BT 2001 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2001 BT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

Chief Executive’s statement
06 BT Annual report and Form 20-F
Now, we are moving swiftly to take
further action that will transform BT.
Action that:
&addresses the debt built up through
pursuing our strategy;
&accepts the realities of the market;
&continues the process of separation by
lines of business;
&creates two substantial listed
companies; and
&keeps both companies focused on
growth opportunities.
In April 2000, we began a radical
restructuring of BT. We grouped some of
our activities by market sector, rather
than by geography, to create BT
Wireless, BT Ignite, BTopenworld and
Yell, four businesses with potential for
high growth.
In October 2000, we split
management of our UK communications
services between BT Retail and BT
Wholesale.
And, in November 2000, we
announced our intention of seeking
separate listings via initial public
o¡erings for BT Wireless and Yell. We
also stated our target of reducing our net
debt by at least »10 billion by the end of
2001.
Since then, stock market volatility
throughout the world, particularly in the
telecommunications sector, has led us to
reconsider whether selling o¡ equity in
parts of the business via the IPO route
represents the best way ahead for the
company.
As a result, we announced in May
our intention to demerge BT Wireless
and so create two substantial companies,
BT Wireless and Future BT.
BT Wireless
We plan for BT Wireless to include all of
our fully-owned wireless assets in the
UK and Europe, and Genie, one of
Europe’s leading mobile internet portals.
It should be a high-growth business,
strongly positioned to develop third-
generation services by taking advantage
of its leadership in mobile data. It will be
an independent wireless operator in a
market which is consolidating.
Future BT
Future BT will combine four separately
managed businesses, BT Retail, BT
Wholesale, BTopenworld and BT Ignite
to form a focused European network and
retailgroupconcentratingonvoiceand
data services. Its aim is to create value
based on service excellence, its brand
leadership, its large scale networks and
its existing customer base. It will also
develop and market new, higher value
broadband and internet products and
services.
BT has achieved much operationally over the past
year. We have continued to introduce innovative
products and services, such as Genie, our mobile
internet portal; we have continued to develop our
high-speed broadband network; and we have
continued to compete vigorously.