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BTBusiness
This document provides an overview of BT Business, the business-to-business division of BT Group plc. It discusses BT Business' market context and strategic investments in areas like fiber broadband, mobile services, IT services, and conferencing. It also describes BT Business' organizational structure, sales channels in the UK and Ireland, and presents a case study of providing services to Anchor Trust, a UK housing and care provider. The key messages are that BT Business is a leading UK provider of fixed telecom services to SMEs and mid-market companies, and it aims to leverage this position to drive growth in mobile and IT services through strategic investments and improved customer service.
BTBusiness
- 1. BT Business Graham Sutherland,CEO BT Group plc
- 2. © British Telecommunicationsplc 2 Agenda Business description Market context Strategic investments Core business Channel reach Case study – Anchor Trust Key messages
- 3. © British Telecommunicationsplc 3 Our Journey 2001-2004 • 2005 TNS & Skynet acquired (now iNet) • 2006 acquired Dabs.com • 2007 acquired Lynx and Basilica • 2001 BT Business formed • 2004 BT Mobile launched (MVNO with Vodafone) 2005-2008 2009-2013 2013 • 2005 BT Ireland created (formerly ESAT BT) • 2008 DETI investment in NI started • 2008 Fresca acquired • 2008 Wire One acquired BTBusiness • 2009 Lynx & Basilica integrated to form Engage IT • 2010 Fibre launched • 2012 Plusnet for Business launched • MVNO deal with EE • 4G spectrum won • 2002 BT Openzone launched • 2004 Expedite acquired from NBS • 2009 RoI Consumer business sold to Vodafone BTIreland BT Enterprises • 2002 ESAT Group (bought in 2000) renamed ESAT BT • NI Consumer business separated • Exclusive partnership with Dolby • 2013 Tikit acquired • 2013 BT WiFi rebrand
- 4. © British Telecommunicationsplc 4 The new BT Business organisation The new organisation allows greater focus on small, medium and corporate mid- market business customers in the UK and Ireland Brings IT Services businesses together to realise synergies and drive growth IT Services • BT iNet • BT Engage IT • BT Business Direct • BT Tikit • BT Expedite & Fresca UK Corporate UK SMEBT Ireland BT Conferencing Small to mid-market SMEs, plus specific target markets for Enterprises SMEs & Public Sector in NI, Public Sector, Corporates, & Wholesale in RoI UK, foreign domestic and global businesses UK top-end SME businesses and corporate mid-market • UK Corporate (mid- market) Sales • Custom Solutions • UK Fleet • SME Sales • Enterprises Core • Enterprises Ventures • Business • Wholesale • BT Conferencing Core products • Voice • IP / UC • Broadband & Fibre • Networking • Mobile & WiFi PortfolioSalesCustomers
- 5. © British Telecommunicationsplc 5 Calls & lines Broadband Networking Switch E.g. Virgin Media, TalkTalk, Vodafone, O2, EE, Verizon, Daisy, resellers E.g. Virgin Media, TalkTalk, Daisy, XLN Telecom, Spitfire, Zen Internet E.g. Vodafone, Virgin Media, TalkTalk, Easynet, Colt, E.g. Verizon, Azzurri, Claranet, Vodafone, Maintel Competitive landscape The UK business market Leading player in fixed services – 52% share of business calls and lines1 – 30% share of business broadband internet access2 – 21% share of fixed network services2 Cross-selling opportunity in mobile and IT services Large customer base and greatest UK reach – c. 1m SME customers – A strong and trusted brand – Sales channels across all segments, with national coverage Very fragmented but competitive market Market size2 £3.9bn £4.8bn £12.9bn UK Business market size 1. Revenue market share, from ‘Ofcom Telecommunications market data tables, Q1 2013’ 2. Revenue market shares and market sizing from IDC custom marketing sizing model (for businesses with <1000 employees) and BT Business revenue data 38% 2% 2% 0% 20% 40% 60% 80% 100% Fixed voice and data Mobile voice and data IT services (addressable market) Marketshare% BT market share
- 6. © British Telecommunicationsplc 6 Provides audio, video and web conferencing in 170 countries in an £8.9bn market No. 4 player worldwide for audio1 No. 2 for audio in Europe1 A leading player in Europe for video Ireland and Conferencing markets Largest fixed communications provider for SMEs in NI Leading networked IT services partner for government and major customers in NI and RoI Second largest wholesale provider in RoI Major competitors in RoI are Eircom, Vodafone, Colt, AT&T and Verizon BT Ireland BT Conferencing The market opportunity for conferencing services2 £0.6bn £0.6bn £2.4bn 0 1 2 3 RoI Business (>100 employees) RoI Wholesale RoI IT Services Marketrevenue(£bn) Sources: 1. Wainhouse Research 2. BT GS estimates for FY 2012/13 based on data from Wainhouse Research and Gartner Size of market currently addressed Source: Market sizing data from IDC (customised for BT) for the product markets in which we are currently active Asia-Pacific £1,626m W. Europe (ex. UK / Ireland £1,053m North America £4,341m UK & Ireland £605m, C. & E. Europe & Russia £401m Latin America £241m MEA £599m Worldwide Total £8,864m
- 7. © British Telecommunicationsplc 7 Our beliefs on market trends Customers Competitive environment Demand for data will grow, driving demand for bandwidth and migration to fibre Wireless increasingly important as the distinction between fixed and mobile erodes Increasing move to cloud for applications, data processing and storage Technology Customer service demands rising as connectivity becomes increasingly key to business life Customers better informed, demanding excellent delivery, service and competitive pricing Increasingly interested in opportunity for their business from converged propositions Decline of fixed voice, with migration to IP voice over next few years Increasing competition from ‘over the top’ and IT service providers in core telecoms Industry consolidation within and across sub-sectors and countries will continue
- 8. © British Telecommunicationsplc 8 Our strategic investments Our strategic investments align with four of the key strands of BT’s overall investment priorities Foundations in place for an exciting future IT services IT services Delivering on our strategy Fibre TV & Sport Mobility 4G High-growth regions
- 9. © British Telecommunicationsplc 9 Marketing and outbound sales investment to communicate benefits of BT Infinity for Business and drive penetration Competitively priced voice and ‘BT Infinity for Business’ bundles Major drive in Northern Ireland, where >90% of homes and premises now passed On-going development of new business services that will leverage fibre Q1 2011/12 Q2 Q3 Q4 Q1 2012/13 Q2 Q3 Q4 Q1 2013/14 Q2 BT Business fibre customers (including NI) Fibre is still growing strongly Strategic investments fibre
- 10. © British Telecommunicationsplc 10 Strategic investments mobile and WiFi New MVNO deal agreed with EE – will make it easier to bundle Converged fixed and mobile solution being developed – provides a single platform for all voice devices 4G spectrum plans well underway – ‘inside-out’ strategy, focused on indoor and outdoor small cells, supporting voice, video and data – leverages our WiFi footprint – the largest in the UK Machine to Machine specialist opportunities being addressed 180 200 220 240 260 280 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mobilesubscribers(k) We have grown our mobile base 4G focus on urban / indoor capacity Picocells/Femtocells Micro/small cells 500m100m50m
- 11. © British Telecommunicationsplc 11 Strategic investments IT services Comprehensive portfolio of IT services Also two specialist businesses addressing retail and legal sectors Greatest focus on higher margin, annuity revenue − breadth of portfolio also important for pull- through Investing in data centres, hosting and cloud to leverage networking capabilities Potential to pursue additional vertical specialisms if opportunities identified Cisco specialist for networking and hosting infrastructure Specialist services for legal and accountancy firms Specialist services for the retail sector Sales and distribution of IT equipment to volume segment Leading HP and Microsoft specialist Our IT services businesses -5% 0% 5% 10% 2011/12 2012/13YoYrevenue change IT services revenue is growing
- 12. © British Telecommunicationsplc 12 Strategic investments BT Conferencing Aim to be the world’s leading conferencing provider BT MeetMe with Dolby Voice launched in October to grow and protect our audio business – exclusive, high quality audio with ‘spatial separation’ of participants Rebalancing video business from low margin kit to managed revenues Targeting growth geographies, including APAC, LATAM and Canada We have a broad scope of services Video Streaming Web Audio Solution design Integration and access Implementation Services Training and adoption In Life Management
- 13. © British Telecommunicationsplc 13 Strong position in legacy voice services Competitively priced voice and broadband bundles Targeted pricing initiatives that balance acquisition and margins Strategic investments will drive further cross- sell opportunities with voice -500 -400 -300 -200 -100 0 2009/10 2010/11 2011/12 2012/13 YoYNetlinelosses(k) BT line loss is improving Call minutes continue to decline Call minutes are increasingly migrating to mobile, email and VoIP BT Business minutes are declining slower than the market We are developing new IP voice and FMC solutions, which can be bundled with other services -15% -10% -5% 0% 2011/12 2012/13 YoYdecline Market BT Business Decline in traditional voice minutesAnnual line losses for BT Business Source: Ofcom data and BT Business’ own data
- 14. © British Telecommunicationsplc 14 Growth in broadband and networking services Bundled voice and broadband packages Dual brand with BT Plusnet for Business to extend market reach Free business hub, free installation and free access to BT WiFi Our broadband base is still growing Leader in network services Leading player in network services, including dedicated internet access and IPVPNs Help customers to migrate to higher bandwidths and more cost effective, flexible solutions, particularly Ethernet – Ethernet underpins growth in IP Voice and cloud services
- 15. © British Telecommunicationsplc 15 Unparalleled channel reach in the UK bt.com for online sales BT Business sales – telesales at 7 UK locations 39 Local Business Partners – exclusively selling BT products 27 Authorised BT Partners and their appointed resellers – independent specialists Specialist sales teams for niche products SME customers Corporate mid-market Desk-based account managers Field-based account managers Custom Solutions for end-to-end solutions − a centre of excellence in managed network services Product experts and bid managers to support sales Specialist sales teams for niche products
- 16. © British Telecommunicationsplc 16 And scale in Ireland and in global Conferencing Two sales organisations: Ireland Business (NI and RoI) and Wholesale (RoI) Networked IT services team with over 500 IT specialists – works with major client base in NI and RoI, including both governments Dedicated account teams manage wholesale clients Telesales and online sales in NI for smaller SMEs Ireland Conferencing Channels to market split geographically – Europe – APAC / AMEA – North America – Latin America BT Conferencing sales teams also work with BT Business and BT Global Services – Major MNCs account managed by BT GS
- 17. © British Telecommunicationsplc 17 Anchor Trust case study England’s largest not-for-profit provider of housing and care for the over-55s, with £264m turnover Offers purpose-built retirement properties and specialist care for over 35,000 people at over 1,000 UK locations Premises are a mix of offices, care homes and support of home workers Overview of Anchor Trust What BT is delivering Professional services to redesign IT Infrastructure Single point of contact service desk PC management and support Site infrastructure support Dual data centre hosting services under the new IaaS model Replication and Workplace Recovery Services
- 18. © British Telecommunicationsplc 18 Anchor Trust case study video
- 19. © British Telecommunicationsplc 19 Key messages Leading player in fixed telecoms in the UK SME and corporate mid- markets Key advantages include strong brand, breadth of portfolio and channel reach Opportunity to leverage these to drive growth in mobile and IT services Cost transformation and improvements in customer service continue to be important Key investments include, IP voice, fibre, 4G mobile, cloud and data centre services New organisational structure improves focus on growth opportunities and synergies
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