BT 2013 Annual Report Download - page 37

Business 35
Business
Wholesale Line Rental (WLR)
WLR lets CPs offer own-branded phone services (with their own pricing
and billing) using our equipment and network. They pay to use the
copper line between our exchanges and customer premises but can
avoid investing in extra network equipment or infrastructure.
Local Loop Unbundling (LLU)
LLU allows CPs to offer DSL-broadband services by installing their own
equipment in our exchanges and renting the copper line. CPs can use
our shared metallic path facility (SMPF) product to offer broadband
over a WLR line or our metallic path facility (MPF) product to offer both
phone and broadband services using their own equipment.
Ethernet
Our Ethernet products offer dedicated, symmetric, fibre-connectivity.
CPs use them in their own networks and to provide high-quality, high-
bandwidth services to businesses and the public sector.
You can read more about these services at
www.openreach.co.uk
BT Technology, Service & Operations
During the year we brought together BT Innovate & Design and BT
Operate, our two internal service units, to form BT Technology, Service
&Operations (BT TSO). There were around 17,000 people in BT TSO at
31March 2013, supporting our customer-facing lines of business.
We created it to simplify the way we work, help us further transform
our cost base and speed up and improve delivery to BT customers. It is a
simpler organisation with more efficient processes andfewer hand-offs.
This means our design and development teams can react more quickly to
operational changes and events.
Products and services
BT TSO is responsible for the whole lifecycle of our global networks and
systems – from innovation, design, test and build through to operational
management. We manage BT’s voice, data and TV networks and IT
applications which make up the core infrastructure for BT’s products and
services. Our people also design and deliver the networks and platforms
which are used by our customer-facing lines of business, and the large-
scale global managed network services which are sold to customers in
the UK and internationally.
We manage and deliver BT’s long-term technology strategy and research
and innovation programmes, including managing BT’s worldwide patent
portfolio (see page 21).
We are also responsible for managing the group’s energy consumption
and for putting strategies in place to cut our future carbon footprint.
Reducing our energy use
In the UK, we spent £274m on energy this year. Even though business
volumes have increased, we have achieved our fourth consecutive year
of worldwide energy reduction, using 3.3% less energy this year against
our target of 1.5%. The energy saving programmes we ran in 2012/13
are expected to generate £33m in annualised cost benefits.
2009
2,500
2,450
2,400
2,550
2,600
2,900
2,850
2,750
2,800
2,700
2,650
2013201220112010
Gwh
2,861
2,769
2,817
2,575
2,665
BT’s worldwide energy use
Year ended 31 March
Climate stabilising intensity
We track how we are doing on climate change with a climate stabilising
intensity performance indicator.
We want to cut BT’s CO2e intensity by 80% by December 2020
(compared with 1996/97). This year we achieved a 77% cumulative
reduction.
All figures restated based on 2012 DEFRA reporting guidelines
Carbon intensity = CO2e/value added (= EBITDA + employee costs)
1997 (Base)
400
200
0
600
800
2,000
1,800
1,400
1,600
1,200
1,000
2013201220112010
Net emissions Carbon intensity (tonnes
per £m value added)
Tonnes
(000)
BT’s worldwide CO2e emissions
Year ended 31 March
//
1,664
778
793
436
758
177
75
69
72
40
Security
Our physical and cyber security operations were previously managed
by BT Operate. We now manage these through a separate security
enterprise, BT Security, which is supported by BT TSO engineers. This
business is in charge of protecting our own and customers’ data and
assets. We believe that it differentiates the services we can offer and
willhelp us win in the market.