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BT Group publishes latest figures round-up
Thursday 15 May 2008 13:15:03 by Andrew Ferguson

With LLU coverage around the 70% mark and line rental and call deals being pushed heavily it is surprising to see such upbeat results from the BT Group. Part of this is down to the group repositioning itself from being a simple telephone service company to a complex web of interwoven business groups delivering a wide variety of services.

Overall there were some 12.7 million broadband customers at the end of March 2008, this includes unbundled connections which still use an Openreach copper telephone line. BT Retail had some 4.4 million customers, and LLU accounts for 4.3 million lines. The last quarter saw some 499,000 connections, of which some 30% were with BT Retail (150,000 net additions).

BT Wholesale saw its revenue dip by 12% in the fourth quarter; broadband brought in £54 million less revenue due to price reductions which were worth £24 million and another £30 million due to the continuing migration to LLU connections. One interesting point was that premium rate services (PRS) saw a decline in revenue, which perhaps reflects the various telephone competition/voting problems that have plagued UK media recently.

BT Openreach was the recipient of some of the revenue lost by BT Wholesale, since it saw an increase of £45 million in revenue from other communications providers, but this was balanced out by the loss of revenue from other lines of business within BT. The last quarter saw some extra 600,000 LLU lines connected.

BT Retail seems to be holding its own with reasonable growth in subscriber numbers. Its expansion from just calls and broadband is reflected in its Home IT Support Service having some 41,000 customers, up 18,000 during the last year. BT Vision the FreeView/IPTV hybrid has reached a total of 214,000 customers, with 94,000 net additions in the last quarter. The average number of views of VoD content per subscriber per month is 29.

The 21st Century Network seems to be progressing, and the result is it is already delivering cost savings of the order of £600 million. As yet 21CN has not really impacted the average broadband user yet. The broadband product Wholesale Broadband Connect should reach a critical mass during 2009, and the investment needed from providers to exploit the service appears to be slowing down the release of retail products. 21CN, when completed, promises a much more integrated and software driven system which should make service switching cheaper and quicker and the roll-out of new products faster.

Ian Livingston, the incoming Group CEO, has a tough job ahead. The next few years are crucial in deciding where BT will be in the next twenty to thirty years. Ben Verwaayen brought BT kicking and screaming into the broadband arena, but the time for the next leap forward is due.

Comments

Posted by chrysalis over 9 years ago
Interesting figures, the shareholder dividend is increased with a reduced profit, so what made way for that? BT seemed to have borrowed an extra 1.5 billion between 2007 and 2008 when they had the cash free. I wonder what the interest payments on 9.5 billion are?
Posted by g-bhxu over 9 years ago
".....the shareholder dividend is increased with a reduced profit, so what made way for that?"

Nothing. It comes from the £4.50 a quarter they charge customers that don't pay by direct debit
Posted by herdwick over 9 years ago
"so what made way for that" - nothing, that's what BT is there for. It is their company, not yours, so they can have whatever dividend they please within company law. Bwahaha !

The cash flow is the really interesting figure:

Free cash flow of £1,503 million, up 11 per cent

Full year proposed dividend of 15.8 pence per share, up 5 per cent
Posted by 2doorsbob over 9 years ago
I had a call yesterday from BT wanting to save me £2.70 and give me free evening and weekend calls on a kind of rolling contract that only gives you a short window to disconnect once a year ..it seems to me there trying everything ..i feel with cheaper mobile deals and turbo hsdpa coverage improving the need for fixed line services is reducing infact llu could be bt's saving grace
Posted by 2doorsbob over 9 years ago
but without local loop investment people will not be fooled forever ..my line is so bad if i replaced it with wet string i would get better SNR lol
Posted by grapevine1 over 9 years ago
We cant expect OFCOM that "teapot made of chocolate" to protect consumers/customers from this form of "contractual entrapment" but I guess Vivian Reding the European comisioner will soon be made aware by some good briefing about these "low back street contracts" that catch/trap so many customers. We should all be writing to her and our MP's to point out these sharp practices.
Posted by crusader666 over 9 years ago
"short window to disconnect once a year " - nonsense. No time limit stated in Ts & Cs, just before the 12 months is up - "all you need to do is let us know before the renewal date." If you can't manage your own affairs competently get someone else to do it for you.
Posted by comnut over 9 years ago
verify this, but "contractual entrapment" means *nothing* when you change your line away from BT... mate of mine did this to talktalk, was afraid about the 'broken contract' cost from BT - more than 6 months later, no sign of any bill.... :) :)
Posted by grapevine1 over 9 years ago
comnut could you please explain a little more?
as If your 'mate' as you say did this to talktalk, shurly if it was a contract he had with talktalk how would he have been concerned about the 'broken contract' cost from BT.
Sorry about the request for clearer explanation.
Posted by grapevine1 over 9 years ago
crusader666 appears to be speaking officially on behalf of BT, (no disclaimer given) as he says "let us know". crusader666 therefore admits by the use of words that you roll into another contract if you dont notify of withdrawl from contract before end of said contract, thats even more devious and sinister. BT attempt to trade round the world and gain respect and confidence from the use of the word "British". Its time the nations of the World are advised that trading with such a company should be with great care if at all with such a company.
Posted by crusader666 over 9 years ago
Oh dear, what utter tosh. The "" are quotation marks which indicate, to those who understand basic punctuation, that the selected text is indeed a quote taken from an actual document. Document being BTs Ts & Cs for the call package in question.
(no disclaimer given)
Posted by herdwick over 9 years ago
my Dad had his phone line slammed by Elite Comms and BT billed him for the balance of minimum term but later withdrew the charge in view of the circumstances.
Posted by comnut over 9 years ago
My friend moved into a new flat witha BT connection, but no service - he then paid BT to start this again, a condtion of getting tiscali(that was still a good service in the area, used by 3 other friends without problems..) - he was very worried about the costs involved in changing his line to tiscali, and had long talks with BT, who said this would cost £70 ... and he was still worried about advanced rental costs, etc....

I told him to steer clear of Talktalk, but he was suckered in by CPW 'free phoen & BB' chat...
Posted by comnut over 9 years ago
Of course, guess what 'FLW idiot' I called him! :D
I was even more suprised that he got all the hardware a week later, his phone worked well, on the same number!
The Phone help was awful, until I had a look at the TT forum, and a rep on there sorted out the problems in only a day or so! still no problems with phone or BB, 6 months later!
still worried about the BT bill, but it has been 6 monts since, and nothing from BT - so I said quit worrying! :)

Posted by comnut over 9 years ago
If you have not seen it yet, have a look at the latest PCPRO(july 2008- big BB article!) - on inside back page is the REAL reason why ALL(less than £500 a month) ADSL is so bad, by design...
Posted by herdwick over 9 years ago
"why ALL(less than £500 a month) ADSL is so bad,"

without reading it I can see it's going to be total carp.
Posted by CARPETBURN over 9 years ago
I always suspected BT were idiots today they proved it for me... Around 5.30pm today a indian gentleman calls me and asks if i have broadband, I reply "Yes thankyou" They ask how much i pay and what speed it is... I reply and answer truthfully.
He then went on a one breath of oxygen filled gibber about being able to provide faster speed and it cheaper (yes he thinks they can give me over 16Mb for under 25quid)... Didnt have time for him after this i said "you are stupid.. Goodbye." (oh and before you say it 21cn is 2009 for me LOL)
Posted by CARPETBURN over 9 years ago
With fools and liars like this employed and BT happy to pay them and shareholders its no wonder many are starting to avoid BT like the tired old plague that its become.
Posted by Somerset over 9 years ago
'BT attempt to trade round the world and gain respect and confidence from the use of the word "British". Its time the nations of the World are advised that trading with such a company should be with great care if at all with such a company.'

I was not aware they used the 'B' in BT for anything.

Maybe you and Carpetburn could talk to all the FTSE companies they work with in 170 countries.
Posted by grapevine1 over 9 years ago
Let me assure you that I am talking to those around the world including the Captains of FTSE industry. Let me assure you their eyes are opening wide.
Posted by grapevine1 over 9 years ago
Let me give you just one more eye opener that I have, a copy signed by the Principal Ombudsman Richard Sills, in which in relation to a complaint concerning quality of service in the supply of land lines, and he states "any issues relating directly to BT Openreach remain outside of my remit for investigation". So Joe public has little recource for assistance from OTELO and we all thought that we could rely on the Ombudsman as a heavyweight, Disappointingly, how wrong we are!
Posted by c_j_ over 9 years ago
Re PC Pro: he's a bit late, the main reason was reported here on AG news FOUR YEARS AGO - BTwholesale Capacity Based Charging prices are based on an average usage of 20kbit/s (say 6GB/month). Now actually that's been not far off reality as a starting point, but if you double the 6GB/month to 12GB/month, which some folk would say is still "light" usage, you pretty much double the BT-based ISP's biggest cost (CBC centrals), or you get much worse QoS. As for "unlimited", let's not go there.

http://www.thinkbroadband.com/news/
1620-bt-wholesale-sounding-out-big-changes-to-adsl-pricing.html
Posted by comnut over 9 years ago
herdwick: step up for the dont wanna bother, totally ignorant idiot award then... the others here may be a bit crazy, but at least they LOOK!
Posted by comnut over 9 years ago
answer the phone?? not if I do not know the number!!.... >:(

Posted by comnut over 9 years ago
Hey, I KNOW BT are idiots... I know a guy who works for them, even he says so(good money, keep it quiet.. :) )... the bigger a company gets, the harder itis to get any sens out of them..
Posted by comnut over 9 years ago
c_j_ : no he is not 'late' ... when adsl *came out*, and even now, it is described as a 'contended service' - and there were doubts about how and if it would work!!
here is some talking *openly* :\ about contention... WOW! thats FAST for 2000!! :p
http://www.thinkbroadband.com/news/i/49.html
http://www.thinkbroadband.com/news/51-rumours-on-bt-openworld-site-about-80-1-contention-ratio.html
yes, a lot of worry, now 'covered up' to stop customers panicking, and not buying!!
Posted by comnut over 9 years ago
:p it was 'august 2000' - the date of that article!!

I guess Honeyball is just responding to the idiots who do not research the topic, just keep blaming the ISPs, without having a clue...

Do note that he does put it in it's 'historical perspective' ...

and people are just now starting to realise, 'you get what you pay for'...
Posted by comnut over 9 years ago
Just ask yourselves, what 'practice' is it, to price something at HALF the normal price, and then when you buy 100's of that, to discover that it has amost no taste.. (ie, you cannot complain about it on 'bad/rotten' grounds..) ???
Posted by CARPETBURN over 9 years ago
quote"BTwholesale Capacity Based Charging prices are based on an average usage of 20kbit/s"

Who??? What?? which mythical company and capacity charge for my internet do you speak of??? hehe
Posted by Somerset over 9 years ago
grapevine1 - tells us more, who do you recommend?
Posted by chrysalis over 9 years ago
herdwick how many shares do you own haha, but you raised the answer I was looking for and that is their shareholders come first.
Posted by chrysalis over 9 years ago
llu is not such a bad thing for BT they still gain revenues from it, they lose BT central revenues but its better than the same customers moving to cable.
Posted by Somerset over 9 years ago
Ebbsfleet pricing:

https://www.btwholesale.com/pages/downloads/21_Century_Network_Community/WBC_FTTP_Indicative_Pricing_Slides.zip
Posted by CARPETBURN over 9 years ago
quote"Ebbsfleet pricing:
........."

And the real life fastest adsl2+ BT based service pricing for the other 99.9% of the population is....
http://www.thinkbroadband.com/news/3559-retail-pricing-for-wbc-adsl2-service-starts-to-emerge.html
Enjoy LOL

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