BTwatch Report #226 October 2011 Executive Brief
November 1, 2011
|
- Carlyle Group is said to have re-entered discussions regarding the acquisition of a share of BT Group’s stake in Tech Mahindra, as a BT disposal looks imminent. [p.4.]
- BT Retail was given a mid-November deadline to put in place blocks to prevent customers accessing the Newbin2 file-sharing website, following earlier High Court action. As the order to filter access was put into action, observers questioned the principles and practicalities behind website blocking, and BT was involved in further debate on restricting internet content with moves to support UK government initiatives on preventing children from accessing pornography online. The telco is to require subscribers to actively accept or reject its parental control software. [pp.8-9.]
- BT Global Services trumpeted plans for expansion of services in Latin America. The telco is opening new centres of excellence across the region and unveiling new solutions as it aims to build on the momentum from recent major deals on the continent. The telco noted the willingness of public bodies to engage with new providers in the market. The expansion is said to emulate BT’s work in building its Asia-Pacific business, although BTwatch notes that the telco’s Latin America operation has been grabbing the headlines while little news of substance has emerged from the higher-profile APAC business. BT in Asia-Pacific has trumpeted its purported progress since the region was singled out for investment, and announced a new innovation showcase in China, but the revenue-generating achievements in Latin America emphasised the modesty of its Asian growth. [pp.17-20, 22, 24-25.]
- BT trumpeted the progress of its Virtual Data Centre offerings at a cloud computing conference. The telco emphasised benefits for customers, such as shifting carbon emission burden, and the ability to house data both inside and outside the country of origin, and stressed that it was designing its data centres to provide physical reassurance for customers. It was also noted that, by working with smaller systems integrators in Europe, BT is able to tap into the SME market in the region, which has previously been considered inaccessible. [p.27.]
- BT’s public-private initiative in Cornwall, to deliver next-generation network services, is said to be ahead of schedule with the first communities to be connected to Superfast Cornwall services in December 2011 — three months early. Positive news on progress in Cornwall could be a boost for BT’s bid for a similar project in Wales, where the telco is looking to win the tender for the £57m Welsh Assembly-backed project with commitments to bringing “up to” 20Mbps broadband to half the of the principality by 2015. [p.31.]
- BT is said to be interested in outsourcing more basic legal functions, following the success of an agreement with UnitedLex. The Group is also seeing benefits from shifting management of legal staff from divisional to functional focus. [p.5.]
- The BT Group pension is expected to be in the spotlight again, as funds are affected by fluctuating financial markets. [p.6.]
- Cisco discussed its role in providing services to London Olympics service providers BT and Atos Origin. It was noted that older, but tried-and-tested, equipment is being relied on to deliver essential networks. BT is also expected to have a team of 600 supporting the event. [p.7.]
- BT Business is highlighting the inclusion of Wi-Fi access in its SME-targeted broadband packages, and encouraging businesses to share wireless broadband access. Coffee shop chain Starbucks is making access to BT Openzone Wi-Fi more widely available, and John Lewis is also offering in-store Wi-Fi in partnership with Openzone. [pp.8, 13.]
- BT saw continued bad press for its pricing policies, with recent price rise complaints followed by publicity concerning older tariffs that promised lower mobile call costs but now have higher evening mobile rates than those paid by customers outside the package. [p.11.]
- BT Ireland won a EUR9m contract to provide a nationwide IT network to the Department of Social Protection. [p.13.]
- BT-owned budget-brand ISP Plusnet switched its internet security platform to Cloudmark, from Cisco’s IronPort platform. [p.14.]
- BT Global Services completed a capacity upgrade for the NHS N3 internet gateway, meaning capacity has nearly trebled to 5Gbps since the beginning of the year. [p.15.]
- BT received payments of nearly £550m from the NHS in the 2010-11 financial year, accounting for more than half the health service’s spending with its top 100 suppliers. [p.15.]
- BT One Voice Anywhere was launched in the US market, promising internet voice solutions built on the Ribbit platform. The solution launch is the first referencing Ribbit since the business was brought closer in-house by BT, with promises of greater integration with its commercial offerings. [p.21.]
- Eckoh Technologies secured a three-year extension for its voice recognition services strategic partnership with BT Global Services. [p.28.]
- Openreach detailed plans for the upgrade to its fibre to the cabinet network that will see connection speeds potentially double to 80Mbps. Customer trials are expected at the beginning of 2012, with a formal product launch due later in the year. [p.30.]
- ADVA Optical Networking won another deal to provide equipment to Openreach, with an agreement to deliver a platform for new Optical Spectrum Access products that are expected to support customers’ network expansion plans. [p.32-33.]
BTwatch Report #226 October 2011 Snapshot
November 1, 2011
|
Table of Contents
1 Executive brief
4 BT Group
4 Acquisitions and disposals
4 Carlyle re-enters frame for Tech Mahindra buy
5 Adastral Park
5 Corporate social responsibility
5 Operations
5 Fitz on BT Legal team
6 People
6 New BT director named
6 Pension
6 Pensions seen affecting company performance again
7 Suppliers
7 Cisco explains support role for BT Olympic network
8 BT Retail
8 Advertising
8 Wireless networks
8 Digital content
8 BT given 14 days to block Newzbin2
8 Concerns regarding practicalities and principles behind block
9 Regulatory
9 “…out of context…”
9 BT on social media
9 BT backs UK’s internet parental controls push
11 Pricing and Tariffs
11 Onlive
11 Cloud gaming yet to find the “right formula”
11 Pricing and tariffs
11 BT under fire for “discounted” call prices
12 OnLive seen as threat to usage caps
12 Television services
12 YouView axes marketing and PR staffers, heads
12 Marketing vital in face of delays
13 BT Business
13 Plusnet
13 BT Business customers offered additional Wi-Fi benefits
13 BT Ireland
13 Department of Social Protection picks BT Ireland
14 Plusnet
14 Plusnet selects new anti-spam platform
15 BT Global Services
15 Awards and accreditations
15 BT wins Computerwoche cloud award
15 NHS contracts
15 BT upgrades NHS internet gateway
15 Figures reveal increased NHS spending with BT
17 Awards and accreditations
17 BT trumpets BSI certification first for Smart City
17 BT International: Americas
17 BT sets out LatAm expansion plans, new investment
18 Competitors
18 BT loses £100m Lambeth contract to Virgin/Vodafone
18 New products planned for the market, focused on the cloud
19 Competitors
19 O2 UK squares up to BT in ICT market
19 After gathering momentum BT highlighting region’s potential
20 Powerful incumbents and other new entrants could curb potential growth
20 LatAm deals highlight lack of flagship APAC deals
21 Financial services
21 Radianz adds Kazakhstani and Ukrainian exchanges
21 BT launches BT One Voice Anywhere in USA
21 Continued life for Ribbit
22 BT International: Asia
22 BT opens Showcase centre in Shanghai
24 Harris: Update on APAC expansion programme
24 Key milestones claimed but achievements more modest
24 Growing opportunities from growing customers
25 IDC recognises BT’s APAC growth, although progress underwhelming
26 BT International: EMEA
26 BT appoints new Head of Turkish operations
27 Products and services
27 BT promotes “smart” supply chain
27 Products and services
27 BT trumpets VDC as channel offering
28 Tech Mahindra/Mahindra Satyam
28 Mahindra Satyam to open LatAm delivery centre
28 Suppliers
28 BT renews voice-recognition deal with Eckoh
30 Openreach
30 Fibre
30 Openreach expands Milton Keynes FTTP pilot
30 Next-generation networks
30 Openreach sets out 80Mbps FTCC upgrade plans
31 OTA2
31 OTA2 updates on copper market
31 Superfast Cornwall ahead of schedule
31 BT outlines £57m Digital Wales contract bid
32 Suppliers
32 Openreach selects ADVA for new OSA offering
32 ADVA relationship continues to grow
33 Openreach responding to increasing competition
34 Index
Read more
BT rival begins fibre trials
October 25, 2011
|
Fujitsu Telecommunications Europe has begun trials of its proposed alternative fibre network, which it is hoping to roll out to rural areas across the UK as part of the Broadband Delivery UK (BDUK) programme (BTwatch, #220, #221).
The trials are taking place in Greasby in the Wirral, and participants will see new cabling run into their homes using existing pole and duct infrastructure, with the potential for up-to-1Gbps broadband access, although initial tests will see 100Mbps connections trialled.
Virgin Media welcomed the commencement of the trials by Fujitsu, and is the vendor’s anchor tenant for its new network. The cableco used the opportunity to once again criticise BT plans for fibre rollout. Fujitsu has kept a notably more neutral tone in selling its achievements, mindful of its place as a supplier to BT as well as a rival.
“ BT only offers Generic Ethernet Access on its fibre-optic products at the moment, which means we cannot replicate what we provide across our cable infrastructure as everything needs to be converted into IP [Internet Protocol] delivery. ”
“ Essentially everything then fights for the same bandwidth — like how your DSL broadband will slow if BT Vision needs some of it. The architecture of Fujitsu’s infrastructure supports [Radio Frequency over Glass], which enables us to dedicate specific spectrum for each service. It’s ultimately a better, more flexible service for everyone having that passive open network than to try to use something that’s tightly managed such as BT. ”
– Virgin Media.
The accuracy of the Virgin Media claims is disputable, with signs that the BT-planned network is more flexible than the cableco would like to suggest; but finer details aside, it is significant that work is underway in testing the viability of an alternative to the BT network, as Openreach makes a series of announcements to press its claim as the country’s fibre champion (see separate reports).
BT is clearly raising its game as competition intensifies and moves beyond the hypothetical. It will be interesting to see how Fujitsu manages its position as a partner to both sides of an increasingly bitter argument between two network providers.
[Further reference: FTTH via Fujitsu, Virgin Media and TalkTalk on its way to Greasby -- ThinkBroadband, 30 September 2011; Virgin Media: Fujitsu fibre “better than BT” -- PC Pro, 29 September 2011.]
Read more
BTwatch Report #225 September-October 2011 Executive Brief
October 25, 2011
|
- BT Group could see five competitors as it bids for contracts under the Broadband Delivery UK project, to bring improved broadband coverage to rural areas, following the UK government’s confirmation of firms that have met its pre-qualification requirements. It is notable that the incumbent’s main network infrastructure-owning rivals have chosen not to participate, with Fujitsu emerging as the standout challenger to BT with the appropriate skills, scale, and ambition. The UK Fujitsu business has begun trials of its FTTP equipment, prompting its partner Virgin Media to seize another opportunity to snipe at BT. [pp.5, 38.]
- Openreach revealed new pricing for physical infrastructure access: the proposed costs to communications providers for installing their own equipment using BT’s poles and ducts. The incumbent’s original proposals created a storm of protest, with rivals dismissing them as commercially unviable. Following trials with service providers, and in response to the widespread criticism, BT revised the way it charges for access, which it claims will reduce costs in areas most likely to be in demand for altnets. At the time of its initial proposals, BT insisted its costs were 15% below European averages, and it now claims they are near-40% less than the norm. The time taken to review prices caused grumbling from government, as well as the industry, with belief among communications providers that BT is willing to ensnare final pricing in regulatory wrangles if its offer is not accepted. [pp.34-37.]
- Mobile network joint venture Everything Everywhere trumpeted the start of live trials of LTE network technology in Cornwall, working in conjunction with BT Wholesale. In laboratory trials, the companies are said to have proven capabilities to share resources provided by a 4G network, with field trials expected to provide insight into LTE’s potential to deliver both fixed-wireless broadband and mobile data access. [p.30.]
- Openreach confirmed the commercial launch of FTTP services in pilot areas, although without the service level guarantees likely to be demanded by wholesale customers. The access services division is also working to counter impressions that it is overly focused on building an FTTC network that could rapidly become outdated, by highlighting official clearance for it to take steps to double the maximum speeds offered by FTTC, and detailing FTTP trials examining the potential for 1Gbps services. [pp.31-32.]
- There were rumours that Advent International, a private equity group, is looking at acquiring BT Group’s 23% stake in business process outsourcer Tech Mahindra. Talks are thought to have been underway for several months. BT has been distancing itself from its Indian investment for some time, increasingly looking elsewhere for outsourcing. [p.4.]
- A BT software engineer provided insight into how BT is learning to accept open source software at the core of services. Interestingly, the telco is reversing its practice of testing products internally before commercialising them, opting to trial software with customers before considering whether it meets the particular demands of a national fixed-line operator. [p.6.]
- A BT Group attempt to enmesh cableco Comcast in a patent infringement case resulted in the US company launching a counter-suit demanding the relevant BT patents be voided. [p.7.]
- BT Retail could see claims on broadband connection speeds tempered by new ASA guidelines, which suggest advertisers can only claim maximum speeds that are achievable by at least 10% of customers. Adoption of the guidelines could see ADSL2+ claimed speeds drop from 20Mbps or more, to around 13Mbps. Virgin Media, whose network does not suffer the same disparity between theoretical and practical connection top speeds, was predictably buoyed by the decision. A silver lining could be that the changes also make BT’s BT Infinity fibre offering stand out, too. [pp.11-12.]
- BT Retail demonstrated little progress in quarterly performance within Ofcom’s customer complaints review, although remaining ahead of major rival TalkTalk. A report on BT’s multichannel approach to dealing with customer problems indicated progress on adoption of a genuinely multichannel approach, and continued advances towards more efficient resolution. However, it appears that the company is improving from a weak base. [pp.13-15.]
- Newzbin2, the pirated content distribution website that threatened to hack and disable BT’s internet filter Cleanfeed, claimed to have successfully circumvented BT’s internet controls, and offered to make its solution available to others. BT and TalkTalk’s legal battle to overturn obligations being placed on major ISPs under the UK’s Digital Economy Act flickered back into life, as a right of appeal was granted, following earlier halting of legal review. [pp.15-16.]
- BT Openzone promised to greatly expand its Wi-Fi network in London, ahead of the 2012 Olympics. While there are plans for new hotspots using bus stops and phone boxes, and to increase coverage on the London Underground and via ongoing talks with borough councils, BT’s claims for coverage continue to see a major role played by shared access on customers’ Wi-Fi equipment in homes and businesses. [pp.19-20.]
- BT Business is continuing its drive to build its IT business via SMEs, with a new financing scheme. The Direct IT sales division entered a distribution agreement with VoIP player snom. [pp.21-22.]
- BT detailed its “exclusive” UK partnership with cloud-gaming company OnLive, with promotional offers for subscribers. However, the on-demand gaming player also has a UK partnership with a major gaming retailer, meaning BT may need to be more innovative in its approach in order to exploit its early-mover advantage. [pp.23-24.]
- BT Global Services confirmed a seven-year extension to an agreement to provide services for BASF. The chemical group is a long-standing client and, while the Global Services division increasingly focuses on growth through new customers, the deal indicates there is still value to be extracted from existing deals. [p.25.]
- BT launched its BT Unified Trading voice offering for the financial services sector in twelve new financial centres, expanding the portfolio available over its BT Radianz cloud network. iWay Software trumpeted its role in providing secure encrypted messaging solutions to BT Global Services for use in products aimed at the financial community. [pp.27, 29.]
- BT in Africa signed a capacity purchase agreement with FibreCo, a joint venture in South Africa, creating a new fibre network link across the country. The deal, which enables work on rolling out the nascent network to begin, follows opening of a new BT network traffic routing facility in the country. [p.28.]
- Perle Systems was selected by BT Group to provide Ethernet terminal servers that will be deployed across BT exchanges to update network management capabilities. [p.39.]
BTwatch Report #225 September-October 2011 Snapshot
October 25, 2011
|
Table of Contents
1 Executive brief
4 BT Group
4 Acquisitions and disposals
4 Advent in talks to acquire BT’s Tech Mahindra stake
5 Digital Britain
5 Corporate social responsibility
5 Five competitors to BT in BDUK race
5 First impressions suggest BT rivals limited
6 Corporate social responsibility
6 BT emphasising carbon reduction in supply chain
6 Innovation
6 BT seen slowly acclimatising to open source
7 BT green credentials recognised by The Climate Group
7 Intellectual property
7 Comcast sues BT over patents dispute
8 People
8 People movement highlights
9 Network
9 BT downplays value of copper
11 BT Retail
11 Advertising
11 ASA clamps down on claimed “up to” broadband speeds
12 Network
12 Impact and reaction — BT may not bear the brunt of changes
12 Modest “unlimited” clarification also included
13 Privacy
13 Customer service
13 BT remains in middle of complaints league table
14 BT Ireland
14 Warren Buckley: multichannel customer service
14 Customers’ use of customer services
14 Move to multichannel service
15 Strategy and priorities in customer service
15 Improvements to one-call resolution emphasised, scale of problem indicated
15 Digital content
15 Newzbin2 moves to circumvent BT block
16 BT Expedite
16 BT Expedite showcases iPad PoS system
16 BT and TalkTalk given right to appeal DEA ruling
17 Television services
17 YouView names new CTO
17 Television services
17 BT selects LBi to showcase Vision benefits
17 Branding facelift
19 Plusnet
19 Wireless networks
19 BT plans to expand London Wi-Fi network
19 BT network at risk of over-promising
20 Plusnet survey: price is still king…
20 …ISP living up to its ‘no-frills’ objectives
20 London Underground and buses to gain wireless coverage
20 Councils tender for public Wi-Fi with BT in driving seat
21 BT Business
21 BT Business launches KickStart Scheme
21 Financing supports BT Business recovery
22 BT Business Direct ties with snom UK
23 OnLive
23 OnLive launches in the UK
24 Innovative service needs new approach from BT
25 Contracts
25 BT Global Services
25 Smart meter tendering underway
25 Contracts
25 BT wins BASF contract
25 BT demonstrating it can still grow client business
27 Competitors
27 Virgin follows BT into cloud
27 Financial services
27 BT expands Unified Trading voice service
28 Tech Mahindra/Mahindra Satyam
28 BT International: Africa
28 BT agrees capacity deal with FibreCo
29 BT International: Europe
29 BT appoints Lagercrantz as Head of BT Nordic
29 Suppliers
29 BT deploys iWay messaging solution
30 BT Wholesale
30 Network
30 BT and Everything Everywhere begin LTE pilot
31 Openreach
31 BE delays fibre plans due to lack of partners
31 Openreach launches 110Mbps FTTP service early…
32 Speculation that dark fibre regulation is on the cards
32 …trumpets imminent higher speeds and 1Gbps trials
32 Openreach responds to future-proofing worries
34 “…out of context…”
34 BT on ‘white spaces’ potential for UK coverage
34 Openreach reveals revised PIA pricing
35 Summary of Openreach PIA pricing
35 Regulatory reaction — BT ready to resist further changes
36 Rival reaction — Virgin quick to criticise
36 Stakeholders slam Ofcom over BT stalling tactics, BDUK funding
37 Government increases focus on BT PIA prices
37 Sub-loop unbundling cancelled due to lack of interest
38 BT rival begins fibre trials
39 Suppliers
39 BT selects Perle for LDU access and management
40 Index
BTwatch Report #223 July-August 2011 Executive Brief
August 31, 2011
|
- BT Group announced financial results for the first quarter of FY11-12, showing a slow start to achieving its goals for the year of halting underlying revenue decline, and bettering last year’s cash generation. Improving profit proved a bright point as the apparently endless capacity for cost cutting continued to contribute. [pp.4-10.]
- BT Global Services appears to be taking on more of the load in meeting Group targets, and the division has notably altered its strategy to encourage a rapid revenue return for new business. BT was adamant that lessons have been learned from previous experiences of more expansive strategy, and that profitable growth is paramount. [pp.29-31.]
- BT Group announced a new chief executive for its BT Wholesale business, with Nigel Stagg to replace Sally Davis from September 2011 as the former head leaves BT for personal reasons. Davis bows out on something of a low, as the division admits to struggles in meeting profitability expectations for managed services contracts, and its transformation stalls. Stagg is an interesting choice as replacement — having risen through the ranks of BT Retail units to lead BT Business — and it may be a challenge to adjust to the substantially larger-scale contracts and longer-term projects he’ll be faced with at Wholesale. [pp.43-46.]
- BT Retail continues to trumpet its broadband successes, although improvements to the bottom line are slower to come through. Retail’s Infinity fibre product is beginning to gather momentum, accounting for half of net adds in the past quarter and reportedly lifting overall profitability. Considered against its main triple-play rivals in voice and pay TV services, Retail’s performance makes a less positive story. However, the prospect of using technology behind YouView, and anticipated regulatory restrictions on BSkyB, to take a tilt at the substantial ARPUs of the main pay-TV players is enticing. [pp.15-19, 24.]
- Openreach indicated that fibre-to-the-premises could become more prevalent in the mix of its fibre rollout plans. Experience of next-generation rollout projects in Cornwall has suggested that a blend of FTTP and FTTC on a street-by-street level within an exchange can be effectively and efficiently managed. [p.53.]
- BT Group announced it is shutting down developer platforms and toolkits for its Ribbit internet voice subsidiary. However, development of the platform is to continue in-house, with support maintained for commercialised offerings. While the telco’s closing of a promising start-up, without apparent benefit from its innovation, may appear gloomily familiar, a recent re-focus on commercialising the capabilities BT can nurture in-house may mean that taking the Ribbit platform closer to its customer-facing businesses could be the making of it. [p.11.]
- BT Infinity was singled out in recent Ofcom broadband speed tests for its upstream capabilities. BT and Virgin Media efforts to roll out next-generation access have, according to the regulator, resulted in more than half of the UK population now living in areas capable of receiving higher speed services. Most of the coverage will be on the cableco’s network, but BT is playing its part through public-private partnerships, such as the initiative in Northern Ireland, which has resulted in widespread fibre coverage for the region. However, another regulatory study suggested that Northern Ireland is also an area where customers currently experience some of the lowest access speeds in the country, suggesting there is still something of a disconnect between availability and experience. [pp.19-21, 27-28.]
- The English High Court ruled that BT must take steps to block a website providing access to pirated digital content, following legal action brought by the Motion Picture Association using intellectual property laws. While BT technically lost the case, the telco demonstrated the need to obtain court orders for individual websites, highlighting the impracticality of current laws for addressing illegal content distribution. Newzbin2, the website affected by the ruling, threatened to disrupt BT’s already controversial internet access filters, to prevent the telco from complying with the order. [pp.21-23.]
- BT Retail is close to offering customers a cloud gaming service, as US-based OnLive prepares the launch of its hosted and streamed gaming service in the UK market towards the end of September 2011. BT is a shareholder in OnLive and launch partner for the offering. [p.26.]
- BT Global Services won a £133m contract with the Brazilian Post Office, providing tangible evidence of success in building international business. While BT has focused publicly on plans for building Asia-Pacific revenue, past acquisitions and investment in the comparatively healthy growth economies of Latin America may be proving more effective. [p.32.]
- BT won an £8m contract with Sunderland City Council, but continues to see its work on the NHS Programme for IT taken to task by the UK Parliament‘s Public Accounts Committee. BT still expects to be able to commoditise the services it has developed through its work on NHS contracts. [pp.33-35.]
- BT Radianz managed security solutions were launched in the Canadian market, as BT continues to exploit its strong position in the financial services sector to demonstrate its capabilities in providing emerging new services to demanding customers. The financial services unit also signed a partnership with TeleWare, to use the vendor’s solutions to offer Financial Services Authority-compliant call recording products. New managed authentication and anti-fraud solutions were also added to BT Global Services’ portfolio. Soft-ex announced it has expanded its partnership with BT, for the provision of hosted IP telephony offerings. [pp.37-39, 41.]
- BT is reportedly putting out to tender a number of contracts it currently has with Tech Mahindra, a business process outsourcing company in which it holds a stake. BT is also the Indian company’s largest customer. [p.42.]
- BT Wholesale is to extend its rollout of ADSL2+ services to cover 90% of UK premises by the spring of 2013. The goal marks an increase from previously outlined intentions to build an ADSL2+ network covering 80% of the country. There are, however, some indications that the timescale of the project may have lengthened. The move comes as the regulator Ofcom begins to implement stricter regulation on legacy copper broadband products in rural areas, with the objective of encouraging BT to focus on ADSL2+ as an alternative. [pp.48-50.]
- While Openreach said it is working with partners on the early stages of duct- and pole-sharing trials, Ofcom indicated it currently has no intention of requiring cableco Virgin Media to open physical access to its networks. The regulator claims there is no evidence to suggest that commercial negotiations to reach such an agreement would fail. While it could be an own goal for BT Retail to enter talks with its rival, BTwatch wonders if a cheeky request from its PlusNet subsidiary might cause a stir. [pp.50-51.]
- BT acknowledged that it is unlikely to secure all of the major tranches of state funding to be provided for the roll out of fibre services in rural areas, but warned of the perils of authorities selecting less experienced network providers. [pp.52-53.]
BT completes Northern Ireland Next Generation Network project first phase
August 31, 2011
|
Arlene Foster, Enterprise Minister for the Northern Ireland Assembly, announced that BT Group has completed the initial construction phase of the Next Generation Broadband Project to roll out faster broadband across Northern Ireland (NI) to time and budget.
Under a deal signed in 2009 (BTwatch, 2009.10), the project was jointly funded by BT (£29.8m) and the European Regional Development Fund through the UK’s Department of Enterprise, Trade and Investment (DETI) (£16.5m), with a further £1.5m invested from the Department of Agriculture and Rural Development (DARD) under the European Union’s (EU) ERADF Rural Development Programme. The additional DARD and EU investment subsequently sparked an additional outlay from DARD, DETI, and BT totalling £4m.
Under the scheme, BT has upgraded equipment in 166 exchanges, provided 1, 265 new access points across Northern Ireland, and deployed fibre-optic cable deeper into Northern Ireland’s cities, towns, villages, and rural areas. Next-generation access is said to be available to 85% of businesses, offering minimum download speeds of 10Mbps for operations in urban areas, and 2Mbps in rural areas.
Graham Sutherland, Chief Executive of BT Ireland, said that at least 89% of all phone lines will be connected to a fibre-enabled street cabinet by March 2012.
Network there, but where’s demand?
While BT trumpeted the availability of its high-speed network in Northern Ireland, its announcement is worth considering in the context of Ofcom’s recent map of broadband availability across the UK.
This indicated that Northern Ireland had the highest levels of super-fast broadband coverage in the UK, apparently available for more than 90% of the population across almost the entire region. However, it also showed that the area had among the highest proportion of customers receiving broadband speeds of less than 2Mbps. More than 20% of the user base outside the city of Belfast is using broadband services at levels around those available at the turn of the century, suggesting that rollout from BT has not been matched by a shift in customers.
While it is still relatively early days for the Northern Ireland rollout project, and more time should be given before its success can be determined, it is hoped that improving trends will be soon seen to justify the investment from BT and the public sector. It is probably not a coincidence that swatches of Northern Ireland record some of the lowest levels of broadband uptake in the UK; and there is now an opportunity to build a customer base that proves there is pent-up demand for high-speed broadband services.
[Further reference: Foster announces completion of Next Generation Broadband Project -- Northern Ireland Executive, 27 July 2011; £52m scheme rolls out even faster broadband -- Belfast Telegraph, 29 July 2011.]
Read more
BTwatch Report #223 July-August 2011 Snapshot
August 31, 2011
|
Table of Contents
1 Executive brief
4 BT Group
4 BT Q1 FY11-12 results
4 BT profits continue to rise, but revenue still declining
4 BT Group financial highlights, Q1 FY11-12
5 BT pension deficit hit by market woes
5 Retail and Wholesale revenue prompt worries
5 Openreach and Global Services offer some comfort
5 BT Group, performance by unit, Q1 FY11-12
6 Financial reports
6 Broadband a highlight, but new wave growth still meagre
6 BT Group, revenue by product type, Q1 FY11-12
7 Digital Britain
7 Vaizey looks for DEA solution
7 BT’s capacity for cost cutting apparently undiminished
7 Capital expenditure rising, and set to rise more
7 BT Group, capital expenditure, Q1 FY11-12
8 Advertising
8 Fixed line numbers keep rising, but not for Retail
8 BT Group, KPIs, Q1 FY11-12
8 Retail grows broadband share, Orange flatters Wholesale
9 Pension
9 BT pensioners criticise switch to CPI
9 BT Group, broadband KPIs, Q1 FY11-12
9 BT stands by outlook, but divisional expectations change
10 Government loses Crown Guarantee appeal
10 Cash flow mountain to climb for the year
10 People
10 People movement highlights
11 Suppliers
11 Ribbit
11 BT kills off Ribbit developer platform
11 Same old BT, or an opportunity to evolve?
12 Strategy
12 Williams outlines strategy for growth
12 Divisions taking individual responsibility for growth
12 Building customer accounts and international expansion stressed
13 Acknowledgement BT strategy needs to be about more than cost cutting
15 BT Retail
15 Q1 FY10-11: BT Retail
15 Broadband flatters, but decline barely slowing
15 BT Retail, financial highlights, Q1 FY11-12
15 New business areas faring little better than traditional business
15 BT Retail, revenue by product type, Q1 FY11-12
16 Advertising
16 Fibre shows first signs of significant traction
16 BT and BSkyB leading the way in broadband
16 Broadband customer numbers (’000), Q1 FY11-12
17 Operations
17 BT to add 280 jobs at Harton Staithes…
17 …Centre’s purpose shifts towards commercial services
17 Calls and lines, customer numbers (’000), Q1 FY11-12
18 Privacy
18 Could YouView enable genuine BT assault on Sky?
18 Pay TV customer numbers (’000), Q1 FY11-12
19 Wireless networks
19 Monthly ARPU, Q1 FY11-12, UK fixed line market
19 Broadband
19 Ofcom sees broadband speeds rise, but behind claims
19 Average UK broadband download throughput speeds
20 Regulator claims more than half of country has NGA access
21 BT Payphones
21 Ofcom maintains pressure on ISPs for clear advertising
21 Digital content
21 BT MPA piracy case loss could be good news for ISPs
22 BT Enterprises
22 Blocking looks impractical for all but most serious offenders
22 BT could be hit by service disruption
22 BT campaign of resistance may be bearing fruit with government re think
23 BT Expedite
23 Survey identifies rising interest in mobile commerce
23 Wider response spotlights need for entente between ISPs and rights holders
24 Television services
24 CC to rule on BSkyB pay TV dominance
24 Further cuts could bolster YouView launch
26 OnLive
26 OnLive sets date for UK launch
27 BT Ireland
27 BT Fresca
27 Fresca signs fashion brands
27 BT completes NI NGN project first phase
28 BT Northern Ireland wins civil service contract
28 Network there, but where’s demand?
29 BT Global Services
29 Acquisitions and disposals
29 BT sells Accel Frontline stake…
29 …Commitment to Asia Pacific emphasised
29 Q1 FY11-12: BT Global Services
29 Orders up as BT chases new business at Global Services
29 BT Global Services, financial highlights, Q1 FY11-12
30 BTGS focused on share of market, not customer wallet
31 BT insists new revenue will be profitable
31 The UK market a target despite headwinds
31 BT Global Services, revenue by product type, Q1 FY11-12
32 BT International: Asia
32 BT opens New Delhi Showcase centre…
32 Contracts
32 BT wins Brazilian Post Office contract
32 Tangible evidence of GS promised growth — but from lower profile target
33 …BT commits to India, Tech Mahindra investment
33 Public sector contracts
33 BT wins £8m Sunderland City Council contract
33 MPs renew calls to cancel BT’s NPfIT contracts
34 BT International: Europe
34 BT wins new Netherlands state contract
34 DoH accused of “clearly” overpaying BT
34 NHS reforms also threaten project
35 BT International: Middle East
35 BT continues to emerge in better light than rival
37 Financial services
37 Russian Uralsib joins BT Radianz
37 BT launches collaboration services suite in Canada
37 Financial services spotlighted as cloud pioneers
38 BT partners TeleWare for mobile recording service
39 Products and services
39 BT launches authentication service, builds security suite
40 Tech Mahindra/Mahindra Satyam
40 Strategy
40 BT exploiting re-useable solutions from NHS deals
40 Vertical targeting trumpeted, focused account management highlighted
41 Tech Mahindra/Mahindra Satyam
41 Future direction could see new verticals added
41 Suppliers
41 BT selects Soft-ex for Hosted IP Telephony
41 Deals see established relationship continue to expand
42 Tech Mahindra
42 Tech Mahindra reports improved profit, less BT business
42 BT tendering more widely for projects
43 Legal
43 BT Wholesale
43 BT wins CAT appeal on non-geographic MTRs
43 Q1 FY11-12: BT Wholesale
43 Wholesale shows worrying signs of contract troubles
44 BT Wholesale, financial highlights, Q1 FY11-12
44 Overall revenue at least stabilising, broadband another worry
44 BT Wholesale, revenue by product type, Q1 FY11-12
45 Executives
45 Stagg to replace Davis as Wholesale problems emerge
46 Signs of weakness again see board changes at BT
48 Network
48 BT extends ADSL2+ rollout, slows pace?
48 Extension hides possible deadline slip
49 Regulatory
49 Ofcom orders rural broadband price reductions
50 BT sanguine, smaller players criticise regulator
50 Ofcom denies BT access to Virgin Media cable ducts
51 Would BT talk to Virgin on wholesale access? Could Plusnet cause trouble?
52 Openreach
52 Q1 FY10-11: Openreach
52 Openreach positioned as BT’s good news story
52 Openreach, financial highlights, Q1 FY11-12
52 Openreach, revenue by product type, Q1 FY11-12
53 BT cautious on state fibre contract wins
53 FTTP could become a greater part of fibre mix
54 Network
54 Openreach adds 92 new apprentices in London
54 Work to begin on physical infrastructure sharing
54 BT broadband rollout criticised as “patchy”
55 Index
Read more
BTwatch Report #222 June-July 2011 Executive Brief
July 28, 2011
|
- A review of the BT Group Annual Report showed that BT did not reach its goals for improving customer service in the past financial year, despite continued progress in the area. There was also a marked change of policy in payment to suppliers, perhaps contributing towards improved cash flow performance. Senior executives have now also been set targets based on long-term revenue growth, although the Group remains wary of a return to unprofitable expansion. [pp.11-13.]
- BT Global Services signed a renewed contract with Liverpool City Council to continue their Liverpool Direct joint venture, which manages a range of outsourced business processes for the council. The contract renewal until 2017 came at a price for BT, with the value of the deal reduced, commitment to additional investment, writing-off previous spending, and a doubling of the council’s stake in the venture. [p.21.]
- BT is participating in trials delivering next-generation broadband services using spectrum “white spaces” created by the shift to digital television broadcast. Testing of the capabilities and potential drawbacks of the spectrum are being undertaken with a number of heavyweight partners in Scottish islands and Cambridge in England. [p.37.]
- BT Wholesale highlighted several new developments and plans for the growing digital content delivery sector. The division is promising an “end-to-end linear TV delivery service” for 2012, through multicast-based TV Connect. The new offering is expected to accommodate a wide range of digital rights management standards, and provide opportunity for content to be broadcast via the BT network independently of other traffic, until it reaches the ‘last mile’ to the end user’s home. Future developments for the upcoming YouView platform are at the core of BT’s expectations for the service. BT Vision is also expected to make use of the service, to deliver premium subscription content, such as Sky Sports, at more economically viable costs. BT Wholesale is additionally hoping to see success for digital “locker-based” content management solutions that could break dominance of big players in the nascent digital video market, thus creating an essential role for network providers in a fragmented ecosystem. [pp.28-32.]
- BT Group failed in its attempt, alongside TalkTalk, to secure leave to appeal the decision of the UK courts to uphold the validity of the Digital Economy Act, which will require BT Retail to take an active role in policing online content piracy. The BT Retail unit is also in court contesting demands from the Motion Picture Association that it block access to websites making illegal downloads available, expressing concern that a requirement to block one site could open the floodgates to further demands. [pp.4-5, 14.]
- BT Group lodged objections to the regulator Ofcom’s plans to cut mobile termination rates, claiming the proposed reductions do not go far enough, quickly enough. The wireline incumbent is also concerned by proposals for auctions of 4G spectrum in the UK, suggesting that, as they stand, the plans could see it face unfair competition in the development of next-generation access networks. [pp.7, 8.]
- Despite continued cutbacks in spending on R&D projects, BT extolled the virtues of investment in innovation, and collaborating on open standards, to bring services to market — an approach that, if backed with action, could see BT increase its return on development investment. [p.9.]
- BT Retail was accused of monitoring customers’ broadband network connections in a manner that could be exploited commercially. While BT rightly dismissed the claims as overblown, they nevertheless highlighted that BT is still susceptible to media alarmism on privacy matters, after its brush with controversy over trials of the Phorm targeted web advertising solution. [p.15.]
- BT Retail confirmed that the BBC iPlayer had now been rolled out across the customer base for its BT Vision television offering. [p.16.]
- BT Openzone is said to still be considering its options for the provision of wireless network coverage during the 2012 Olympic Games in London. The BT unit is anticipating unprecedented levels of demand during major events, and pondering the possibility of offering tiered levels of access. BT Openzone also signed an agreement to roll out wireless network hotspots across the Hilton hotel group, in the UK and Ireland. [pp.16, 17.]
- BT Engage IT is continuing to trumpet plans for growing its share of the market for networked IT services in the enterprise sector, with the goal of taking a 5% share of a £20bn market, ten-times its foothold at the £100m revenue mark. The BT Retail unit is said to be working with the lower echelons of BT Global Services’ corporate customer base, as well as the very top-end of BT Business’s SME customers, prompting BTwatch to ponder whether the unit might shift home to Global Services business, along with the mid-size enterprise customer base. [pp.19-20.]
- BTGS’ financial services unit added offerings from Aphelion and LockPath to its BT Radianz platform. [pp.22, 23.]
- BT Global Services signed a Global Innovation Partnership agreement with Deutsche Post DHL, an international logistics and mail group, to work on new projects around sustainable logistics, RFID, and supply chain security. There will be a focus on projects for Asia-Pacific markets, where the two companies have an existing contract. [p.23.]
- BT in the USA added Microsoft Lync to the BT Onevoice converged communications platform, following earlier introduction in Europe. BT Germany expanded the coverage of its BT Etherflow service in the country, amidst plans to extend availability elsewhere in Europe and the USA. [p.24.]
- Kingston Communications was awarded a contract extension to provide outsourced contact centre services, supporting a BT contract with a government agency. BT Supply Chain Partners is to upgrade its transport management system with new mobile communications solutions from Skillweb. [p.26.]
- BT Wholesale faced public criticism from customers complaining of poor service delivery on 21CN infrastructure, and failure to recognise problems when they arise. [pp.33.]
- BT Wholesale predicted increasing demand for Ethernet services from mobile operators as the strain on backhaul networks continues to mount. The division’s Head of Data Solutions also highlighted BT’s expertise and experience in network management, but bemoaned complexity of both vendor offerings around Carrier Ethernet, and impractical customer demands. Backhaul capacity is also viewed by BT as a potential brake on cloud services evolving on mobile platforms. [pp.34, 35.]
- Openreach’s roll out of commercial fibre-to-the-premises is to be slightly delayed, as problems with blocked ducts in the network are overcome; but initial pricing has been unveiled. The division also overhauled prices for fibre-to-the-cabinet offerings, although changes are unlikely to allay industry complaints about fibre costs. [pp.38, 39.]
- The Office of the Telecommunications Adjudicator indicated that growth of LLU has levelled off, although there is still a shift towards fully-unbundled lines. Openreach is said to be getting closer to a return to an even keel on delivery of provisioning and repair services to communications providers. The OTA is also managing two working groups on the development of physical infrastructure access, a central element of alternative operators’ plans for competing with BT on fibre broadband. [p.40.]
BT to launch multicast TV broadcast platform
July 28, 2011
|
BT to launch multicast TV broadcast platform
In an interview with IPTV News, Simon Orme, Strategy Director of Content Services at BT Wholesale, explained that his company is set to launch a service called TV Connect in the coming year, which will effectively be a new platform for broadcasting video content, including live television.
The BT executive said the telco is currently working with UK internet service providers (ISPs) ahead of a launch. Technical testing is already underway and small-scale trials are expected to involve customers later in 2011, prior to a commercial launch in 2012.
Orme suggested that the new TV Connect offering is similar to, but not the same, as the BT content delivery network offering Content Connect, which was launched earlier in 2011 (BTwatch, #219). He described the upcoming service as the evolution of BT strategy on content delivery.
“ There are massive benefits to [the television industry, and the ISP and operator community] in engineering a multicast solution; it has really been a question of when is the right time to introduce that, and we have felt that the way into this market is to build our on-demand platform — our Content Connect platform — get that into the market first and start the process of building the commercial models around that, and customer engagement models around that; and then bring in the bigger development some time later, which is the TV Connect element. ”
– Orme.
TV Connect will see BT enable broadcasters and operators to deliver media feeds via a television headend directly into the BT network. While using the same physical infrastructure as BT’s broadband network, this streaming will be managed entirely separately from existing broadband traffic until it is merged with the rest of the broadband traffic carried on the network on the ‘last mile’ link to the end user. The service will reportedly offer live real-time encoding of all broadcast television content, including content protection, conditional access, and digital rights management (DRM) functions, and allow the creation of broadcaster-specific electronic programme guides (EPG).
“ We could have built a multicast-enabled network, and then just sat back and seen what happens, but we don’t believe that is going to answer the problem. What we have actually built with TV Connect is an end-to-end linear TV delivery service. ”
“ We are not actually delivering TV Connect through the broadband route: we are delivering it from the headend directly into the exchanges; and that has effectively enabled us to build a television network, as opposed to having to find a way to push multicast television through the broadband network. ”
– Orme.
Service providers will be responsible for arranging their own carriage deals with content providers, and then BT will enable the delivery of the service to end users. One of the reasons provided by Orme for the telco waiting up to a year more before launching the service, is to provide time for the industry to agree standards for the delivery of television content around areas such as DRM, hardware, picture resolution, and set-top boxes, among other things. Orme appeared optimistic that TV Connect will be able to support a range of DRM solutions should the industry agree a standard encryption base.
“ That [DRM diversity] is perfectly viable in this wholesale model — that is exactly the way our wholesale model is designed, so that the retailer entity, whoever they are, manages their own key, their own EPG look and feel, user experience; we are just providing the enabling delivery technology underneath. ”
– Orme.
Orme noted there could be considerable economic benefits for content and service providers in using the TV Connect service compared to existing methods of digital television broadcast. The service is seen as offering ISPs revenue-generating opportunities from pay-TV (such as BT Retail and its BT Vision service) with lower costs than traditional broadcast. It is also expected to make niche broadcasting more viable, as it does not have the same level of annual costs, which are fixed regardless of the size of the actual customer base.
“ We know, for example, that in our broadcast services business, we launched the Eurobird [satellite] service to allow smaller channels to get onto the Sky platform at much lower costs — I can’t remember what the economics were, but it practically halved the economics overnight — and it just spawned literally hundreds and hundreds of channels coming into the market that otherwise couldn’t have survived: TV Connect is much more disruptive or radical than that, and we are anticipating a new wave of innovation in the television on the back of it. ”
– Orme.
Media experience key to new offering
Orme was keen to stress the capabilities and experience BT Wholesale has in providing television network services through its Media & Broadcast business, which has been managing television delivery on a global basis for many years.
“ Because we have been building broadcast television networks for years, we have a whole load of technical ‘smarts’ that enables us to do proactive network monitoring: we have robots in the network, and all of this kind of smart stuff that we have had for years in our global broadcast network that we have been providing the global broadcast network industry with for many years; and we are able to deploy those kinds of techniques into the TV Connect network because it is a dedicated television network, and it is not fighting with other traffic. ”
– Orme.
BT acted with YouView in mind
While the YouView internet television platform may launch before the availability of TV Connect from BT, the potential for the service to use the new platform was an important element of BT’s rationale for developing TV Connect, according to Orme.
“ I think YouView will be a major catalyst for TV Connect: the YouView partners are planning to support multicast within the YouView specification, so, at some point in the service’s evolution, the set-top boxes will be multicast-ready; and clearly because there will be a huge marketing drive behind the deployment of those boxes, and we anticipate large-scale take-up, that is going to be one of the catalysts we think of multicast adoption. And also because YouView is a joint venture between the ISP industry and the broadcast industry — all of those things make it a perfect fit for the TV Connect model; and of course part of the TV Connect thinking was in anticipation of YouView coming to market. ”
– Orme.
BT Retail likely to be key customer
While Orme would not discuss BT Retail plans for using TV Connect, elsewhere executives at the Retail division indicated there are plans to introduce multicast routers across most of its network from 2012, paving the way for full Internet Protocol television (IPTV) services, using quality of service protocols.
The company previously said that, given its BT Vision devices include a DVB-T tuner to receive Freeview digital television services, there was little point in building out its network with multicast routers, and would instead rely on the strength of Freeview plus its own video-on-demand services.
However, speaking at the Connected TV Summit, Steve White, Head of Information Systems and Technology for IPTV at BT Retail, said that cost and the addition of non-DVB-T channels to its offering were the primary drivers for the change of heart.
“ It’s too expensive renting DVB-T multiplex space to deliver Sky Sports to BT Vision customers, so we want to send it multicast. ” – White.
White explained that when BT gained the right to re-broadcast a number of BSkyB channels, it took the decision that sending signals over the internet without full quality-of-service protection as an adaptive stream was not good enough, and it was forced to rent a channel on one of the UK DVB-T multiplexes that drive Freeview.
[Further reference: BT plans to be a super head end to all UK ISPs for multicast TV -- Rethink research, 23 June 2011; BT to embrace IPTV as it upgrades broadband network to multicast -- The Register, 30 May 2011; BT: “TV Connect is actually the engineering of a dedicated television network for online TV” -- IPTV News, 22 June 2011.]
Read more
