BT sets out plan for driving new services

Telecoms group BT today unveiled a new structure aimed at driving its transformation into a software-based services company.

BT said around 20,000 people would move from elsewhere in the business to staff two new units, one responsible for the design and development of services and the other to handle their deployment and operation.

The company said the structure benefited customers by bringing them new services quicker, while ensuring that BT is able to accelerate its development as a networked IT services company by delivering products over broadband.

Andy Green, who is presently chief executive of BT Global Services, will lead the two business units that will design and operate services to meet the needs of BT’s trading divisions, such as the group’s core BT Retail arm.

Group chief executive Ben Verwaayen said: “This is the second phase of BT’s transformation. The first phase saw BT shift its focus from narrowband to broadband. This next stage is equally important. It will see BT advance from a 20th century hardware-based company to a 21st century software-based service company.”

New wave revenues, such as broadband and corporate IT services, now account for more than a third of group’s revenues, offsetting sales declines in BT’s traditional fixed-line business.

In the year to March 2006, BT recorded revenues of £19.1bn (€28bn) with profits before tax of £2.04bn (€3bn).