Feeds

BT's new broom turns out to be carving knife: Retail wing sliced in half

Two-headed beast sent into 'four-way tussle with Sky, Virgin and TalkTalk'

  • alert
  • submit to reddit

Boost IT visibility and business value

BT's soon-to-be new boss Gavin Patterson made the first big management decision of his reign today - and split the telecom giant's retail division into two distinct wings: consumer and business.

Patterson, who will formally take over from outgoing chief exec Ian Livingston as BT's chief exec in September, hopes the slice'n'dice will help his biz outplay its rivals.

"It is time however for the business to be split in two given the intensely competitive nature of the consumer market and our strong ambitions in the business space," Patterson said.

The split will take effect just as Patterson, who currently heads up the retail operation, settles into his new job.

The two separate divisions will be labelled "Consumer" and "Business". John Petter, who is the managing director of the consumer unit within retail, will run the consumer biz, while business unit MD Graham Sutherland will become CEO of the BT business wing.

BT added that the decision to break up its retail division, which last week reported flat quarterly revenue growth, will help it "better serve its customers and focus even more on delivering its strategic priorities".

The company is betting big on television with its sports channel launching later this week, which will compete with BSkyB's offerings. It explained:

BT Retail currently comprises four customer-facing units. These are BT Consumer, BT Business (which supplies SMEs), BT Enterprises (which consists of BT Conferencing, BT Payphones, BT Directories, BT Fleet, BT Wi-fi, BT Redcare, BT Expedite and Fresca, and BT Tikit) and BT Ireland.

BT Enterprises and BT Ireland will merge with BT Business to form the new BT Business division while BT Wi-fi and the consumer part of BT Ireland will transfer to BT Consumer.

Petter said the one-time national telco was "in a four-way tussle with Sky, Virgin and TalkTalk for broadband customers and we are at the start of an exciting journey with BT Sport".

He added that BT was planning to "up the ante in the coming years".

It will be interesting to see if BT undergoes more management rejigs once Patterson becomes chief. Its wholesale division, for example, has been troubled for many quarters now. ®

Boost IT visibility and business value

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Speak your brains on SIGNAL-FREE mobile comms firm here
Is goTenna tech a goer? Time to grill CEO, CTO
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.