BT 2000 Annual Report Download - page 100

33. Segmental analysis
The following information is provided as required by the US accounting standard, SFAS No. 131, on disclosures about
segments of an enterprise. The information presented is required to be based on the segmental operating results regularly
reviewed by the group's chief operating decision maker (the CEO).
The group is a unitary business providing an integrated range of services and has been managed on this basis. For
the purposes of exercising day-to-day managerial and budgetary control, the business is divided internally into divisions
but these divisions are not self-standing businesses. Control is exercised by comparing performance against budgets agreed
in advance. The CEO reviews the turnover and operating results for each main division. The group's capital expenditure
programmes are largely centrally driven and are not necessarily linked to individual divisions. For this reason it is group
policy not to allocate certain assets to individual divisions, although depreciation charges are allocated.
Since September 1997, the group has been organised into two main divisions BT UK and BT Worldwide (formerly
named BT Global and previously Global Communications) in order to re£ect the group's two distinctive geographical
operating regions and customer groups. Substantially all of the group's operations are within the UK and, of those, the
majority are currently managed by BT UK. During the year ended 31 March 2000 and progressively from 1 October 1998,
BT UK was sub-divided into ten separate business units, the principal ¢ve of which were Markets, Enterprises, Networks
and Systems, Mobility, and Products and Solutions. Markets was the division providing the customer facing links for the
group's ¢xed network services and Enterprises managed the Yellow Pages classi¢ed directory business and the group's
wholesale interconnect business with other operators. Networks and Systems provided the UK ¢xed network as a platform
for these services. Mobility provided the group's UK mobile communication services, principally via BT Cellnet. Products
and Solutions managed the group's outsourcing services.
Prior to 30 September 1998, the Consumer Division within BT UK provided ¢xed network telecommunication services
for residential customers, principally the provision of exchange lines to customers' homes and calls to and from those
homes. The Business Division provided ¢xed network services to businesses and organisations other than multinational
companies, principally the provision of exchange lines, private services and calls to and from the places of business and
customer premises equipment. The Networks and Systems Division built, maintained and operated the company's ¢xed
telecommunications network in the UK. Mobile Communications provided the group's UK mobile communications services.
Other units within BT UK provided the group's classi¢ed advertising directories and outsourcing services.
BT Worldwide provided telecommunication services to multinational companies, including those based in the UK, and
international incoming, outgoing and transit telecommunication services. It was responsible for managing Concert
Communications and the group's other non-UK operations, and investments in non-UK joint ventures and associates.
The following information for the years ended 31 March 1998 and 1999 is based on the divisional organisation of the
group at 1 April 1998, described above. As already noted, the BT UK organisation was changed progressively from
1 October 1998 into a substantially di¡erent form. Financial information in its new form was made available to the senior
management of the group with respect to accounting periods from 1 April 1999.
It has not been practicable to restate the segment information for the years ended 31 March 1999 and 1998 onto the
segment basis presented for the year ended 31 March 2000.
In April 2000, the group announced a restructuring whereby the group and its ventures would be managed in four
global businesses and two UK operating divisions, together with the Concert global venture. The four global businesses
are: Ignite responsible for broadband and internet networks; BTopenworld covering the consumer market for internet
products around the world; BT Wireless covering the group's global interests in mobile communications; and Yell,
responsible for the classi¢ed directories and associated e-commerce businesses. The two UK operating divisions will be a
wholesale division covering the UK ¢xed network and a retail division responsible for marketing UK ¢xed-network products.
Annual report and Form 20-F 99