BT 2016 Annual Report Download - page 76

80 BT Group plc
Annual Report 2016
BT Wholesale
We provide network products and services to
Communications Providers (CPs) operating
in Great Britain. We also oer services for media
companies and broadcasters.
We do this by combining BT’s core network and IT platforms with
Openreach’s access products. We add our own expertise in
designing, building and supporting new products and bespoke
solutions. We can then oer a range of services that complement our
customers’ own capabilities. This means we can share in their success.
We’re structured around our customers: mobile and fixed network
operators; resellers; and media organisations and broadcasters. Our
largest customers are supported by dedicated client teams, while
others are served by a desk‑based sales force. All are supported by
expert product managers and customer service agents.
Outside Great Britain, BT serves CPs through BT Ireland and BT Global
Services. BT remains Europe’s largest wholesale telecoms provider.
Markets and customers
We serve over 1,400 CPs, including: the major consumer
brands Sky, TalkTalk and Virgin Media; the mobile
operators, O2, Three and Vodafone; overseas CPs
operating in the UK; and other service providers such as
Daisy Group and KCOM Group. We also provide specialist
media and broadcast services to major organisations
including the BBC, Channel 4, ITV, Sky, SoftBank Corp.
and Star TV.
Our main competitors are Virgin Media, TalkTalk and Vodafone.
The main trends in the wholesale market this year were the
continuing take‑up of IP voice services and stronger demand
for higher‑bandwidth broadband networks.
Voice services: moving to IP
The number of calls made over traditional fixed networks fell by
10% this year, as calls moved to mobile networks or to instant
messaging and other IP‑based alternatives. And owners of these
networks were able to charge less to carry such calls, as a result
of price reductions imposed following Ofcom’s last Narrowband
Market Review.
As businesses opt to make and receive calls over IP they are
increasingly buying newer voice services such as SIP‑Trunking and
Hosted Voice. According to the Cavell Group, in 2015 the number
of SIP Trunks (which connect a business’s switchboard to its
IP voice service provider) grew by 31%. And users of Hosted IP
Voice (which eliminates the need for a switchboard altogether)
grew by 30%.
5%
Telecom Italia
51%
Other
16%
BT
12%
Orange
9%
Deutsche Telekom
7%
Telefónica
Revenue market share of European wholesale
telecommunications providers
Source:
European Wholesale Market Share 2014-15: The Big Picture
, Ovum, May 2016.
Inputs
We have 1,300 people, of whom 89% are customer‑facing.
We take advantage of the scale, reach and reliability of BT’s networks
and platforms.
We bring BT’s R&D resources to bear on our customers’ business issues.
Outputs
We supply wholesale telecoms products including voice, broadband,
Ethernet and hosted services. We also provide bespoke managed
solutions.
We invest in new services for the wholesale market, such as our Hosted
Communications Services and 4K video transport.
Outcomes
We take a share of the market which BT does not serve directly.
This year our share represented around 11% of BT’s revenue.
A more competitive market for communications services drives greater
customer choice.
Inputs, outputs and outcomes
New organisational structure
From 1 April 2016 we’re integrating BT Wholesale, EE’s wholesale
team and some of BT’s smaller business units into a new Wholesale
and Ventures line of business. The smaller business units include BT
Directories and BT Fleet, together with the majority of BT Redcare,
BT Payphones and Tikit. They’re all described on page 65. The new
organisational structure will give more visibility to these smaller
but important enterprises while bringing together the wholesale
businesses of BT and EE.
Customer service teams
Client
sales
teams
Desk-
based
sales
teams
Product management teams
Mobile network
operators
Media &
broadcasters
Fixed network
operators
Resellers
Customers