BT 1998 Annual Report Download - page 5

INTERVIEW WITH CHIEF EXECUTIVE
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with the objectives of achieving sustained growth from
the core telephony business and maximising value
in growth markets. Meanwhile, BT Global, under
Alfred Mockett, is concentrating on investing in, and
developing, new markets around the world. The team
which handles mobility and multimedia opportunities
reports directly into me and provides a strategic focus
on two of the major worldwide opportunities.
Europe is providing many growth opportunities
at the moment – how would you describe BT’s
operations there?
“Fast-moving” is the best description. Europe is a
huge opportunity – a market which has been open
to competition since 1 January 1998. We have joint
ventures operating in every major country and they
have already won 11 licences for fixed or mobile services.
Taken together, our European alliances are expected to
have annual revenues of £2.5 billion this year, a rise of
around 50 per cent. They expect to recruit 4,000 people
in 1998. Our partners are companies with local influence
and established infrastructures. They include financial
services providers, media conglomerates, transport
companies and retailers, and they all supplement BT’s
technology skills and competitive experience with a deep
understanding of their own national markets.
Beyond the UK and Europe, what have been the
other highlights of the year?
First, it’s been another good year for Concert
Communications Services, the joint venture we
have operated with MCI since 1994. Concert leads
the market for global services used by the top
multinationals. It is growing at almost 50 per cent per
year, serves 40 per cent of the Fortune 500 top
companies and was rated number one global outsourcer
in the Yankee Group’s survey of customers. Other
highlights were winning fixed and mobile licences in
Singapore – along with partners, including NTT of Japan;
signing a Memorandum of Understanding to co-operate
with China Telecom; and announcing that we would
be the first European communications company to
contribute to a working group including top IT names
like Compaq and Microsoft to look at setting standards
for new high-speed services.
How do you assess the impact of not merging
with MCI?
I still believe that merging on the terms which we
negotiated would have been a good result for BT and
its shareholders, but we decided not to go ahead at a
price which would have been uneconomic for BT. Had
we chosen to match the rival bid, we believe it would
have been against shareholders’ interests. As it was,
we took action to secure a good return, maintained
our services to US customers through Concert
Communications Services and kept open our options
to pursue new growth opportunities.
So what now in the USA?
We now have two objectives. The first is to make
sure we have the most comprehensive possible
sales, service and support for customers of Concert
Communications Services in the USA. Second – and
this is a separate issue – there may still be investment
opportunities in growth areas of the US domestic
market. It is a valuable market, with over one-third of
the world’s telecoms revenues. We are looking at all
the options but we will only take an opportunity if it
will deliver real value for shareholders.
In overall terms, what’s your vision for BT?
To be a company that delights customers and
shareholders, and is a good place to work. To seize
growth opportunities around the world. To help people
use communications technology to improve their
education, their health, their
business. To enable people to use
communications to expand their
horizons and to get more out of
their lives, as employees, as
consumers and as citizens.
Sir Peter Bonfield CBE
Chief Executive
26 MAY 1998