Feeds

BT confirms customer exodus

'New wave' compensates for core revenue shortfall

  • alert
  • submit to reddit

Boost IT visibility and business value

BT is losing between 50,000 and 100,000 residential customers a month, the UK's dominant fixed-line telco finally confirmed today. This loss of customers even takes into account all those punters who return to the company each month - something BT is keen to brag about in its ads.

This erosion in BT's core customer base, as well as increased competition and regulatory pressure, is being blamed for a five per cent decline in BT's traditional voice-related turnover for the year. But while BT's traditional business continues to suffer, the company's "new wave" technologies - ICT, broadband, mobility and managed services - are helping to fill the void.

New wave turnover was up 30 per cent on the year to £3.39bn and now accounts for 18 per cent of the group's turnover for the year compared to 14 per cent last year. Publishing its prelims for the year, the UK's dominant fixed line telco reported that total turnover dipped one per cent £18.5bn. Pre-tax profit increased swelled 10 per cent to £2bn as the company benefited from improved operating results of the group and lower net interest costs.

By 14 May, BT had 2.45m wholesale broadband lines, an increase of 162 per cent on the number of connections 12 months ago, with around 35,000 new DSL connection being added each week. The ever-increasing number of broadband users in the UK helped broadband revenues climb by 107 per cent on the year to £491m.

Said BT chief exec, Ben Verwaayen: "The results from our new wave businesses show our strategy is working. Our transformation of the business will continue to accelerate. We expect the environment to remain challenging but we will also increase our investment to build on the significant progress already achieved. Our actions and future plans give us confidence in our strategy for the future."

By mid morning shares in BT were up 5.25p (3 per cent) at 178.75p, ®

Related stories

UK DSL coverage reaches 90%
BT, Voda confirm mobile link-up
BT loses 150,000 customers a month - report
BT to slash LLU costs
BT wins NI blanket broadband deal

The essential guide to IT transformation

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Trans-Pacific: Google spaffs cash on FAST undersea packet-flinging
One of 6 backers for new 60 Tbps cable to hook US to Japan
Tech city types developing 'Google Glass for the blind' app
An app and service where other people 'see' for you
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.