BT 2015 Annual Report Download - page 73

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Overview
The Strategic Report
Purpose and strategy Delivering our strategy 0ur lines of business
Group performance Governance Financial statements Additional information
Openreach
penreach provides the vital infrastructure that is the
foundation of the UKs vibrant internet econo. e are
responsible for providin services over the local loop or
local access networ soeties referred to as the last
ile. his consists of the copper and fibre connections
between our echanes and hoes and businesses.
penreach is firl focused on buildin ritains connected future
plain our part in creatin the infrastructure needed to underpin
rowth. urin the ear we too our fibre broadband networ coverae
beond  of UK preises  over a.
e have etended fibre coverae to rural counities. e have
been worin in partnership and co-investin with the overnents
roadband eliver UK UK prorae. ein part of a larer roup
ives penreach the confidence in future deand to ae lon-ter
investents.
ccordin to uropean oission data the UK has the hihest
coverae of net eneration access  broadband of the five larest
countries in estern urope. overae of  includin irin edias
networ is above the uropean Union averae of .
UK
Germany
France
Italy
NGA broadband coverage
(% of households)
Source: European Commission Digital Agenda Scoreboard.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
20122011 2013
EU
Spain
e eep the UK connected throuh a networ which lins ore than
00 echanes around 9000 street cabinets priar connection
points or s and around . distribution points. ur networ is
used b nearl 0 of UK hoes and businesses.
FTTC PCP
DP
DP
Openreach local access network
Exchange
Over 5,500
exchanges c98,000 PCPs c4.7m DPs
Fibre FTTC Fibre-to-the-cabinet
PCP Primary connection point
DP Distribution point
Copper
a This includes around 790,000 premises in Northern Ireland, provided by BT Ireland.
he  reatl reduced the price that s can chare each other to
deliver calls ade to their fied-line custoers. his eant we had to
chare less for irect onveance which as eplained earlier delivers
other s calls to s own custoers.
roadband revenue declined 1 011 1 as the aor retail
broadband providers continued to ae ore use of their own networs
instead of ours.
anaed solutions revenue fell 11 011  rowth as the
ost ce copleted the iration of services o our white-labelled
broadband calls and lines solution. nd obile networ operators
bouht fewer new  circuits eneratin lower connection revenue.
anaed solutions revenue accounted for  of total revenue in line
with last ear.
e continued to see stron rowth in  services with revenue up .
 and thernet showed double-diit rowth followin continued
investent in these epandin arets. e epect our new osted
ounications ervices to contribute ood rowth in the ear ahead.
 declined 9 011 1 driven b lower revenue includin
the ipact of the  and a chanin product i. hese eects were
partl oset b our cost transforation activities and the ladder pricin
revenue reconised in the ear. epreciation and aortisation was down
9 011  and operatin profit fell 9 011 1.
apital ependiture was 1 below last ear 011  hiher
partl driven b lower spend on our holesale roadband onnect
rollout prorae.
peratin cash ow decreased  011  increase larel
driven b worin capital oveents as last ear benefited fro the
tiin of custoer receipts.
Key priorities
ur future plans include
 launchin new connectivit products usin optical fibre and
sall-celltechnoloies
 further etendin our thernet and holesale roadband onnect
coverae
 oerin new access options for our obile thernet ccess ervice
 addin new features to our osted ounications ervices
 launchin new  features and
 addin new capabilities to usiness one.