BT 2008 Annual Report Download - page 21

Wi-Fi in the community
BT Openzone is one of the leading providers of Wi-Fi services in
the UK and Ireland. In 2008, 234 million Openzone minutes
were used – up 85% on 2007.
In October 2007, we launched the world’s first international
Wi-Fi voucher scheme, which means cheaper and more
predictable costs for travellers when abroad. The Openzone 500
vouchers offer Wi-Fi access across roaming partners in the US,
Canada, Brazil, Argentina and Europe and Openzone access to
hotels, airports and other hubs for an all-inclusive rate.
We are also leading the way in building ‘wireless cities’
throughout the UK, in order to ensure that local residents,
businesses, tourists and local government employees are always
best connected.
In Westminster, for example, applications include wireless
CCTV cameras, which are helping combat crime and anti-social
behaviour, as well as assisting with parking enforcement. We are
also working with Westminster Council to provide online
information – from cinema listings to council services – free to
anyone logging on to BT Openzone from within the area.
Wholesale customers
We have two principal groups of wholesale customers –
customers of our wholesale business and Openreach’s customers
– as well as our global carrier customers.
Like the industry it serves, our wholesale business is in
transition. As the industry migrates from traditional to next
generation services and adopts the infrastructure being enabled
by Openreach, so we are establishing BT as a leading provider of
innovative managed network solutions, which will enable our
customers to transform their businesses. Our strategy is to
support them through this transition, generating future growth
from the delivery of long-term managed solutions. These enable
them to avoid the capital and operational risk associated with
upgrading to next generation networks and services. In the
process, we are managing our own transformation from a high-
volume product wholesaler to a next generation communications
product wholesaler and solutions provider.
All of this is being supported by improved service delivery,
transformed propositions and a range of new software-driven
services. In 2008, for example, by focusing on our customers’
overall experience, we improved our ‘right first time’
performance for the provision and repair of our core wholesale
broadband and data connectivity services.
In the UK wholesale market, we provide network services and
managed solutions to over 700 communications companies,
including fixed and mobile network operators, ISPs (internet
service providers) and other service providers. We interconnect
with more than 180 other operators, as well as carrying transit
traffic between telecommunications operators.
In 2008, we maintained our focus on the cost reduction
opportunities that arise as our business changes. We reduced the
cost base of our wholesale business by 13% through headcount
reduction, eliminating duplication, achieving further operational
efficiencies and aligning our resources more effectively with the
evolving needs of our customers.
Managed network services contracts
During 2008, we signed a number of major managed network
services contracts worth a projected total of £1.8 billion over
their lifetimes. These ranged from a comprehensive outsourcing
deal with the Post Office, to providing enhanced connectivity for
other communications providers’ networks:
Date Customer Nature of contract
May 2007 Post Office Four-year outsourcing contract
for provision of wholesale
communications services to
underpin the Post Office’s drive
to become a fully integrated
voice and broadband provider.
July 2007 T-Mobile Five-year contract to link
T-Mobile’s UK base stations to
its network.
September
2007
Orange Provision of wholesale landline
services to Orange customers,
enabling Orange to offer
fixed-line voice services.
December
2007
Virgin Media Five-year, £98 million contract
for provision of voice network
management services.
February
2008
Scottish and
Southern
Energy (SSE)
Supporting SSE’s planned
launch of integrated
communications services to its
8.5 million customers in the
UK.
March 2008 Vodafone Five-year managed access
agreement linking Vodafone’s
UK base stations with its core
infrastructure.
New wholesale products
21CN Ethernet
In January 2008, we started to take orders for 21CN Ethernet, a
next generation wholesale Ethernet service and the first product
to be delivered over the 21CN platform. 21CN Ethernet will offer
up to ten times the bandwidth of the core MPLS network,
delivering high-speed data connectivity to corporate customers
and mobile operators. Subsequent upgrades will enhance the
service’s functionality and footprint. We aim to have installed
around 600 nodes by Spring 2009, giving BT the UK’s largest
Ethernet footprint.
Report of the Directors Business review
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Openzone minutes
used in 2008 – up 85%
234m
20 BT Group plc Annual Report & Form 20-F