Feeds

BT Retail saves £850 million

Bonfield scores on the rebound

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

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. ®

Intelligent flash storage arrays

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
What a Mesa: Apple vows to re-use titsup GT sapphire glass plant
Commits to American manufacturing ... of secret tech
prev story

Whitepapers

Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.