BT 2014 Annual Report Download - page 39

36 The Strategic Report
Delivering our strategy
Broadband and internet
We provide a range of internet access options including BT Business
Broadband over copper, BT Innity for business (over FTTC and FTTP) and
BTnet dedicated internet access. We also sell email and hosted Microsoft
collaboration services, and web-hosting.
Networking services
Our voice and data networking services support customers who need
to connect dierent sites. Products include Ethernet, IP irtual Private
Network services (which connect sites using IP connections), SIP
trunking (which transports voice calls over IP networks), leased lines,
cabling infrastructure and local area networking solutions.
IT services
BT iNet and BT Engage IT sell cloud and data centre services, unied
communications, security solutions, end-user support services,
hardware, software and consultancy services.
BT Business Direct sells hardware and software from a wide range
of suppliers.
BT Expedite provides the retail sector with store point of sale systems,
back-oce applications, e-commerce platforms and software.
BT Tikit combines its specialist legal and accountancy software products
with technologies from multiple partners to oer fully-integrated solutions.
Mobility
We sell mobile voice and data services through a mobile virtual network
operator (MNO) agreement. We oer a range of handsets and tablets
and a choice of taris to suit dierent customer segments.
We are developing a new range of mobile services which will use our
4G mobile spectrum.
Conferencing
BT MeetMe is our standard audio conferencing service. This is now
available with Dolby oice for higher quality sound and a better user
experience. We also oer premium audio conferencing services hosted
by a conference call coordinator.
We sell video conferencing equipment and services, ranging from
desktop video to large telepresence solutions. We oer Cisco Webex
web conferencing and video web-streaming.
Performance in the year
We have increased EBITDA for the second year running by maintaining
our focus on cost transformation. Underlying revenue excluding transit
was down 1% due to declines in line and call volumes. We have improved
key metrics in customer service delivery and made it easier for our
customers to contact us.
Key facts:
EBITDA up 5%Order book up 3% to £2bn
Operating performance
Our order intake grew 3% to £2bn. We have achieved a number of
customer wins and re-signs this year including
UK SME Crown Estates
UK Corporate
(including IT Services)
Adecco, EMR, Oxfam
BT Fleet The Post Oce, Wales  West Utilities
BT Redcare Center Parcs
BT Ireland Ardagh Group, NI Water
BT Conferencing Communicloud, Plantronics
Inclusive call packages have proved popular this year and helped us
win customers. Business lines reduced 8%, which was higher than last
year as more customers migrated to oIP. This has been partly oset by
growth in our own oIP base, which is up 12%.
Our mobile customer base has decreased 3% this year. It has increased
4% in our UK SME channel but fallen in UK Corporate, where we have
experienced strong competition. We have agreed a new MNO deal
with EE which will give us greater exibility to launch competitive
propositions next year.
BT Expedite won the 2013 Retail Week award for EPOS (Electronic
Point of Sale) Initiative of the Year. BT Fleet won four awards, including one
for best use of technology for reducing fuel consumption and emissions.
BT Redcare expanded its re and security services into the Republic of
Ireland, gaining over 950 customers this year.
BT Directories became the UKs only 999 call handling agency on behalf
of all xed and mobile communications providers, following the seamless
migration of three other service providers trac to BT.
BT Ireland has continued its bre broadband rollout across Northern
Ireland. It has been awarded a further £24.5m of funding (announced
by the Department of Enterprise, Trade and Investment in February) to
extend our reach even further. This investment will deliver faster internet
speeds to over 45,000 of the regions most remote rural homes and
business premises by December 2015.
BT Conferencing has grown audio and web minutes but average unit
prices have declined. In video conferencing, we are focusing on providing
services to support the use of mobile devices and tablets, as the market
for hardware and telepresence rooms has declined.
Customer service delivery
Despite the challenges from the extreme weather conditions, we have
made progress in a number of areas of customer service. BT Business
RFT improved 1.5% in 201314. The increase this year is largely due to
improved repair times and shorterlead times for provision, together with
improved service levels inour contactcentres.
The number of calls to our service desks is down 2%. Complaints are
down 16%. Customer satisfaction with our advisors has increased two
percentage points. Our transactional net promoter score (measured
afterinteractions with customers) has increased eight percentage points
and the average time to answer calls to our service desks is down 41%
(a68 second reduction).