said that this would “drive both competition and investment in [next generation accesses]“.
[Further reference:
Commission accepts UK regulator proposal to mandate virtual unbundling of BT's fibre networks but requests full unbundling as soon as possible -- European Commission, 1 June 2010;
BT will have to share last mile fiber with competitors -- FierceTelecom, 3 June 2010;
EC calls on BT to open fibre networks to rivals -- v3.co.uk, 2 June 2010.]
BTwatch, issue 2009.08 snapshot
October 20, 2009
Issue: 2009.08
Covering: mid-September to mid-October 2009
Published: October 2009
Next issue: November 2009
Mapping the activity and strategy of the UK’s largest telco. A unique monthly report for the industry.
EXECUTIVE BRIEF
- MAIN STORIES: BT is rumoured to be discussing at board-level a bid to acquire broadcaster ITV. While it could be just a rumour sparked by BT Non Executive Director Tony Ball being linked to the Chief Executive role at ITV, BTwatch considers there could be logic in a tie-up, if BT is willing to spin-off its Retail consumer business into a new entity alongside the television assets, to create an unshackled media player, in the hope of replicating the striking success of BT’s last spin-off, O2. [p.3.]
- BT announced it is increasing its target for the number of sites to be passed by its fibre-to-the-premises network by the end of 2012, from one million to 2.5 million. The increase, which does not affect the telco’s overall target of having ten million sites with access to some form of fibre network, appears to have been driven by a need to reconsider FTTP testing in the wake of the collapse of the construction industry and, BTwatch suspects, due to communication provider customers of both Openreach and BT Wholesale showing significantly more ambition than BT itself. [pp.30-34,36.]
- Ofcom is lifting regulatory restrictions on BT’s pricing of narrowband telephony products, opening the door for BT to more aggressively price and market bundles of previously price controlled fixed-line services to consumer and business customers. While BT promised a “price war” BTwatch suspects the relaxation of regulation will principally benefit defensive plays. [pp.10-11.]
- BT Wholesale announced a five-year managed services contract to provide the fixed-line element of a converged communications solution for SME customers, to be launched by Telefónica O2 UK. BT will also design, manage, and operate a dedicated order portal and service management centre for O2 sales teams. [p.27.]
- BT GROUP: BT saw its credit rating upgraded by Credit Suisse on expectations of further cost-cutting and a mid term revenue growth. The broker suggested that BT may ultimately have to consider the fairly radical step of compulsory redundancies. [p.4.]
- STRATEGY & OPERATIONS: BT signed an MoU for a strategic cooperation with the School of Economics and Management at Tsinghua University in Beijing. During a forum in Paris, BT networks senior executive George Nazi reiterated BT’s view that long-term commercial models where service providers pay for quality of service on network infrastructure are essential. [pp.6,7.]
- A business intelligence suite from JasperSoft is being used to support BT’s Statistical Data Warehouse, which is managed by Unisys. [p.7.]
- BT RETAIL: BT Television and Online services Chief Executive Marc Watson conceded — inevitably — that BT would not reach its target of more than two million BT Vision customers by the end of 2010, from its current base of fewer than 450,000. The admission was exploited as an opportunity to have another dig at BSkyB prices for its premium content, but there was also recognition that BT has failed to effectively demonstrate the value of the service to consumers. [pp.8-9.]
- An on-demand shopping channel was launched on BT Vision , offering a range of products in different shopping categories, which can be accessed and ordered around the clock. [p.9.]
- BT Retail continued to reject calls for alleged illegal file sharers to have their internet services withdrawn, in the face of accusations from the British Phonographic Industry that it is failing to act against lawbreakers to protect its own profits. BT described the action demanded as an abuse of legal rights, impractical, and disruptive to legitimate use of peer-to-peer services, as the telco attempts to rebuild its privacy credentials following the Phorm debacle. BT also teamed with the Trading Standards Institute to call for stronger action on “slamming“, shortly after Ofcom unveiled proposals for a tougher code of practice. [pp.13,16.]
- BT Business continued to build its range of services in the search sphere, with the launch of BT SearchSmart, a search engine marketing service for SMEs operated in conjunction with search agent Latitude. BT’s support for the supposed “21st century business card” .tel domain was highlighted by Telnic. [pp.14,15.]
- BT GLOBAL SERVICES: Ex-Getronics executive Rogier Bronsgeest was named as President of BT Global Services’ Customer Service Operations, and will also sit on the BT Operate Executive Board. [p.17.]
- Analysts Ovum placed BT Global Services at the top of its Enterprise Strategy Scorecard , praising the division for its customer service and product innovation. However, rivals were close on BT’s heels. [pp.18-19.]
- BT won a two-year contract to provide IT helpdesk and support services to the Manpower employment services business, in Australia and New Zealand. [p.19.]
- Liverpool Direct Limited, the BT public private partnership with Liverpool Council, was criticised in a report that suggested the finances of the venture are still unclear, eight years after its launch. [p.20.]
- BT is said to be in talks with Indian energy company PowerGrid, with a view to using its fibre-optic network as an alternative to traditional network suppliers, for its multinational corporation customers on the sub-continent. [p.21.]
- Local operator EXATEL was named a BT Alliance member in Poland. BT highlighted its 20 years of operations in the Spanish market, which has seen the local BT unit grow to report annual revenue of EUR500m, tens of thousands of business customers, and a position as the main challenger in the country’s enterprise data transmission market. BT also indicated it is seeing continuing success in its biggest market outside the UK — Italy — with significant contracts with BNP Paribas and Fiat recently renewed. [pp.21,22.]
- BT Benelux launched a Carbon Impact Assessment service that considers the contribution of networked IT services to carbon emissions, and offers practical solutions to reduce energy consumption. New business-continuity solutions were also launched over BT’s 21CN global platform. [pp.24,26.]
- eIQnetworks was selected to provide security monitoring and reposting services for BT iNet’s LAN customers. Storage solutions provider NetApp trumpeted its role in the new BT Virtual Data Centre service, intended to act as a single hosted platform for corporate customers’ IT resources. [pp.24,25.]
- BT WHOLESALE: BT Wholesale announced a new rollout target for its ADSL2+ network, which will see it extend its national footprint from an expected 55% in spring 2010, to 75%-coverage by spring 2011. The new goal will see BT reach in 18 months’ time where many of its competitors are now, in terms of rollout. BT Wholesale is also planning price cuts to encourage greater uptake of upgraded broadband services. [p.28.]
- OPENREACH: Openreach is extending trials of its Broadband Enabling Technology , which is a fixed-line solution delivering stable 1Mbps broadband speeds at distances of up to 12km from an exchange, and is believed to be in talks with the Scottish government on upgrading rural exchanges. [pp.29-30.]
- The ongoing dispute between Openreach and its engineers over working hours saw reports that the access services division is to call in contract workers after employees rejected proposals agreed upon by BT and the Communication Workers Union. [p.36.]
EXTRACT
BT linked to ITV bid
There were rumours that BT Group is considering a bid for broadcaster ITV. Reports stemmed from a Sunday Express newspaper article citing unnamed insiders as suggesting the possibility is being discussed at board level at BT.
While BT remains in a weak position financially, the prospect of the company raising funds has been raised, although getting its house in order is more likely the priority rather than an acquisition (see separate report). The presence of BSkyB as a shareholder could also make a BT bid unlikely to be successful.
The speculation regarding a BT bid for the broadcaster, which has a market capitalisation of around £2bn, could have been fuelled by the presence of Tony Ball as a BT Non-Executive Board member. Ball, a former BSkyB Chief Executive, has been linked with the vacant Chief Executive role at ITV.
Tony Ball had been thought to be close to signing a contract to become ITV Chief Executive, but negotiations apparently stalled on terms and conditions.
Could a deal be beneficial to BT as a group?
While BT, like many telcos, has a questionable record in managing content, the acquisition could put the company on a stronger footing to compete with BSkyB and Virgin Media in UK consumer markets through control of ITV content.
Rather than an acquisition that would see ITV become part of the BT Group, another possible scenario, in BTwatch’s view, could be the creation of a new entity merging the consumer element of BT Retail and ITV to form a new, retail- and content-focused UK converged communications player, with its own independent management and focus.
The spinout of O2 Group during BT’s last financial crisis demonstrated what a sluggish under-performing consumer business could do when liberated from the demands of being part of a regulated incumbent; and it could be that BT management are pondering whether the same trick can be repeated. This would leave the stripped back BT to focus on access services through Openreach, managed services through BT Wholesale, and developing a viable long-term IT services and international networks business through the troubled Global Services unit.
While regulators and the government might even welcome such a move, in propping up ITV and creating a more viable national champion, pension liabilities could prove a huge hurdle.
[Further reference: BT considering bid for broadcaster ITV - report -- DM Europe, 8 October 2009; BT rumoured to be reviewing the option of buying ITV -- SimplifyDigital.co.uk, 5 October 2009; BT targets ITV takeover -- Sunday Express, 4 October 2009; Talks stall over top job at ITV -- Financial Times, 10 September 2009.]
TABLE OF CONTENTS
3 BT Group
3 Acquisitions and disposals
3 BT linked to ITV bid
3 Could a deal be beneficial to BT as a group?
4 City reports
4 Community
4 BT awards laptops to community projects
4 “…out of context…”
4 Rake on Ian Livingston and BT turnaround
4 Brokers’ reports
4 Credit Suisse upgrades BT
5 Regions
5 New South-West region head named
5 Tech Mahindra
5 Environment
5 BT holds exhibitions for “Wind of Change” project
6 Appointments
6 Executives
6 Fibre
6 Strategy and operations
6 Research
6 BT signs MoU with Tsinghua University
6 Ribbit
6 Ribbit to develop for Google Wave
7 Suppliers
7 BT suppliers feature in TechTrack 100
7 Strategy
7 BT opposes net neutrality
7 BT and Unisys select Jaspersoft
8 BT Retail
8 Advertising
8 Appointments
8 BT Television Services
8 Watson accepts BT Vision targets unreachable
8 BT accepts the inevitable
9 Broadband
9 BT Government
9 Echoes of BT Fusion marketing woes
9 BT Vision launches shopping channel
10 Pricing and tariffs
10 Ofcom narrowband ruling lifts ban on BT bundles
11 Community
11 Rivals unhappy with ruling, observers expect better value
11 BT promises “price war”, BTwatch yet to be convinced
11 Ofcom to conduct further work in unresolved areas
13 Competitors
13 Virgin Media considers VDSL2 rollout
13 Privacy
13 BT criticises file-sharing bans again, as BPI slams BT
13 BT pursuing the sensible PR approach this time
14 BT Business
14 BT Business launches SearchSmart
15 BT Business launches “Business Pulse” survey
15 Telnic highlights BT Business .tel support
15 BT Ireland
15 BT criticises Eircom court action
16 Regulatory
16 BT calls on Ofcom to tackle “slamming”
17 BT Global Services
17 Appointments
17 BTGS appoints Bronsgeest to customer service role
18 BT Global Financial Services
18 ELX links to Radianz infrastructure
18 BT closer to closing RadianzNet
18 Awards and accreditations
18 Ovum rates BTGS as “global leader of global leaders”
19 BT Health
19 Report not as rosy as it may first appear…
19 Contracts
19 BT wins two-year Manpower contract
20 Public sector contracts
20 LDL joint venture under fire
21 BT International: Europe
21 Virtual data centres planned for Italy
21 BT International: Asia
21 BT in talks with PowerGrid for broadband capacity
21 EXATEL named BT Alliance partner
22 BT highlights 20 years in Spanish market
22 BT renewing contracts in Italy
24 BT Benelux launches Carbon Impact Assessment service
24 BT iNet
24 BT iNet Selects eIQnetworks for security monitoring
25 Partners
25 NetApp trumpets virtual data centre role
26 Products and services
26 BT offers new business-continuity services
27 BT Wholesale
27 Managed services
27 Contracts
27 BT wins O2 contract for launch of SME fixed-line service
28 Products and services
28 BT to extend ADSL2+ footprint to 75% of country
29 Openreach
29 Customers
29 Union Street heralds 100th WLR3 order
29 Broadband
29 Openreach launches extended BET pilot
30 Fibre
30 TalkTalk joins fibre trials
30 murphx trumpets fibre trial role
30 BT in talks with Scottish authorities on exchange upgrades
30 BT accelerates fibre-to-the-premises plans
32 Suppliers
32 Carillion confirms BT contract
32 Lower costs enabling the rollout…
32 …but public funds still important
33 BT Wholesale customers driving demand?
33 Analyst reaction
34 Openreach announces FTTP trial sites
34 Communications provider private investment pondered
35 BT sets out FTTC timeline
36 Openreach provides FTTP pricing details
36 Employment
36 Hours dispute sees Openreach consider contract staff
37 OTA2
37 OTA2 updates for September 2009
38 Index Read more
BTwatch, issue 2009.07 snapshot
September 14, 2009
MAIN STORIES: Tim Whitley, BT Corporate Strategy Director, discussed the prospects for Digital Britain and BT’s fibre plans. He indicated that BT is confident of winning the NGN battle with Virgin Media due to the potential of apparently superior upload speeds promised by BT’s customised VDSL technology. Whether government funds will be available to spread the reach of fibre is uncertain after reports that the government’s proposed levy could be postponed, or dropped altogether. [pp.8-10.]
Royston Hoggarth, Head of BT Global Services UK, is to leave the post after less than one year, to be replaced by Mark Quartermaine. It appears to BTwatch that Hoggarth and BT were merely marking time over the past year as the François Barrault-made appointment always appeared a mismatch. [p.28.]
BT Wholesale won a managed services contract with Vodafone UK that will enable the cellco to launch unified communications solutions for the SME sector. The deal, which builds on existing agreements between Vodafone and BT Wholesale, suggests continued success for the BT division’s managed services strategy, but could be bad news for the BT Business retail operation as competition in its sector intensifies. [p.33.]
BT Wholesale announced the introduction of Wholesale Broadband Managed Connect over IPstream Connect , a new offering that will enable its ISP customers to use a single backhaul link to deliver national broadband services based on a combination of legacy, ADSL2+, and fibre offerings from BT, which could accelerate adoption of BT’s next-generation services. [p.34.]
Carillion was awarded a £1bn networks installation and maintenance contract by Openreach. The construction and facilities management company will work on the contract with technology partner Telent, the company that emerged from the wreckage of Marconi. [pp.39-40.]
BTwatch, issue 2009.06 snapshot
August 10, 2009
MAIN STORIES: BT’s Q1 FY09-10 results were positively received, though largely on the basis that they could have been worse. Cost-cutting initiatives appear to be progressing ahead of schedule, but there are concerns about over-pruning the company’s future prospects. The path of the company in the Livingston era has so far followed predictions made by BTwatch on his ascent to the role, with signs emerging that this is set to continue. [pp.3-17.]
BTwatch, issue 2009.05 snapshot
July 16, 2009
MAIN STORIES: The Digital Britain report on the future of UK media and communications was published, painting a picture of the development of next-generation networks in the UK that looks very favourable for BT, although BTwatch considers the lack of ambition and level of compromise means the initiative could ultimately prove to be a missed opportunity. However, there were plenty of positives for BT, which could see regulatory pressures ease further as Ofcom is charged with encouraging investment as well as promoting competition. A £6-per-year fixed-line levy looks set to be introduced to effectively subsidise BT’s fibre rollout; and public money is also to be made available for bringing universal 2Mbps broadband across the country. [pp.5-12.]
Dan Marks, head of BT Television Services, resigned from the company and is to be replaced by his deputy, Marc Watson. Marks left BT Retail claiming frustration that lack of regulation in the pay-TV market has meant that BT Vision has been unable to make a significant impression. Chief Technology Officer Matt Bross looks set to follow Marks out the door in BTwatch’s view, after the last vestiges of significant responsibility appear to have been stripped from him as his Chief Technology Office BT Innovate is merged into BT Design. [pp.18-19,29.]
Following rapidly on from criticism that it was throttling broadband speeds, BT Retail announced it was offering to upgrade its customers to ADSL2+ for the same price as they currently pay. The upgrade requires a new contract and was made available immediately to BT Business customers. BT is advertising the service as up-to-20Mbps, although the claim is optimistic, and Charles Dunstone of rival Carphone Warehouse noted that offering speeds far beyond those that can realistically be achieved by the average customer’s line is likely to lead to dissatisfaction. BT-owned PlusNet paused its ADSL2+ rollout due to unexpected technical problems. [pp.20,26-27.]
It was confirmed that BT Wholesale is to manage the network assets of Kingston Communications, as part of a deal that could be worth up to £750m over the coming ten years. [p.49.]
BTwatch, issue 2009.04 snapshot
June 16, 2009
RESULTS: BT Group reported its results for the full year to 31 March 2009, with the worse-than-expected £1.3bn Q4 write-down dominating most of the headlines, and the potential £7bn-£11bn pension deficit and accompanying £525m annual top-up payment capturing the rest. BT’s new mantra of ‘three-out-of-four ain’t bad’ was reiterated with the company insisting that all divisions aside from BT Global Services are performing well. However, BTwatch noted sales weakness behind the painful Global Services’ housekeeping exercise and pressure on cash flow. Performance was below expectations, and the reduction in the BT dividend was greater-than-expected. [pp.3-25.]
BTwatch, issue 2009.03 snapshot
April 29, 2009
MAIN STORIES: Tech Mahindra, the Indian IT outsourcing business in which BT holds a 31%-stake, acquired a majority stake in scandal-hit services business Satyam, giving BT a 16%-indirect share in Satyam. The deal has split opinion as to whether it was a good move by Tech Mahindra, or whether potential costly legal actions and financial restatements could bring the buyer down. There were suggestions that the move could hasten BT’s exit from the Indian company, although BTwatch considers taking a long-term view could be wiser. [pp.3-6.]
