BT 2015 Annual Report Download - page 70

68 BT Group plc
Annual Report 2015
BT Wholesale
 holesale provides services in reat ritain to ore
than 100 s. ach one has its own abitions strate
and strenths. ur role is to help the achieve their oals
b oerin the innovative reliable and cost-eective
products and services that copleent their own
capabilities. his eans that we can share in their success.
e are oranised around our ain custoer roups
Mobile network
VHUYLFH{SURYLGHUV
Fixed network
VHUYLFH{SURYLGHUV
nternational call providers
edia  roadcast
etwor operators
Resellers
e also have teas that develop and run our products and provide
custoer service.
utside reat ritain  serves s in orthern reland and the epublic
of reland throuh  reland and elsewhere throuh  lobal ervices.
 is uropes larest wholesale telecos provider.
Revenue market share of European wholesale telecoms providers
2013: $46.5bn market
16%
BT
7%
Telefónica
14%
Orange
46%
Other
6%
Telecom Italia
Source: European Wholesale Market Share, 2012/13: The Big Picture, Ovum, March 2015.
11%
Deutsche Telekom
Markets and customers
 holesale is reat ritains leadin provider of wholesale
telecounications services. e are reconised for our innovation
as well as for our scale. or eaple accordin to urrent nalsis
eceber 01  holesale is aintainin a fir rip on its
leadership status in the UK wholesale seent with aressive
developent of new services and a stron  stor.
ur custoers include broadband and  providers such as  alal
and irin edia the obile operators   hree and odafone
andother service providers such as ais roup aa eleco and
K roup. aor overseas operators use our services to provide
solutions in reat ritain too.
ustoers of our edia  roadcast unit which operates a specialist
fibre and satellite edia networ worldwide include the   and
tar .
e operate in a dnaic and challenin aret. he e aret trends
are as follows
 The market for wholesale services is shrinking. his is because
soe s are buildin ore of their own networ infrastructure
or are sharin what the alread have. or eaple  and
alal continue to use local loop unbundlin buin directl fro
penreach to etend their networs. nd odafone is epandin its
own national networ. he ipact of this trend is anified where
operators decide as irin edia did this ear onl to serve customers
within their own networ footprint. his eans s need less help
fro us to support their custoers.
 The market remains very competitive. alal irin edia and
odafone are our biest copetitors for connectivit products.
aa eleco copetes with us for  voice services. hile our
custoers value the perforance and reliabilit we can provide
wecontinue to see price pressure in the thernet aret in particular.
eepect this trend to continue.
 But the market for next-generation services is expanding. thernet
is now the de facto choice for networs that serve businesses and
deand is rowin. nd the aret for hosted  voice services rew
b ore than 0 this ear. his is a oun and ecitin area and one
which we epect to row stronl net ear.
eulation is an iportant part of our environent. round two-
thirds of our revenue coes fro products that are reulated or have
substantial reulated coponents. eulator decisions can have a
aor ipact on both our short-ter tradin perforance and our
loner-ter business odel. s we eplain below fcos arrowband
aret eview had a sinificant eect on our financial results this ear.
Products and services
 usin our portfolio s can serve their custoers without havin to
invest in their own assets and capabilities. e oer connectivit voice
and hosted counications services and a rane of bespoe anaed
solutions. e also oer industr-specific services to edia copanies
and broadcasters.
Broadband
e provide s with broadband connections between their networ and
their custoers. ith holesale roadband onnect s can serve 9
of all preises with copper-based broadband and ore than three-
uarters of preises with fibre broadband. ur older broadband networ
brins our total copper-based coverae to over 99.
or s without an networ our anaed roadband option provides
everthin the need to oer a broadband service includin internet
access and  addressin.
thernet
e suppl thernet connections between s own networs and their
custoers. or eaple this helps aor overseas operators to provide
services wherever the need to.
e can provide holesale thernet to 1 of business preises over
eistin copper circuits 011  and to over 99 with fibre.
n increasin nuber of the UKs aor data centres and telehouses are
also on our networ.
ustoers can choose thernet speeds ranin fro bps to 10bps.
hose needin hiher bandwidths are now able to order our holesale
ptical product which oers speeds of 10bps to 100bps and is due
to be full launched net ear.
e suppl a anaed thernet ccess ervice  specificall for
obile operators to connect their cell sites to their core networs.
thernet services are raduall replacin artial rivate ircuits a leac
connectivit service which we also oer.