Feeds

BT punters flee

100,000 a month wave bye bye

  • alert
  • submit to reddit

Boost IT visibility and business value

One hundred thousand people a month are ditching BT and opting for alternative telephone providers as the UK's dominant fixed line telco admitted that the business environment "remained challenging". BT's share of home phone users fell by 1.5 per cent to 66 per cent in the three months to the end of June, as the former monopoly continued to lose ground to rivals.

Of course, BT is happy to point out that 100,000 punters a month are returning to the telco. It's less keen to let on that 200,000 customers a month are turning their backs.

Increased competition in its traditional business — as well as a massive jump in redundancy costs - led to a fall in pre-tax profit (before goodwill amortisation and exceptional items) as its slipped 13 per cent to £434m from £501m. Turnover was a smidgen lower at £4.57bn.

WBT's traditional business continues to get a beating as punters turn to alternative providers such as Tele2, One.Tel and the Carphone Warehouse. But it continues to make advances in "New Wave" business areas such as broadband and ICT, which saw turnover rise 32 per cent to £936m.

As of the end of June, there were 2.7m ADSL lines in the UK, an increase of 154 per cent compared to the same time last year, with the number of new broadband punters increasing by 36,000 a week. But even as more and more punters turn to broadband, it's not all good news for BT. For while BT Retail's share of ADSL punters hit 1.1m, it's share of new sign-ups slipped to just three in ten.

Confirmation of this from BT's own figures confirms a recent analyst report which highlighted that BT Retail had lost broadband market share during every quarter for the last two years.

Despite the continuing pressures on BT, the company remains upbeat.

Said chief exec, Ben Verwaayen: "The transformation of our business continues at pace. This is the second consecutive quarter of underlying growth in turnover. New wave turnover, including ICT, broadband, mobility and managed services grew by 32 per cent to £936m. New wave businesses generated over 20 per cent of group turnover in the quarter. This strong growth in new wave has offset the decline in turnover from the traditional business and these results reflect a continuation of recent trends."

By mid morning shares in BT had fallen 5p (2.57 per cent) to 189.75p. ®

Related stories

One.Tel touts cheap biz mobile calls
BT to trial pay-as-you-go broadband
BT Retail cuts cost of DSL, caps users
BT's DSL market share carries on falling

Secure remote control for conventional and virtual desktops

More from The Register

next story
Déjà vu: Virgin Media jacks up broadband prices
Screw copper phone lines, we're UNIQUE, bleats telco
NBN Co claims 96 mbps download speeds for FTTN trial
Umina trial also delivers 30 mbps uploads, but exact rig used not revealed
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
EE: STILL Blighty's best mobe network, says 'Frappucino' Moore
Fresh round of network stats fisticuffs possibly on the cards here
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
EE network whacked by 'PDP authentication failure' blunder
Carrier is 'aware' of cockup, working on a fix NOW
ROAD TRIP! An FCC road trip – Leahy demands net neutrality debate across US
You crashed watchdog's site, now time to crash its ears
prev story

Whitepapers

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.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?