Feeds

BT Retail saves £850 million

Bonfield scores on the rebound

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

BT investors have given a cool reception to news that the telco's customer-facing retail division is to cut running costs by a massive £850 million.

In an interview with the Times BT Retail's CE, Pierre Danon, said the cuts were three times higher than expected.

Danon also said that BT Retail would work hard to improve its customer satisfaction which has taken a beating recently.

Despite the reassurances, BT's share price barely flickered on what should have been such confidence-boosting news.

By mid morning BT's share price was up just 2.25p at 424.25p.

Danon told the newspaper that cost savings would save £240 million this year and a further £610 million during an unspecified time in the future.

Savings would come from eradicating the "tons of inefficiencies within BT". No job cuts are planned as part of the efficiency savings, a BT spokesman confirmed.

Danon said that he was also aware of "BT's tarnished image with consumers" but insisted that BT was on a par with other telcos and cable companies.

"Today we deliver customer satisfaction, both in business and in personal, exactly at parity with the NTL, Energis and Cable & Wirelesses of this world - no better and no worse," he said.

"We should deliver much better. My goal is that we want to be better than the competition in two years. In two years, either I am better than the cable companies or I quit," he said.

Today's interview appears to mark the beginning of a charm offensive by BT with the company unveiling a new ad campaign tomorrow.

Having sold off vast chunks of the company and embarked on a £5.9 billion rights issue all in the aid of cutting its debt mountain, the company is now seeking to improve its standing and image.

Having been battered for so long it no doubt feels it needs to drum up some confidence among investors and the business community. By 'eck - that'll be some task. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.