BTwatch
This release
: #305
June-July 2019: 98pp
Releases/year: 10+
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EXECUTIVE BRIEF

GROUP

MANAGEMENT UPDATE: FY18-19: Jansen looks forward with big ideas, little detail [p.6]

  • Putting the 'I' in team, Jansen sets out aspirations
  • BT Group, financial highlights, FY18-19
  • Jansen shows where BT is falling behind the competition
  • Employee contribution under Jansen scrutiny
  • More detail to be demanded in coming quarters
  • Potential fault lines probed by analysts
  • Hail to the technology chiefs

AGM: Divisional breakdown: Consumer still doing the heavy lifting [p.11]

  • BT Group, performance by unit, FY18-19 (adjusted)*
  • FY19-20 guidance: going down, but preparing to go up
  • Dividend stable for now
  • Rumours suggest board dividend split

Financial reports: Orange sells last BT shares [p.14]

Restructuring: Labour considering BT renationalisation [p.15]

  • BT steps back on ultrafast target, promises leap forward
  • Opportunity to move fast by the mid-20s
  • Selley calls for more government support in fibre rollout
  • What now for G.fast?
  • Jansen pitches share ownership to shift BT culture
  • Jansen settling employee nerves
  • New CEO, new BT branding
  • New brand may reverse BT's marketing value decline

BT TSO: Government releases £40m more for 5G trials [p.23]

  • Simplifying planning goals
  • MoD spectrum freed up
  • Still dithering on Huawei

Strategy

PARTNERS: McRae talks-up cloud partner capabilities [p.25]

  • Watson also pondering nature of BT relationship with cloud players

SUPPLIERS: BT recruits Juniper for Network Cloud [p.27]

  • BT keeps up Huawei defence
  • Nokia distances itself from CTO Huawei comments

REGULATORY: BT finally confirmed as main USO provider for broadband [p.31]

  • No universal quick fix
  • FWA at the heart of USO

PEOPLE: People movement highlights [p.33]

DIGITAL TRANSFORMATION WORLD 2019

TM FORUM: DTW19 underlines need for collaboration and speed [p.37]

  • Higham among the high-flyers
  • Get the full Digital Transformation World 2019 Special Report
  • Collaboration a constant in tumultuous times
  • Foundations for 5G (and maintaining relevance)
  • A living framework

TRANSFORMATION: Higham's people-centric IT transformation mission [p.41]

  • FromHereOn role in rebooting BT IT
  • Higham showing the way on cultural change…
  • … Human-centred design at the core…
  • … and worlds beyond IT to conquer
  • Tangible benefits beginning to materialise
  • A role to play in Jansen's new BT vision?

PARTNERS: BearingPoint in the mix as a digital catalyst [p.45]

  • Partnering BT on a winding path towards the public cloud

PROFILE: EXFO: EXFO offers assurance in changing world [p.48]

  • About EXFO's Service Assurance division
  • Strategic priorities for an automated future
  • Change as a constant in virtual world
  • Telenor partnership highlights common cause
  • Passive potential runs deep
  • Three UK showcases assurance for virtualised infrastructure
  • Catalyst contributions provide additional proof
  • 5G and a more consultative way of doing business for vendors and operators

CONSUMER

5G: EE stormz into 5G [p.56]

  • Launch party -- hit and miss
  • EE and 5G: facts and figures
  • Three vendors in running for BT 5G core
  • Rivals snapping at EE's heels

Digital Voice: Digital Voice moves to beta trial [p.59]

Pricing and tariffs: EE refreshes tariffs: axes Max; debuts Smart Plans, Swappables, Service Packs [p.60]

Products and services [p.61]

ESN: NAO signals headwinds for ESN [p.62]

  • Predicted problems come to pass
  • NAO report: Key remaining risks
  • New Motorola contract to support effective PTT with EE

LEGAL: Phones 4u 'price-fixing' controversy continues [p.65]

  • Who said what to whom?
  • Peers respond

Content rights [p.68]

Television services; MARKETING: BT signs as lead sponsor for England football team [p.70]

REGULATORY: Ofcom imposes more openness on EE and industry [p.71]

SUPPLIERS: BT TV select Couchbase's NoSQL database solution [p.72.]

ENTERPRISE

INNOVATION: Enterprise demos 5G applications in health sector [p.74]

  • Karonis ponders BT role in service provision

Corporate social responsibility [p.75]

Partners: BT extends NetNumber contract for IP Exchange [p.75]

NETWORKS: Cellnex acquires rights to market services at BT towers [p.76]

GLOBAL SERVICES

SECURITY: BT expands Cyber SOCs across globe [p.78]

  • Ribbon cut at expanded Sydney offices

OPENREACH

DIGITAL NETWORKS: Openreach prepares twin-track digital UK trials [p.81]

  • Key points from Consultation document
  • Salisbury: radar and microducting efficiencies

Regulatory: VDSL: Openreach doubles-up with new ReTx trial [p.86]

  • ECI FTTC cabinets: Huawei swap-out underway?
  • Amber lights flash, but independent Openreach drives on
  • Ofcom puts FTTP ball back in Openreach court

Networks

Products and services

SUPPLIERS: ADVA picks up synchronisation role [p.91]

  • 'Invisible' fibre designed for multi-tenanted buildings

Brexit: Openreach bracing for Brexit [p.92]

FURTHER READING

A

Accenture 50

ADTRAN 18

ADVA Optical Networking 91, 96

Oscilloquartz 91

Alphabet

Google

Android 57

Chromecast 61

YouTube 57, 61

Amartus 47

Amazon 26, 28, 44, 46, 60, 61, 68, 69

Amazon Prime 60, 61, 68

Amazon Web Services 26, 28, 44, 46

Apple 34, 60, 61, 66

Apple Music 60

iPhone 66

Arqiva 69

ASSIA 88

AT&T 38, 72

B

Bank of America-Merrill Lynch 15

BearingPoint 45, 46, 47

Benetton Group 76

British Broadcasting Corporation (BBC) 30, 57, 61, 68, 69, 93, 94

iPlayer 61, 68

BT Group 6, 7, 10, 12, 14, 15, 16, 17, 18, 21, 22, 24, 25, 27, 30, 31, 33, 46, 56, 70, 76, 85, 89, 93

BT Consumer 34, 56, 59, 61

BT Broadband 61

BT Cloud 26, 46

BT Mobile 34

BT Scotland 33

BT TV 22, 61, 69, 72, 94

Plusnet 8, 33, 34

BT Enterprise

BT Ireland 15

BT Redcare 22

BT Wholesale & Ventures 22

InLinkUK 75

IP Exchange 75

BT Global Services 10, 11, 12, 34, 46, 74, 77, 78, 79, 95

BT Espana 15

BT iNet 47, 48, 49, 51, 52

BT Italia 42

BT Technology, Service and Operations 23, 24, 26, 93

Directors

du Plessis, Jan 6, 10, 14

Hoettges, Timotheus 10

EE 8, 11, 14, 24, 32, 33, 34, 42, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 69, 70, 71, 75, 85, 94

Emergency Services Network 34, 62, 94

Executives

Allera, Marc 11, 33, 56

Allwood, Richard 81

Al-Qassab, Zaid 22, 33

Beswick, John 24

Burger, Bas 10

Foster, Kevin 88

Haston, Simon 33

Jeavons, Peter 33

Karonis, Fortis 75

Logan, Mark 91

Lowth, Simon 6, 14

McCall, Greg 24

McRae, Neil 25, 28, 30

Selley, Clive 10, 13, 17, 24, 92

Sherman, Michael 33

Tempest, Alex 76

Watson, Howard 10, 24, 26, 30, 44, 56, 58

Whale, Andy 85

Ex-executives

Patterson, Gavin 6, 7

Openreach 8, 9, 10, 11, 12, 13, 16, 17, 18, 19, 24, 31, 33, 34, 59, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 96

GEA-FTTC 82

WLR3 82, 85

C

Capita 34

Cellnex 76, 95

Channel 4 22, 33, 34

Chunghwa Telecom 47

Cisco Systems, Inc. 72

Citrix 46

CK Hutchison

Three Group

Three Ireland 15

Three UK 52, 59

Comcast 72

Confederation of British Industry (CBI) 19

Conservative Party (UK) 29

D

Deutsche Telekom 10, 38, 45, 65

T-Mobile 47

Digital Economy Act (UK) 24

Dixons Carphone 66

E

ECI 86, 87, 88, 96

Emirates Airline 68

Ericsson 47

EXFO 37, 38, 47, 48, 49, 50, 51, 52, 53

F

Facebook 94

Fédération Int. de Football Assoc. (FIFA) 70

World Cup 70, 94

Football Association 57, 68, 70, 94

G

Glastonbury Festival 69

Google 25, 26, 28, 38, 46, 58

Government Communications Headquarters (GCHQ, UK) 30

H

Home Office (UK) 62, 63, 64

House of Commons

Public Accounts Committee 62, 85

HTC 57

Huawei Technologies 24, 29, 30, 56, 57, 58, 86, 87, 88, 93, 94, 96

I

IBM 46, 50

Infonova 46

Information Commissioner's Office (UK) 69

Infosys 47

Intel 47, 88

ITV 68, 69

J

John Lewis Partnership 85

Juniper Networks 27, 93

K

Kingston Communications (KCOM) 31

L

LG 57

Liberty Global

Virgin Media 8, 15

M

M&G Prudential 34

Microsoft 26, 46

Ministry of Defence (MoD) 24

Motorola Solutions 62, 63, 64

Airwave 63

MTV 60, 61

N

National Audit Office 62, 94

National Health Service (NHS, UK) 74

Netflix 61, 69

NetNumber 75, 95

Nokia 30, 74, 87, 88, 93

NTT 47

O

Ofcom 17, 31, 32, 71, 85, 88, 89, 90, 93, 94, 96

LLU 82

Strategic Review of the Telecoms Sector 85

USO 31, 32

White, Sharon 85

Wholesale Line Rental 81, 82, 83, 84, 85, 96

OFS 92, 96

OnePlus 57

Ontology Systems 49

Orange 14, 15, 40, 47, 52, 65, 93

P

Phones4u 65, 66, 67, 94

PricewaterhouseCoopers 65

Q

Qualcomm 57

S

Samsung 57

Sckipio 88

Sony 69

Spotify 60

SSE plc 34

T

TalkTalk Telecom Group 8, 61, 69, 88

Technology

3G 39

4K (Ultra HD TV) 57, 61

5G 9, 11, 13, 18, 23, 24, 25, 26, 27, 29, 37, 39, 40, 47, 48, 49, 50, 52, 53, 56, 57, 58, 59, 60, 69, 74, 75, 76, 91, 93, 94, 95

Artificial intelligence 37

Broadband 12, 18, 31, 32, 34, 57, 61, 82, 86, 90, 93, 94, 96

DSL 82, 86, 88, 96

Ethernet 27, 57, 82, 84, 91

Fibre 9, 10, 12, 13, 14, 16, 17, 18, 24, 26, 31, 32, 34, 49, 59, 61, 81, 82, 83, 84, 85, 86, 87, 89, 90, 92, 96

Fibre-to-the-cabinet (FTTC) 86, 87, 96

Fibre-to-the-premises (FTTP) 16, 18, 81, 82, 83, 84, 85, 90, 96

G.fast 16, 18, 82, 84, 86, 88, 96

GSM 34

IP 59, 75, 81, 82, 83, 95, 96

ISDN 82, 84

Linux 28

LLU 82

LTE 91

PSTN 82

R&D 81

VDSL 86, 88, 96

VoD 69

Wi-Fi 27, 57

Telefónica 15, 38, 65, 67, 76

O2 UK 8, 59, 65, 66

Telenor 49, 51

Thomson Reuters Corp. 34

TM Forum 37, 41, 45

TVPlayer 61

U

UEFA 10, 70

UKTV 94

Unilever 33

Unite 58

V

Verizon Communications 47, 66, 72

VMware 46

Vodafone 8, 15, 38, 40, 45, 47, 56, 59, 65, 66, 67, 75, 76, 88, 93

UK 56, 59, 65, 66, 75

W

Walt Disney Company, The

ESPN 68

Y

YouView 69

  • The Da Vinci project is putting human-centric design at the core of BT’s IT approach, requiring a fundamental change in outlook for the telco.
  • Higham’s programme helping BT cut IT costs by nearly 40%, while improving internal perceptions of the Group’s IT function through new services.
  • Da Vinci approach expanding to encompass new digital services beyond traditional IT, and has potential to find a role within new CEO Philip Jansen’s transformation plans.
  • Half-way to delivering £380m in ongoing yearly savings.

Da Vinci, BT’s programme to transform its IT organisation to services-based and customer-centric offerings (BTwatch, #294), was the subject of a presentation by Rachel Higham, Managing Director (MD) of IT at BT, at TM Forum’s Digital Transformation World 2019 (TMF DTW19).

Higham, who gives herself the alternative job title of “Chief Sherpa of our Transformation Expedition” (see below), provided a progress report of the programme, which aims to fundamentally transform BT’s IT organisation over around five years.

At the programme’s commencement in 2017, the organisation encompassed 13,000 employees serving six vertically-integrated technology functions aligned to customer-facing units that manage products, marketing, sales, and customer support. Higham instigated the transformation programme as she assumed her IT MD role, and noted the challenges immediately faced by launching another change programme after a sustained period of cost transformation.

We saw 13,000 people who’d gone through seven years of cost-cutting, and were suffering a huge sense of change-fatigue. So, we decided to step back, and purposefully design the ‘way’ we wanted to transform, not just ‘what’ we were going to transform in the five years ahead. This is far more than just a technology play, or adopting a few new tool sets. It really is about moving 13,000 people to being human-centred, thinking about the human being, which is the customer, and then as they do that, thinking of themselves as fundamentally ‘in service’ of that customer. ” Higham.

A common theme that emerged from initial consultations on the programme, Higham added, was that BT’s IT approach needed to fundamentally change to become more fluid and ongoing. “We could no longer evolve in generational leaps every five, ten or even 30 years. That simply wasn’t good enough anymore, she said.

The project is named Da Vinci in part to mark the quincentenary of Leonardo da Vinci’s death, but also because of the way the polymath combined science and art “to take quantum leaps forward”. According to Higham, this was “something we wanted to emulate by bringing together design thinking and technology together to leap forward many generations.

To read more on the revamp of BT’s IT division, including insights into the scale of work that needs to be undertaken, subscribe to the full June-July release of BTwatch.

Image: TM Forum

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