BT 2012 Annual Report Download - page 32

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Strategy
Networks and platforms
Our infrastructure is made up of networks and platforms which in
combination connect our customers and support the services they use.
As such they are a vital resource and their reliability and security are
critical to our customers and to delivering our strategy.
Networks
Our UK fixed-line communications network is one of our most valuable
resources. Our super-fast fibre-based broadband network is key to our
future and our competitive position in the UK. Around the world, our
networks consist of assets that we own and those that are leased from
suppliers to give us global reach.
We have established a global MPLS network which is designed to carry
different types of network services over a common infrastructure.
We offer two types of virtual private network (VPN) service: IPVPN
and Ethernet VPN. These provide our customers with secure network
capabilities in many countries across the world.
Our IPVPN service is available in 197 countries and territories and
can be accessed through: global points of presence (GPoP) and direct
leased lines in 118 countries; city fibre networks in 24 European cities
and two Latin American cities; Ethernet access in 42 countries; DSL in
21 countries; network-to-network interfaces (NNI) in 31 countries;
internet-based access in 178 countries, and satellite access in over 60
additional countries.
BT-owned physical GPoP are MPLS points of access which house an IP
node. NNI are the interface between our network and the network of a
third party. They allow us to use another provider's network to extend
our footprint in geographies where we have fewer of our own GPoP.
Satellite links provides access to the BT network in remote locations,
beyond the reach of traditional fixed-line solutions.
Our Ethernet VPN service is available in 28 countries using Ethernet
access. This number is growing through the global expansion
investments we have made over the past year.
Platforms
Our platforms are the processes and technology that deliver products
and services over our networks. For example, the billing and payments
platform comprises the systems and processes that calculate charges,
produce bills and collect payments from our customers. The number
of platforms we own has grown over time through a combination
of acquisition, outsourcing contracts and technology upgrades. We
continue to improve platforms by modernising and rationalising them,
so reducing complexity while improving reliability, flexibility and cost.
We have reduced the number of IT applications by 11% over the year,
which has helped BTID and BTO to underpin significant cost reduction.
As our business develops and grows, the skills that we need may
change. We provide opportunities to re-skill and look for alternative
roles for individuals whose skills or jobs are no longer required. Since
we started these arrangements six years ago, over 19,000 people have
successfully found alternative employment within BT with 4,100 of
these during the last year. Our ability to help find alternative roles has
been enhanced by an ongoing review of work that has previously been
resourced externally and bringing this back into BT where appropriate.
Over the past two years around 4,000 jobs have been insourced from
suppliers and overseas.
Employee representation
We have a record of stable industrial relations and constructive
relationships with the recognised unions in the UK and with works
councils elsewhere in Europe. In the UK we recognise two main trade
unions – the Communication Workers Union (CWU), which represents
people in engineering, administrative and clerical positions, and
Prospect, which represents managerial and professional employees. We
deal with unions around the world and also operate a pan-European
works council, the BT European Consultation Committee.
Pay and benefits
We expect our people to work hard and in return we reward them fairly.
In 2012 we implemented a 3% pay increase in the UK as well as paying
all team members a £250 bonus. For our engineers and support people
this is an across-the-board arrangement and for our managers there is
performance-related differentiation. The same principles of fair pay for the
work done are similarly applied in all other countries in which we operate.
Our managers also receive bonuses linked to the success of the business
and their personal contribution to it. Our most senior managers are
also eligible for long-term incentives, but again, payment is related
to business success measured by our corporate performance over
a three-year period. Different arrangements apply to the most
senior managers in Openreach but these are also entirely related to
businessperformance.
We also provide savings-related share option plans in over 25 countries.
Under the BT employee share investment plan, we let employees in the
UK participate in a tax and national insurance-efficient share purchase
scheme. We are pleased that more than 60% of our people participate
in one or more of these share plans.
We also provide pension and retirement benefits for employees as well
as statutory retirement arrangements.
For details of the largest of these plans, the BT Pension
Scheme, a defined benefit plan in the UK, see page 58
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