BT Retail to split to help differentiate between business and consumer
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.