This is always going to attract debate from pro and anti factions ............ here's our CEO (Joe Garner) thoughts ....... please don't just dismiss out-of-hand, they're the personal thoughts of a FTSE100 CEO. A guy at the top.
The main reasons why I believe the current structure is right are as follows…
Being part of the Group enables us to invest for the future – improving speed and coverage
The most obvious example of this was the decision to invest £2.5bn in the fibre roll out. The Group made this decision in the depths of the recession in 2009. We offered this to all CPs, but only BT Consumer and BT Business confirmed their commitment to buy the product, this gave sufficient demand to support the investment. This fact is just as relevant today as it was in 2009. We have recently announced another massive investment - in NGA2.0 and G.fast - available to all CPs and we are confident once again that we will have demand from within BT. We could not be this confident were we not part of the Group, and we would not have been able to make this announcement now. Had we not invested in fibre in 2009, average broadband speeds in the UK today would be a fraction of what they are, and 23 million customers would be unable to access superfast broadband.
Being part of the Group enables us to provide better service to customers
Our service is improving… we are breaking records for the volume of Ethernet provision, the New Sites tail is reducing and we are well ahead of our Ofcom service levels on provision and repair. We have more to do, as customers increasingly use their line less for voice and more for data, but we are making strides forward against these changing needs. These improvements are helped by the Research, Development and Innovation capabilities that we can access from within the Group. BT TSO have thousands of engineers, scientists and technicians who are dedicated to improving the service our customers receive. For example, our colleagues in TSO proactively test virtually every line in the Openreach network every week. We also file hundreds of patents each year, and our teams at Adastral Park are driving the global telecommunications industry to create the technology that will keep the UK ahead in Europe for the quality of our fibre broadband infrastructure. No other company has this capability, and nor would we if we were separate from BT.
Being part of the Group encourages competition and choice which is good for Britain Plc
The Openreach network (unlike Virgin and other network providers) is open to all to use. Openreach operates on a principle of equivalence… meaning it is available to all, and on equal terms. So whether you are a multinational corporate like Sky, or a one man band, Openreach offers equivalent access to the nation’s communications infrastructure at the same price. Over the last ten years, this has encouraged competition – with over 500 CPs competing against each other on our network. We work in close collaboration with our CP customers to trial and develop propositions to ensure we offer truly effective wholesale offerings that serve end customers. Accessing the capital and expertise available within the Group, coupled with the principle of equivalence meaning everyone can benefit, giving the best of both worlds.
And what have been the results over the last ten years? Since 2006, competition in the market has grown from a handful of CPs, to hundreds. Broadband speeds have risen from under 2MB to over 20MB – now leading all the major countries in Europe. Prices for landlines have fallen (unlike some other utilities) and are among the best value in the world – a fraction of French, German or American offerings. This is good for Britain too, as we all know that an open and accessible internet infrastructure is essential for a thriving international economy.
At Openreach here in the UK, we are building Britain’s connected future. This is just one example of how BT is using the power of communications to make a better world. Our priority every day is to do the best we can to serve our customers in an equivalent and excellent way.