BT 2007 Annual Report Download - page 13

Date Contract
December
2006
We signed a £322 million deal with Liverpool City Council
for a further five years to 2017. We will continue to
invest in new technology and new ways of working to
deliver additional benefits across a range of council
services. This new deal increases the lifetime value of the
contract to more than £825 million.
February
2007
We announced that we were signing a strategic
agreement with Credit Suisse, worth over £575 million,
to provide a broad package of mobile and internet
technologies and advanced connectivity services which
will enhance its operating efficiency as an integrated
global bank. The contract is initially for five years and will
be delivered in partnership with Swisscom to address
requirements across Credit Suisse’s enterprise and financial
trading environments, with an additional focus on jointly
creating service innovations.
March
2007
With our partner Liberata, we signed a deal to become
the private sector strategic partner to Sandwell
Metropolitan Borough Council in the West Midlands.
BT/Liberata will build a new regional business centre in
Sandwell to run a range of IT and core business services
for the council, attract new business to the borough and
create jobs. The contract is valued at almost £300 million
over 15 years.
We also continue to build relationships with key industry
players in order to enhance the abilities of all parties to deliver
networked IT services. Examples of such successes are:
October
2006
Capgemini transferred a substantial portion of its
European Networking Infrastructure Services (NIS)
operation to BT. As part of this, we have taken on
approximately 250 people employed in Europe and are
now responsible for providing NIS services to Capgemini
customers. The deal is for ten years.
November
2006
We were selected as a sub-contractor to Atos Origin to
deliver a managed network service for the Department
for Constitutional Affairs. The contract is worth
£96 million over seven years. As the network services
sub-contractor, we will be responsible for migrating three
existing networks to a single, secure, resilient MPLS
network.
February
2007
HP and BT announced that they had signed seven-year
outsourcing contracts with Anglo American worth in total
around US$450 million. Under the contracts, BT and HP
will jointly manage the company’s global voice services,
data centre operations and end-user workplace
environment. A core part of the agreements is a
transformation programme to create an integrated global
IT infrastructure to support Anglo American’s strategy for
growth.
Networked IT services revenue for BT Global Services for the
2007 financial year was £4,048 million, an 8% increase
compared with the 2006 financial year.
We continue to feature prominently in reviews of business
capabilities. Gartner, for example, publishes a quarterly
assessment of network service providers ranked by their ability
to execute and their completeness of vision. In the latest
Gartner’s assessment (Magic Quadrant Report of Pan-European
Network Service Providers), BT Global Services is ranked top for
both. ‘BT’s broad service portfolio, large presence and range of
engagement models make it a candidate for most types of
organisations with pan-European networking needs.’ According
to specialist researchers, Forrester, ‘There are only a handful of
international network operators that can provide complex ICT
solutions that include global WAN (wide area network) services.
BT stands firmly among them.’
BT Retail
In addition to serving consumer customers in the UK, BT Retail
also has responsibility for:
rsmall and medium-sized businesses in the UK
rBT’s activities in Ireland
ra number of discrete enterprises, such as BT Conferencing, BT
Directories and dabs.com.
Revenue in the 2007 financial year was £8,414 million,
compared with £8,507 million in the 2006 financial year.
Revenue grew year on year in the final two quarters of the
2007 financial year – the first time in four years.
27%
9%
9%
55%
At a time when convergent, new wave products and services
are radically reshaping the communications industry, customers
of all kinds have more choice than ever before. However, more
choice can also mean more complexity and more confusion and,
consequently, the possibility of customers missing out on the
benefits. BT Retail aims to offer customers straightforward and
complete services that compete on value not price, backed by
levels of customer service that differentiate us from our
competitors. And this applies as much to traditional services such
as telephone calls as it does to new broadband and mobility
services.
Consumer customers
At 31 March 2007, we had more than 16.2 million UK consumer
customers with around 19.3 million residential customer lines
(voice, ISDN (integrated services digital network) and
broadband). In the 2007 financial year, consumer revenue
declined by 3% to £5,124 million, primarily reflecting the impact
of CPS (carrier pre-selection) and WLR (wholesale line rental).
However, the rate of revenue decline has been slowing and
ARPU (average revenue per user) is strong.
Report of the Directors Business review
12 BT Group plc Annual Report & Form 20-F