Feeds

BT yet to feel impact of the 'Carphone effect'

Latest figures show traditional business hurting

Eight steps to building an HP BladeSystem

BT has seen "no impact" on its business following the much-hyped launch of Carphone Warehouse's "free broadband forever" product.

A month ago Carphone confirmed the details of its new bundled phone, broadband and line rental service that at £20.99 a month all-in, was half the price of its nearest rival.

But the UK's dominant fixed line telco insists that it "hasn't seen any noticeable effect on [its] figures" since Carphone's aggressive price announcement. Asked whether BT was likely to follow suit, especially with rumours circulting that Wanadoo is to unveil an equally competitive deal when it rebrands to Orange over the next two weeks, a spokesman told us that BT "offers more than just a cheap price".

The comments come as BT revealed that it had just over eight million wholesale broadband lines including 365,000 LLU lines - up 2.9m over the last year.

The number of retail broadband connections were also up to almost 2.6m with the telco currently accounting for three in ten of all new wholesale DSL and LLU connections.

But while broadband and other "new wave" revenues continue to grow BT acknowledged that its core revenues are still taking a hammering. New wave revenues, including broadband and ICT, rolled in at £6.3bn for the year ending March - 38 per cent higher than last year, which helped to offset the 5 per cent decline in traditional phone revenues.

Overall, total revenues for the group were up 6 per cent on the year to £19.5bn while profit before tax and specific items was £2.2bn - up 5 per cent on last year thanks to lower finance costs and an increased share of profits from JVs.

BT chief exec Ben Verwaayen said today's figures showed that the telco had taken massive strides since he joined the company and that the firm was "firing on all cylinders".

"This quarter's results are a terrific set of numbers," said Verwaayen. "These results provide further evidence that our strategy of embracing change is working. BT has changed very significantly from four years ago, and the transformation is accelerating." ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.