BTwatch Report #218 November/December 2010 Snapshot

6 January 2011

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Snapshot of BTwatch, report #218. Click through for: the Executive Brief from this month’s report; an Extract from the report; or to contact us for more information about the full 56-page report, this industry standard monthly report service, and ongoing subscription access.


Table of Contents

1 Executive brief

4 H1 FY10-11 results

4 BT continues recovery, fuelled by cost cutting
4 Cost‑cutting outpaces revenue decline
Table 1: BT Group financial highlights, Q2 and H1 FY10-11 5
5 Livingston right to remain cautious
Table 2: BT Group, performance by division, Q2 FY10-11 6
Table 3: BT Group, performance by division, H1 FY10-11 7
Table 4: BT Group, revenue by segment, Q2 and H1 FY10-11 7
7 Dividend up, but scope for further improvement
8 External factors begin to reverse BT pension woes
8 Outlook upgraded as BT caution pays off
9 Divisions
9 BT Global Services
Table 5: BT Global Services, financial highlights, Q2 and H1 FY10-11 9
10 BT Retail
Table 6: BT Retail, financial highlights, Q2 and H1 FY10-11 10
11 BT Ireland
12 BT’s explosion onto premium TV content stage a damp squib
13 BT Wholesale
Table 7: BT Wholesale, financial highlights, Q2 and H1 FY10-11 13
15 Openreach
Table 8: Openreach, financial highlights, Q2 and H1 FY10-11 15
15 Fibre rollout moving quickly, but spending under control
16 Awards and accreditations
16 BT wins four categories at World Communication Awards
16 Analyst reaction
17 Appointments
17 Brokers’ reports

17 BT Group

17 Acquisitions and disposals
17 BT to sell 5.5% stake in Tech Mahindra
18 BT Fleet
18 Operations
18 BT selects Cardiff for new software centre
19 Legal
19 BT wins judicial review of Digital Economy Act
20 Employment
20 Network
20 BT calls for licence fee funds
20 BT unlikely to upgrade FTTC to FTTP
21 Wales to follow NI lead, despite missed funding?
21 Pension
21 Ofcom confirms pension decision on BT pricing
22 Regulatory
22 Ofcom supporting BT view in COLT dispute
22 Mixed reaction to pension changes
22 People
22 Rangaswami leaves BT
23 Research
23 Social responsibility
23 Regulatory
23 BT appeals Ethernet charges case to CAT
23 Openreach proposes LLU caps ahead of ruling
24 Awards and accreditations
24 Fibre
24 Research and development
24 BT continues high R&D spending
26 Television services
26 BT Vision gets The Wiggles
26 BT Retail
26 Strategy
26 Sam Calvert: re‑inventing BT.com
27 OnLive
27 BT Television Services
27 BT brings 3D films to Vision service
28 Training
28 BT trumpets apprenticeship qualifications
28 BT offers BBC iPlayer on Vision
28 Pushbutton develops iPlayer for BT Vision
29 Wireless networks
29 BT defends hotspot performance
29 Virgin to compete with BT Openzone
29 Plans to bundle YouView in pipeline?
29 Is YouView the latest flavour of BT’s ‘jam tomorrow’?
30 YouView parts company with CTO
30 Fixed line
30 Line rental rises again due to VAT
31 Wireless networks
31 BT passes two million wireless hotspots
31 Hiscox signs up for JiWire ad platform
32 Fon highlights router sales
32 BT Business
32 BT Business Mobile slammed
33 BT Conferencing
33 BT and AT&T launch inter‑provider telepresence
33 BT ties with Kontiki for CEO Connect
34 BT launches cloud conferencing in Italy
34 BT launches MeetMe audio conferencing applications
36 BT Engage IT
36 BT Engage IT to offer “pay‑as‑you‑go” Symantec services
36 BT Expedite
36 BT Fresca highlights Lyle & Scott contract
37 Awards and accreditations
37 BT trumpets Avaya partner status
37 BT Ireland
37 “Cloud” services launched in Ireland
37 BT trumpets NI NGN rollout achievements

38 BT Global Services

38 Strategy
38 BT Global Services overhauls management
38 Nicholson to continue leading successful financial services template
38 Rogers rewarded for procurement achievements
39 McCann joins to lead consumer goods drive
39 Burger moves from country management to head commerce group
39 Geographic leadership roles clarified
40 Global Services emerging from crisis mode
40 Contracts
40 BT wins back Lloyds Bank contract
41 Vicom wins Caixa Economica Federal contract
42 BT wins DigitPA contract
42 BT builds international government portfolio
43 NHS contracts
43 BT taking lion’s share of NPfIT spending
43 Public sector partnerships
43 Contact centre jobs announced for Sandwell
44 BT International: Asia‑Pacific
44 BT International: Asia
44 BT opens Customer Innovation Centre in China
44 Narang: Revenue is driver of telepresence
46 BT International: Europe
46 BT International: Europe
46 BT VDC available in Benelux
46 Green facilities expanded in Nieuwegein
46 Imtech heralds data centre maintenance role
47 Fibre agreements ends months of deadlock in Italy
48 Tech Mahindra
48 Tech Mahindra considering LatAm acquisition

49 BT Wholesale

49 Customers
49 KCOM on partnering BT
50 Fibre
50 BT Wholesale trumpets 5Mbps fibre service
51 Network
51 BT defends network resilience

51 Openreach

51 Fibre
51 BT to conduct 1Gbps fibre trials
52 First Cornish fibre beneficiaries announced
52 Operations
52 Openreach trials electric vans
53 Suppliers
53 BT selects Avanti for satellite broadband
53 BT selects IMServ for energy monitoring

54 Index

Index

A
Accenture, 30
Allstate Northern Ireland, 11
Amey, 37
Anglo American Plc, 9
Apple, 28, 36
AstraZeneca, 24
AT&T, 33
Avanti Communications, 52
Avaya, Inc., 38
B
Bezeq International, 24
Brett Martin, 11
British Airways, 18
British Broadcasting Corporation (BBC), 12, 16, 28
- iPlayer, 12, 28
BSkyB, 12, 23, 29
- Sky Sports, 11, 12, 16
BT Group, 4, 5, 6, 7, 8, 15, 17, 18, 19, 20, 21, 22, 23, 24, 28, 29, 30, 37, 44, 45, 47, 50, 51, 52
- Asia
- Tech Mahindra, 17, 47
- BT Fleet Partners, 20
- BT Global Services, 4, 6, 7, 9, 16, 17, 38, 39, 40, 41, 42, 43, 44, 45, 47
- BT Asia Pacific, 39, 44
- BT Benelux, 39, 45
- BT Germany, 45
- BT International, 44, 45
- BT Italia, 34, 42, 46
- BT Latam, 41
- BT Radianz, 39
- Customer Innovation Showcase Centre, 44
- MeetMe, 34
- Next Generation Contact Centre, 37
- One Source for Cisco TelePresence, 33
- Spain, 39
- Virtual Data Centre, 37, 45
- BT Innovate & Design, 18
- 21CN, 17, 38
- Ribbit, 22
- BT Pension Scheme, 8
- Crown Guarantee, 8, 22
- BT Retail, 6, 7, 8, 10, 11, 12, 16, 18, 21, 26, 27, 28, 29, 30, 31, 32, 34, 36, 37, 49
- Adam and Jane, 27
- BT Business, 31, 32
- BT Care (Twitter), 27
- bt.com, 26, 27
- BT Conferencing, 10, 33, 34
- BT Engage IT, 36
- BT Expedite, 36
- BT FON, 31, 32
- BT Fresca, 36
- BT Infinity, 4, 11, 49
- BT Ireland, 11, 37
- BT Openzone, 31
- BT Total Broadband, 26, 31
- BT Vision, 4, 11, 12, 16, 27, 28, 29, 30
- One Plan Plus, 10
- OnLive, 28
- PlusNet, 11
- Race to Infinity, 26
- BT Wholesale, 6, 7, 13, 15, 17, 23, 37, 48, 49
- Executives
- Alvarez, Luis, 39
- Baker, Andy, 29
- Balaam, Martin, 36
- Bowen, Dave, 20
- Burger, Bas, 39
- Calvert, Sam, 26, 27
- Campagna, Enrico, 34
- Chanmugam, Tony, 8, 15
- Clark, Chris, 33
- Edgington, Andrew, 20
- Evans, Peter, 37
- Gallindo, Sérgio Paulo, 41
- Garfield, Olivia, 20, 21, 50
- Hageman, Edwin, 39
- Hill, Ian, 51
- Hood, Hugh, 29
- Houlston, Andrew, 52
- Kavanagh, Mary, 44
- Kelly, Jeff, 38, 39
- Livingston, Ian, 4, 5, 12, 20, 21, 24
- McCann, Kim, 39
- McCormack, Aaron, 33, 34
- McManus, Frank, 37
- Narang, Sudhir, 44
- Nicholson, Andy, 38
- Patterson, Gavin, 18, 29, 31
- Rogers, Neil, 38, 43
- Sciolla, Corrado, 42
- Sutton, Neil, 38
- Taylor, Kevin, 39, 44
- Timmons, Emer, 39
- Waters, Caroline, 21
- Watson, Marc, 27
- Ex-executives
- Entwhistle, Janet, 20
- Geddes, Martin, 22
- Green, Andy, 40
- Halbert, Bill, 48
- Quartermaine, Mark, 39
- Ramji, Al-Noor, 22
- Rangaswami, JP, 22
- Innovate & Design
- Adastral Park, 24
- Openreach, 4, 6, 7, 13, 15, 16, 23, 50, 51, 52
- Wind for Change, 24
Business in the Community, 21
C
Cable&Wireless Worldwide plc, 48
Caixa Econômica Federal, 41
Cisco Systems, Inc., 33, 34, 40
Citibank, 16
COLT Telecom, 23
Communications Workers Union, 22
Competition Appeal Tribunal, 23
Competition Commission, 23
Computer Sciences Corp, 43
Cornwall Development Company, 51
D
Defence Fixed Telecoms. Services, 9
Department for Business Innovations and Skills (BIS, UK), 24
Department for Work & Pensions (DWP, UK), 9
Department of Health, 43
Digital Economy Act (UK), 19
DigitPA (Italy), 42
DTV Services
- Freeview, 29
DZ Bank, 18
E
EDS, 39
European Union, 21, 45
- European Regional Development Fund, 51
F
Facebook, 27
FastWeb, 46
Finmeccanica, 42
Fitch Ratings, 22
FON, 32
- Fonera SIMPL, 32
- Varsavsky, Martin, 32
Forrester, 33
G
General Electric Co. (GE)
- NBC Universal
- National Broadcasting Company (NBC), 27
- NBC Universal International Television Distribution, 27
Getronics NV, 39
GlaxoSmithKline, 24
Google, 27, 36
- YouTube, 27, 32
H
Hargreaves Lansdown plc, 16
Hewlett-Packard, 39, 42
High Court, 19
Hutchison Whampoa
- 3 Italia, 46
I
IAS 19, 8
IBM, 40
IMServ, 52
Imtech, 45
J
JiWire, 31
JPMorgan Chase, 16
K
Keys Group, 11
Kingston Communications (KCOM), 48
Kontiki, 33, 34
L
Lifesize, 34
Lloyds Banking Group, 40
Lyle & Scott, 36
M
Mahindra and Mahindra, 17
Metropolitan Borough of Sandwell, 43
- Transform Sandwell, 43
Microsoft, 28, 34
- Mediaroom, 28
Ministerio de Defensa de España, 9
Ministry of Defence, 9
N
National Health Service (NHS, UK), 43
- National Programme for IT, 43
Network Rail, 9
O
Occupational Pensioners’ Alliance, 22
Ofcom, 13, 21, 23
- LLU, 13, 15, 23
- Price controls, 23
- Wholesale Line Rental, 7, 23
Olympic Games
- London 2012, 15
OnLive, Inc., 28
OPTA, Netherlands, 45
Ovum, 17
P
Point Topic, 24
Polycom, 34
Procter and Gamble, 9
Pushbutton, 28
R
Research In Motion
- BlackBerry, 34
Royal KPN, 45
S
Salesforce.com, 22
Starbucks, 31
Survitec Group, 11
Symantec, 36
T
TalkTalk Telecom Group plc, 19, 23
Tandberg ASA, 34
Tech Mahindra, 17, 47
- Mahindra Satyam, 47
Technology
- 3G, 32
- Broadband, 4, 6, 7, 11, 13, 16, 19, 20, 21, 24, 26, 28, 29, 31, 37, 38, 44, 46, 49, 50, 51, 52
- ADSL2+, 11
- Fibre, 4, 6, 15, 16, 20, 26, 37, 46, 49, 50, 51, 52
- FTTC, 20, 49
- FTTP, 20, 50
- Ethernet, 15, 23
- Infrastructure-as-a-Service (IaaS), 45
- IP, 22, 28, 40, 42, 48
- LLU, 15, 23
- Next-generation networks (NGN), 37, 46
- Private circuits, 23, 45
- R&D, 24
- Telepresence, 33, 34, 44
- Television
- 3D, 27
- HD, 12
- VoD, 27, 28, 33
- Unified communications (UC), 33, 38
- VoIP, 48
- Wi-Fi, 31, 32
Telecom Italia SpA, 46
The Cloud, 31
The Listening Company, 26
Tiscali SpA, 46
Twitter, 27
V
Virgin Media, 12, 23, 29, 31
Vodafone, 24, 32, 46
Vtesse Networks, 40
W
War on Want, 24
Welsh Assembly, 21
Wiggles, The, 27
Wind Italia, 46
World Communication Awards (WCA), 17
Y
YouView (Project Canvas), 29, 30

About BTwatch

Report: #218
Covering: November-December 2010
Published: December 2010
Next report: January 2011

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