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BT Retail to split to help differentiate between business and consumer
Tuesday 30 July 2013 11:25:28 by Andrew Ferguson

It would appear that as well as a new BT Group Chief Executive for BT from September (when Gavin Patterson takes over from Ian Livingston) that a rearrangement of BT Retail is to take place, with consumer and business functions splitting into two separate businesses, BT Consumer and BT Business respectively.

This split is apparently designed to help BT Retail compete in the fast moving world of consumer broadband and it may also make it easier for the business world to deal with the business products as there will be more scope to produce products that meet the varied needs from the sole trader through to the firms with 200+ employees, while avoiding the rough and tumble of the consumer broadband deals.

"I am thrilled to be given this opportunity. BT is in a four way tussle with Sky, Virgin and TalkTalk for broadband customers and we are at the start of an exciting journey with BT Sport. There has never been a better time to be a consumer and we plan to up the ante in the coming years."

John Petter, MD Consumer

It seems that this split will probably not appear in the financial figures until the start of the next financial year, but it could make for an interesting head to head fight with Sky, as the figures for consumer broadband once the business broadband lines are removed will shrink at a time when Sky is aggressively looking to grow.

Looking at this from a sideways point of view, it may also be that by splitting the business arm further away from the consumer arena will make the various voucher deals on their way as part of the super connected cities plan easier to promote and manage.

Comments

Posted by dogbark over 3 years ago
Plenty of notice there for you to split the BT Broadband forum into BT Consumer and BT Business then.
Posted by andrew (Favicon staff member) over 3 years ago
And listings and other bits too
Posted by Kushan over 3 years ago
I've yet to hear of a single person who left one ISP for BT.
Posted by herdwick over 3 years ago
you haven't looked very far - lots of them switching to BT Infinity.
Posted by GMAN99 over 3 years ago
"I've yet to hear of a single person who left one ISP for BT. "

hahahahah
Posted by vicdupreez over 3 years ago
Ok, so how much is this stunt going to cost? I can not remember how many times BTInternet became part of retail, split from retail, etc... What are they at? KEEP TO WHAT YOU ARE GOOD AT... Making decisions clearly is not it...
Posted by JNeuhoff over 3 years ago
This is just an internal BT thing, has nothing to do with e.g. providing better fibre broadband. This is just another BT publicity stunt.
Posted by vicdupreez over 3 years ago
This is my point... Stop spending money on this crap and get back to providing service :D
Posted by Bob_s2 over 3 years ago
The two markets though are very different and it makes sense to split them, FTTC is more a consumer product
Posted by zyborg47 over 3 years ago
BT retail and wholesale should split from openreach, now that would be a bit of good news and when I say split i mean split, different company, different shareholders and different CEO.

Never going to happen, BT the pathetic company it is, have still got a monopoly
Posted by JNeuhoff over 3 years ago
@zyborg47: I fully agree, have a completely independent national network infrastructure, and separate service providers.

@Bob_s2:Maybe you are not aware of the fact that BT sells broadband packages to businesses, too, see e.g. http://business.bt.com/packages/broadband-and-phone/, which includes FTTC for businesses. Makes perfect sense for many small to medium sized businesses.The same is true for FTTPoD (though the latter won't be available for a long time to come, it is still being 'trialed')

Posted by GMAN99 over 3 years ago
"FTTC is more a consumer product " Lots of businesses are opting for the business version of this so.... nope.
Posted by GMAN99 over 3 years ago
Why is it a publicity stunt?

Strange comments
Posted by jchamier over 3 years ago
"I've yet to hear of a single person who left one ISP for BT."

I left BE (unlimited usage) on 14meg down/1meg up for BT Infinity on 46meg down/10meg up, unlimited usage for about £6/month more!
Posted by GMAN99 over 3 years ago
I just love how we was expecting to be informed of each migration to Infinity ;)
Posted by Bob_s2 over 3 years ago
Yes of course there is some overlap between business and retail but FTTC is still mainly a consumer product. It may be as well that the consumer business may possibly handle the small one man businesses

Splitting the Business & Consumer arms from Openpeach by spinning off Openreach as a separate wholly owned BT company makes sense. THis would put it on the same basis as DABS
Posted by andrew (Favicon staff member) over 3 years ago
What has today's announcement got to do with Openreach?
Posted by GMAN99 over 3 years ago
" It may be as well that the consumer business may possibly handle the small one man businesses"

Sorry Bob I'm not sure I can agree there I don't think you understand its use. ADSL (the business variant) was used by many businesses and more than "one man" set-ups. FTTC business just takes that one step further. It isn't a consumer product, its a product used by consumers and business, its not aimed at one of those but both.
Posted by GMAN99 over 3 years ago
Businesses can and do use FTTC as their primary connection, for bigger businesses they can and do use it as their back-up link to their primary connection just as they did with ADSL in the past.
Posted by themanstan over 3 years ago
Larger businesses often have a light connection (business ADSL or FTTC) as a backup should their primary connection go down.
Posted by chrysalis over 3 years ago
why diff shareholders? openreach replacement should be not for profit.
Posted by themanstan over 3 years ago
The usual case would be existing shareholders surrender certificates for 2 new certificates one for each company at the valuation at point of offering. The problem being apportioning the debt and pension accountability between the units.
Posted by vicdupreez over 3 years ago
@ chrysalis. I have been saying this all along... Government gets rid of that awful train idea to make funds available. Then they take the infrastructure back from BT and builds out a fibre network everywhere. Once fibre to a property is available, the copper gets ripped out and sold for copper value to help pay for the whole thing. Now they lease those fibres back to the ISP's who will provide you with your connection. This is the ONLY way there will be fair and impartial competition in the UK.

Take the money that is left and lower train fares... Job done.
Posted by vicdupreez over 3 years ago
And this way BT gets their wish of being a content provider, and do not need to worry about those pesky network issues...
Posted by themanstan over 3 years ago
All the infrastructure of BT or just that associated with Openreach?

Posted by vicdupreez over 3 years ago
The access infrastructure... basically the backbone into the exchanges, and from the exchanges to the homes and businesses. I am not sure what exactly is associated to openreach. What I do know is that openreach does not exist in Northern Ireland, or rather did not a year ago.
Posted by themanstan over 3 years ago
Openreach is currently exchange to customer.
The backbone into the exchange is not Openreach because it mimics what other ISPs have into the exchange. If you take that away from BT, then they are at a disadvantage compared to other ISPs as they have nothing going into exchanges. Talk Talk would have backbones entering 93% of exchanges and BT 0%.
Posted by GMAN99 over 3 years ago
Openreach don't have any infrastructure they maintain it for BT. I would like to see anyone "take back" what was sold.

I'm amazed people think the government would do wonders with broadband, show me some good similar examples, take your time :)
Posted by vicdupreez over 3 years ago
Ok. I have been thinking about this all night. GMAN99 you are absolutely correct. That will be a very slippery slope. Kinda like the "porn" filters they are pushing on us. In the new network BT gets free access to the new network for 10 / 15 / 20 year to pay them back for their "investments".
Posted by vicdupreez over 3 years ago
I am not suggesting that the government go into the broadband business. That would be a disaster. I am suggesting that the government "own" the network, and pay openreach (or another suitable party) to run it, maintain it, build it out providing a fair and equal playing field. They will wholesale the network to ALL the ISP's. BTW... Virgin Media's, and all the other networks that exists out there today gets swallowed into this also, for the same deal as BT... Free access is available only where they had a network swallowed into the new network.
Posted by vicdupreez over 3 years ago
And GMANN99 to your last question... There are no good examples, since this kind of project is a long term thing, and governments change in shorter time. Politicians will chuck their grans under a bus if it will get them elected... Australia may have been a good example, but what they are doing now is screwing the whole thing up...
Posted by GMAN99 over 3 years ago
And that's the trouble vicdupreez , the "investments" , a lot of people think, arr nothing has changed, same poles, same copper etc etc. But the "network" looks nothing like it did when they bought it. I'm talking about the core, the backbone, the Ethernet PoP's etc, none of that existed back then. This "free access" for even 20yrs wouldn't come close to covering the investment's they have made since it was purchased. Its a nice fantasy idea that many have had but I can't see it happening.
Posted by vicdupreez over 3 years ago
Oh you can bet your last penny it would not happen... What would happen if someone, anyone with deep pockets turns around and says, it is time we fibre this entire rock, and sell access on a wholesale basis to ISP's. How long do you think BT will last? Of course you will have your bitter enders, but if the wholesale price is correct, everyone will jump from the BT ship. Also will not happen... Anytime soon anyway... By Purchased I assume you mean when the government sold its shares in 1984, 1991 and 1993 right?
Posted by GMAN99 over 3 years ago
Yes sold as shares. If someone came along and created a new national fibre network it would be great, great competition. Sadly its unlikely, the closest we have is Virgin
Posted by JNeuhoff over 3 years ago
No public funding via e.g. the BDUK should have been given to BT in the first place. Rather, public funding should have been tied up to a ROI condition, kind of a long-term loan. What vicdupreez suggests, pretty much sounds like what is being done in Australia with its NBN (well, at least while its current government lasts).
Posted by vicdupreez over 3 years ago
hehe. That is pretty much what I was suggesting yeah. Like I say though, It will never work in the UK (and will not work in Australia either) because politicians will sell their nan for a vote... Anything to get themselves elected... I fear that the NBN in Australia will be severely changed (read killed) if a new government is elected there. Sad, but hey... We keep voting for them...
Posted by pipesmoker over 3 years ago
Posted by GMAN99 6 days ago
"I've yet to hear of a single person who left one ISP for BT. "

I returned to them thinking I was going back to the engine driver, ie paying more for a better service.

I have been without a landline telephone since 1000 hrs Wednesday 31st July, 2013 and a much reduced broadband speed and the fault site says they hope to fix it by 2100 August 7th. I am on my 6th day of waiting in for them to contact me.

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