BTwatch Report #230 January-February 2012 Snapshot
20 February 2012
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Table of Contents
1 Executive brief
4 BT Group
4 Q3 FY11-12 results
4 BT progress looks fragile, but fibre adds zest
4 Underlying revenue still bumping along bottom of guidance
4 Profit underpinned by cost cutting, and flattered by external factors
5 BT Group financial highlights, Q3 and 9m FY11-12
6 Financial reports
6 Broadband a very rare revenue growth outrider
6 BT Group, revenue by product type, Q3 and 9m FY11-12
7 Corporate social responsibility
7 Divisional performance underlines “more to do” mantra
7 BT Group, performance by unit, Q3 FY11-12
8 Heritage
8 Rate of cost cutting slowing at BT
8 BT Group, operating costs, Q3 and 9m FY11-12
9 Capex well managed, annual spending remains in line
9 BT Group, capital expenditure, Q3 and 9m FY11-12
10 Digital Britain
10 People
10 People movement highlights
10 Digital Britain
10 BT gains as Fujitsu withdraws from BDUK in Wales
10 Wales development mirrors Highlands and Islands bidding
11 Digital Britain
11 FTTP appears commercially unviable for low-density regions
12 Digital Britain
12 Wales failure gives BDUK critics more ammunition
12 BT also picking up smaller contracts
14 Advertising
14 BT Retail
14 Q3 FY11-12 results
14 BT sees signs of better trends, but top-line still weak
14 BT Retail, financial highlights, Q3 and 9m FY11-12
14 BT looks for comfort in trends
15 Fibre
15 BT Retail, revenue by product type, Q3 and 9m FY11-12
15 Broadband base passes six million, fibre draws in customers
16 Fibre demand draws more competition to market
16 Broadband customer numbers (’000), Q3 FY11-12
16 Rivals continue to strip BT’s calls and lines business
16 Calls and lines, customer numbers (’000), Q3 FY11-12
16 BT Vision finally coming into its own
16 Pay-TV, customer numbers (’000), Q3 FY11-12
17 2012: the year smart and internet TV disrupt UK pay-TV?
18 Operations
18 Broadband
18 BT holds own as Ofcom finds broadband speeds up
18 Summary of average download speed by ISP package, November 2011
19 BT Payphones
19 Average speed changes impacted by BT and Virgin upgrades
19 ADSL2+ now has lion’s share of market
19 Advertising speed claims likely to be strongly curbed
20 Digital content
20 BT and TalkTalk appeal DEA Judicial Review
21 Wireless networks
21 BT launches BT FON app for BlackBerry
21 Openzone reaches three million hotspot milestone
23 BT Business
23 Television services
23 BT Retail accounts for 21% of Netflix traffic in first days
23 Netflix emphasises ISP relationships
24 Plusnet uses Netflix launch to promote fibre
24 BT Vision signs content deal with Miramax
24 BT Conferencing
24 BT ties with Verizon for extended telepresence
25 Plusnet
25 Plusnet to extend fibre trials
26 Operations
26 BT Global Services
26 Q3 FY11-12 results
26 Global Services stretching for good news
26 BT Global Services, financial highlights, Q3 FY11-12
27 Latin America providing a degree of comfort
27 BT Global Services, revenue by product type, Q3 and 9m FY11-12
28 Competitors
28 BT International: Asia-Pacific
28 BT appoints Haruno Yoshida to head BT Japan
29 BT International: Europe
29 Luca Zappia appointed to head BT’s Swiss operations
30 Partners
30 BT Global Services joins CloudSleuth partner community
32 Tech Mahindra/Mahindra Satyam
32 Tech Mahindra
32 Preparations for Tech Mahindra/Satyam merger continue
33 BT Wholesale
33 Digital Britain
33 Q3 FY11-12 results
33 BT Wholesale feels Ethernet growing pains
33 BT Wholesale, financial highlights, Q3 and 9m FY11-12
34 Wholesale pain to continue as Ethernet migration hits BT figures
34 BT Wholesale, revenue by product type, Q3 and 9m FY11-12
35 Contracts
35 BE Broadband plans to use BT fibre
35 Network
35 Ofcom extends LTE licence for BT and EE trials
36 BT tempers enthusiasm for LTE
37 Openreach
37 Network
37 Q3 FY11-12 results
37 Openreach enjoys BT starring role, as fibre passes 7m
37 Capex reined in, but operating expenses creeping up
37 Openreach, financial highlights, Q3 and 9m FY11-12
38 Network
38 Openreach, revenue by product type, Q3 and 9m FY11-12
38 New fibre products expected to develop the UK market…
38 …but signs suggest BT has abandoned FTTP
39 Vectoring to take FTTC to 100Mbps
39 Copper line growth attributed to growing population
39 BT quietly confident on BDUK progress
41 Fibre
41 Openreach trials on-demand FTTP
42 Demand for product unclear, but launch helps BT answer tricky questions
42 Openreach updates line checkers for faster FTTC
43 Openreach announces Fibre Voice Access pricing
43 FTTP developments continue apace
44 Openreach offers CPs data ahead of IP linear TV launch
45 Regulatory pricing
45 Ofcom outlines new charge controls
45 Ofcom’s proposed charge controls
46 Regulatory power shifting to Europe?
46 BT unhappy with scale of reductions
47 Suppliers
47 Openreach and ADVA launch new OSA service
48 Index
Index
A
Abbey, 25
ADVA Optical Networking, 47
Advertising Standards Authority, 21
Akamai, 23
Apple, 21
Atos, 28
B
Be Broadband, 18, 35
British Broadcasting Corporation (BBC), 46
Broadband Delivery UK (BDUK), 10, 11, 12, 39
Broadcast Committee of Advertising Practice, 19
BSkyB, 15, 16, 17, 18, 23, 33
- Sky Sports, 24, 33
BT Group
- Asia
- – Tech Mahindra, 32
- BT Global Services, 4, 6, 7, 9, 10, 26, 27, 28, 29, 30, 34
- – BT Asia Pacific, 28
- – BT EMEA, 29
- – BT International, 28, 29
- – BT Japan, 10, 28
- – One Source for Cisco TelePresence, 24
- – Voice Continuity, 43
- BT Pension Fund, 6
- BT Pension Scheme, 5
- BT Retail, 7, 9, 10, 14, 15, 16, 18, 19, 20, 21, 23, 24, 25, 33, 38, 41, 43, 44, 45
- – BT Broadband, 15
- – BT Business, 7, 14, 23, 24
- – BT Conferencing, 24
- – BT Engage IT, 14
- – BT Expedite, 18
- – BT FON, 21
- – BT Home Hub, 21
- – BT Infinity, 7, 15, 16, 18
- – BT Local Government, 26
- – BT Openzone, 21
- – BT Payphones, 10, 19
- – BT Redcare, 10
- – BT Vision, 14, 16, 17, 24, 44
- – - BT Vision 2.0, 44
- – MyDonate, 7
- – Plusnet, 16, 18, 23, 24, 25, 33
- BT Tower, 23
- BT Wholesale, 6, 7, 9, 10, 15, 27, 33, 34, 35, 36, 38, 43, 45
- – IP Exchange, 34
- – Mobile Ethernet Access, 34
- – Superfast Cornwall, 33
- Executives
- – Campenon, Olivier, 29
- – Galvin, Mike, 41, 42
- – Garfield, Olivia, 38, 41
- – Holt, Steve, 30
- – Livingston, Ian, 5, 7, 14, 26, 33, 34, 38, 39, 42
- – Murphy, Bill, 33
- – Patel, Chet, 10
- – Patterson, Gavin, 15
- – Stagg, Nigel, 36
- – Taylor, Kevin, 28
- – Yoshida, Haruno, 10, 28
- – Zappia, Luca, 10, 29
- Ex-executives
- – Davis, Sally, 36
- Openreach, 6, 7, 8, 9, 15, 16, 25, 35, 37, 38, 39, 41, 42, 43, 44, 45, 46, 47
- – Enhanced Managed Line Checker, 42
- – Fibre Voice Access, 43
C
Cable&Wireless Worldwide plc, 10
Cambridgeshire County Council, 12
Ciena, 47
Cisco Systems, Inc., 24
Commendium, 10
Committee of Advertising Practice, 19
Computer Sciences Corp, 28
Compuware, 30
- CloudSleuth, 30
Coventry University, 8
D
Department for Business, Innovation & Skills
- Vaizey, Ed, 12
Department for Culture, Media and Sport
- BDUK, 10, 11, 12, 39
- Hunt, Jeremy, 11
Department of Health, 28
Deutsche Telekom
- T-Mobile, 35
Digital Britain, 10, 11, 12, 33
Digital Economy Act (UK), 20
E
European Union, 20
- European Commission, 45, 46
- European Regional Development Fund, 10, 12
Everything Everywhere (Orange UK, T-Mobile UK), 35, 36
F
France Télécom, 24
- Orange, 18, 24, 35
- Orange Business Services, 24
Fujitsu, 10, 11, 12
G
Google, 21
- Android, 21
H
High Court, 20
Highlands and Islands Enterprise, 10
Hitachi Communication Technologies, 28
Huawei Technologies, 35
I
IT Holdings, 28
K
KDDI Group, 28
Kelly Communications, 16
Kingston Communications (KCOM)
- Karoo, 18
L
Lancashire County Council, 12
Level 3 Communications, 23
Limelight, 23
M
Mahindra Satyam, 32
Medway Council, 11
Metropolitan Borough of Sandwell
- Transform Sandwell, 18
Miramax, 24
N
National Health Service (NHS, UK), 28
Netflix, 23, 24
Nokia, 35
Nokia Siemens Networks, 35
Nomura, 6
North Tyneside Council, 26
NTT, 28
O
Ofcom, 18, 19, 35, 45, 46
- LLU, 45, 46
- Price controls, 45
- Wholesale Line Rental, 45, 46
Office of the Telecommunications Adjudicator (UK), 37
Olympic Games, 14, 38
- London 2012, 14, 38
P
PricewaterhouseCoopers, 32
R
Research In Motion
- BlackBerry, 21
S
Sandwell Council, 18
Scottish Hydro Electric Power Distribution, 38
Scottish Roadworks Commissioner, 38
Scottish Water, 38
Swisscom, 29
T
TalkTalk Telecom Group plc, 15, 16, 18, 20, 23, 44
Tech Mahindra, 32
- Mahindra Satyam, 32
Technology
- 2.5G, 47
- Broadband, 6, 7, 9, 10, 11, 12, 14, 15, 16, 18, 19, 21, 23, 24, 25, 26, 27, 33, 34, 35, 36, 38, 39, 41, 42, 43, 46
- – ADSL, 18, 19
- – ADSL2+, 9, 18, 19
- – DSL, 18, 44
- – VDSL2, 37
- Ethernet, 9, 33, 34, 41, 42, 44
- Fibre, 4, 7, 9, 10, 11, 12, 15, 16, 18, 19, 24, 25, 33, 35, 36, 37, 38, 39, 41, 42, 43, 44
- – Fibre-to-the-cabinet (FTTC), 11, 12, 15, 16, 25, 35, 37, 38, 39, 41, 42, 43, 44
- – Fibre-to-the-premises (FTTP), 11, 25, 38, 39, 41, 42, 43
- – FTTH, 25
- HD, 23, 24
- IP, 34, 44
- IPTV, 44
- ISDN, 16
- Linear IPTV, 44
- LLU, 16, 35
- LTE, 33, 35, 36
- Next-generation access (NGA), 42
- Private circuits, 42
- Telepresence, 24
- Vectoring, 39, 42
- VoD, 6
- Wi-Fi, 21
Telefónica, 18, 35
- Telefónica Europe, 18, 23, 25, 35
- – BE, 35
- – UK, 25
The Cloud, 30
The National Archives, 8
Transport for London, 38
U
UBS, 6
Upaid Systems Ltd., 32
Uswitch, 25
V
Verizon Communications, 24, 28
- Verizon Business, 28
- Verizon Enterprise Solutions, 24
Virgin Media, 16, 18, 19, 23, 33, 38
Vodafone, 33
W
Walt Disney Company, The
- ESPN, 24
Westminster City Council, 19
X
X-Factor, 23
Y
YouView, 6, 17, 44
About BTwatch
Report: #230
Covering: January-February 2012
Published: February 2012
Next report: March 2012
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