B.T.'s Strategic Priorities
· Keep a relentless focus on improving customer satisfaction.
· Put broadband at the heart of B.T.
· Create mobility services and solutions.
· Transform our network for the 21st century.
· Achieve competitive advantage through cost leadership.
· Lead the world in network-centric ICT solutions.
· Re-invent our traditional business.
· Motivate our people and live the B.T. values.
B.T. Groups structural problems.
· Under attack about its treatment of competitors.
· B.T. is being forced to make major structural changes by Ofcom.
· Ofcom faced with difficult decision ? must ensure fair trading but would like to encourage the kind of investment in new technology that B.T. can afford.
· Only total split of B.T. Wholesale from the B.T. Group will satisfy competitors who feel that B.T. Retail has the advantage.
· No incentive for B.T. Wholesale to split as currently B.T. Retail is a captive customer.
· Head of Retail, Pierre Danon, has demanded right to circumvent prices charged by B.T. Wholesale.
- This could offer Ofcom an alternative to enforced break-up of B.T. Group.
· Revenues from traditional calls being eroded by competitors and mobile calls.
· Recent interim results showed revenue from I.T. and broadband up 36% to £1.03 Billion.
· Head of Retail resigned due to board's refusal to allow him to follow his strategy for increasing sales of broadband.
Future Strategy
· Some believe that VOIP could be the biggest threat to BT's monopoly since privatisation.
· VOIP calls in Japan have taken off in a major way in the past year, resulting in a saving of 80% on telephone bills.
· VOIP becoming increasingly popular in U.S. and starti ...