HOME

TheInfoList



OR:

BT Group plc ( trading as BT and formerly British Telecom) is a British multinational telecommunications
holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
headquartered in
London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
, England. It has operations in around 180 countries and is the largest provider of
fixed-line A landline (land line, land-line, main line, home phone, fixed-line, and wireline) is a telephone connection that uses metal wires or optical fiber telephone line for transmission, as distinguished from a mobile cellular network, which uses ...
,
broadband In telecommunications, broadband is wide bandwidth data transmission which transports multiple signals at a wide range of frequencies and Internet traffic types, that enables messages to be sent simultaneously, used in fast internet connections. ...
and mobile services in the UK, and also provides subscription television and
IT services Information technology service management (ITSM) is the activities that are performed by an organization to design, build, deliver, operate and control information technology (IT) services offered to customers. Differing from more technology-or ...
. BT's origins date back to the founding in 1846 of the
Electric Telegraph Company The Electric Telegraph Company (ETC) was a British telegraph company founded in 1846 by William Fothergill Cooke and John Ricardo. It was the world's first public telegraph company. The equipment used was the Cooke and Wheatstone telegraph, ...
, the world's first public telegraph company, which developed a nationwide communications network. BT Group as it came to be started in 1912, when the
General Post Office The General Post Office (GPO) was the state postal system and telecommunications carrier of the United Kingdom until 1969. Before the Acts of Union 1707, it was the postal system of the Kingdom of England, established by Charles II in 1660. ...
, a government department, took over the system of the National Telephone Company becoming the monopoly telecoms supplier in the United Kingdom. The Post Office Act of 1969 led to the GPO becoming a public corporation. The ''British Telecom'' brand was introduced in 1980, and became independent of the Post Office in 1981, officially trading under the name. British Telecommunications was privatised in 1984, becoming ''British Telecommunications plc'', with some 50 percent of its shares sold to investors. The Government sold its remaining stake in further share sales in 1991 and 1993. BT holds a royal warrant and has a primary listing on the
London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...
, and is a constituent of the
FTSE 100 Index The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" , is a share index of the 100  companies listed on the London Stock Exchange with (in principle) the highest marke ...
. BT controls a number of large subsidiaries. BT Global Services division supplies telecoms services to corporate and government customers worldwide, and its
BT Consumer BT Consumer is the main retail division of United Kingdom telecommunications company BT Group that provides fixed-line, mobile, broadband and digital television to consumers in the UK. It buys access to some of these services from BT's other ...
division supplies
telephony Telephony ( ) is the field of technology involving the development, application, and deployment of telecommunication services for the purpose of electronic transmission of voice, fax, or data, between distant parties. The history of telephony is i ...
,
broadband In telecommunications, broadband is wide bandwidth data transmission which transports multiple signals at a wide range of frequencies and Internet traffic types, that enables messages to be sent simultaneously, used in fast internet connections. ...
, and subscription television services in the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and ...
to around 18 million customers.


History

A number of privately owned
telegraph Telegraphy is the long-distance transmission of messages where the sender uses symbolic codes, known to the recipient, rather than a physical exchange of an object bearing the message. Thus flag semaphore is a method of telegraphy, whereas ...
companies operated in Britain from 1846 onwards. Among them were: *
Electric Telegraph Company The Electric Telegraph Company (ETC) was a British telegraph company founded in 1846 by William Fothergill Cooke and John Ricardo. It was the world's first public telegraph company. The equipment used was the Cooke and Wheatstone telegraph, ...
* British and Irish Magnetic Telegraph Company *
British Telegraph Company In the nineteenth century, the United Kingdom had the world's first commercial telegraph company. British telegraphy dominated international telecommunications well into the twentieth. Telegraphy is the sending of textual messages by human ope ...
*
London District Telegraph Company The London District Telegraph Company was formed in 1859. It was renamed the London and Provincial Telegraph Company in 1867. The management were connected with the British and Irish Magnetic Telegraph Company and the firm aimed to compete wit ...
* United Kingdom Telegraph Company The
Telegraph Act 1868 The Telegraph Act 1868 (31 & 32 Vict. c.110) was an Act of the Parliament of the United Kingdom. It paved the way for the British state to take over telegraph companies and/or their operations. It has been effectively repealed (only s.1, provi ...
passed the control of all these to the newly formed GPO (
General Post Office The General Post Office (GPO) was the state postal system and telecommunications carrier of the United Kingdom until 1969. Before the Acts of Union 1707, it was the postal system of the Kingdom of England, established by Charles II in 1660. ...
)'s Postal Telegraphs Department. With the invention of the
telephone A telephone is a telecommunications device that permits two or more users to conduct a conversation when they are too far apart to be easily heard directly. A telephone converts sound, typically and most efficiently the human voice, into e ...
by
Alexander Graham Bell Alexander Graham Bell (, born Alexander Bell; March 3, 1847 – August 2, 1922) was a Scottish-born inventor, scientist and engineer who is credited with patenting the first practical telephone. He also co-founded the American Telephone and T ...
in 1876 the GPO began to provide telephone services from some of its telegraph exchanges. In 1882 the Postmaster-General, Henry Fawcett started to issue licences to operate a telephone service to private businesses and the telephone system grew under the GPO in some areas and private ownership in others. The GPO's main competitor, the National Telephone Company, emerged in this market by absorbing other private telephone companies, prior to its absorption into the GPO in 1912. The trunk network was unified under GPO control in 1896 and the local distribution network in 1912. A few municipally owned services remained outside of GPO control. These were
Kingston upon Hull Kingston upon Hull, usually abbreviated to Hull, is a port city and unitary authority in the East Riding of Yorkshire, England. It lies upon the River Hull at its confluence with the Humber Estuary, inland from the North Sea and south- ...
,
Portsmouth Portsmouth ( ) is a port and city in the ceremonial county of Hampshire in southern England. The city of Portsmouth has been a unitary authority since 1 April 1997 and is administered by Portsmouth City Council. Portsmouth is the most d ...
and
Guernsey Guernsey (; Guernésiais: ''Guernési''; french: Guernesey) is an island in the English Channel off the coast of Normandy that is part of the Bailiwick of Guernsey, a British Crown Dependency. It is the second largest of the Channel Islands ...
. Hull still retains an independent operator, Kingston Communications, though it is no longer municipally controlled. In 1969 the GPO, a government department, became the
Post Office A post office is a public facility and a retailer that provides mail services, such as accepting letters and parcels, providing post office boxes, and selling postage stamps, packaging, and stationery. Post offices may offer additional se ...
, a nationalised industry separate from government.
Post Office Telecommunications Post Office Telecommunications was set up as a separate department of the UK Post Office, in October 1969. The Post Office Act 1969 was passed to provide for greater efficiency in post and telephone services; rather than run a range of services, ...
was one of the divisions.


Formation of British Telecom

The ''British Telecom'' brand was introduced in 1980. On 1 October 1981, this became the official name of
Post Office Telecommunications Post Office Telecommunications was set up as a separate department of the UK Post Office, in October 1969. The Post Office Act 1969 was passed to provide for greater efficiency in post and telephone services; rather than run a range of services, ...
, which became a state-owned corporation independent of the Post Office under the provisions of the
British Telecommunications Act 1981 The British Telecommunications Act 1981 (1981 c.38) is an act of the Parliament of the United Kingdom that transferred the state-owned telephone network from the Post office to a new statutory corporation, British Telecommunications, branded ...
. In 1982 BT's monopoly on telecommunications was broken with the granting of a licence to
Mercury Communications Mercury Communications was a national telephone company in the United Kingdom, formed in 1981 as a subsidiary of Cable & Wireless, to challenge the then-monopoly of British Telecom (BT). Although it proved only moderately successful at challen ...
.


Privatisation

On 19 July 1982, the Government announced its intention to sell shares in British Telecom to the public. On 1 April 1984, British Telecommunications was incorporated as a public limited company (plc) in anticipation of the passing of the Telecommunications Bill. This Bill received Royal Assent on 12 April, and the transfer to British Telecommunications plc from British Telecom as a statutory corporation of its business, its property, its rights and liabilities took place on 6 August 1984. Initially all shares in the new plc were owned by the Government. In November 1984, 50.2% of the new company was offered for sale to the public and employees. Shares were listed in London, New York, and Toronto and the first day of trading on was 3 December 1984. The Government sold half its remaining interest in December 1991 and the other half in July 1993. In July 1997, the new Labour Government relinquished its Special Share ("Golden Share"), retained at the time of the flotation, which had effectively given it the power to block a takeover of the company, and to appoint two non-executive directors to the Board. The company changed its trading name to "BT" on 2 April 1991. In 1996
Peter Bonfield Sir Peter Leahy Bonfield (born 3 June 1944) is a business executive who has led a number of companies in the fields of electronics, computers and communications. Currently a director of several companies in the USA, Europe and the Far East, he ...
was appointed CEO and Chairman of the Executive Committee, promising a "rollercoaster ride". In the 1990s, BT entered the Irish
telecommunications Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that ...
market through a joint venture with the
Electricity Supply Board The Electricity Supply Board (ESB; ga, Bord Soláthair an Leictreachais) is a state owned (95%; the rest are owned by employees) electricity company operating in the Republic of Ireland. While historically a monopoly, the ESB now operates as a ...
, the Irish state owned power provider. This venture, entitled Ocean, found its main success through the launch of Ireland's first subscription-free dial-up ISP, oceanfree.net. As a telecoms company it found much less success, mainly targeting corporate customers. BT acquired 100% of this venture in 1999.


BT's attempted global alliances


MCI

In June 1994 BT and MCI Communications launched Concert Communications Services which was a $1 billion joint venture between the two companies. Its aim was to build a network which would provide easy global connectivity to multinational corporations. This alliance progressed further on 3 November 1996 when the two companies announced that they had agreed to a merger, creating a global telecommunications company called Concert plc. The proposal gained approval from the
European Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body ...
, the
US Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United Stat ...
, and the US Federal Communications Commission and looked set to proceed. However, in light of pressure from investors reacting to the slide in BT's share price on the
London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...
, BT reduced its bid price for MCI, releasing MCI from its exclusivity clause and allowing it to speak to other interested parties. On 1 October 1997, Worldcom made a rival bid for MCI which was followed by a counter-bid from GTE. BT sold its stake in MCI to Worldcom in 1998 for £4,159 million. As part of the deal, BT also bought out from MCI its 24.9% interest in Concert Communications, thereby making Concert a wholly owned part of BT. The reaction to the failure of the deal in the City of London was critical of then Chairman Iain Vallance and CEO
Peter Bonfield Sir Peter Leahy Bonfield (born 3 June 1944) is a business executive who has led a number of companies in the fields of electronics, computers and communications. Currently a director of several companies in the USA, Europe and the Far East, he ...
, and the lack of confidence from the failed merger led to their removal.


AT&T

As BT now owned Concert, and still wanted access to the North American market, it needed a new partner. An
AT&T AT&T Inc. is an American multinational telecommunications holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world's largest telecommunications company by revenue and the third largest provider of mobile ...
/BT option had been mooted in the past, but stopped on regulatory grounds due to their individual virtual monopolies in their home markets. By 1996, this had receded to the point where a deal was possible and a deal was consummated in 1998. At its height, the Concert managed network was extensive. Although Concert continued signing customers, its rate of revenue growth slowed, so that in 1999 David Dorman was made CEO with a brief to revive it. In late 2000 the BT and AT&T boards fell-out – partly due to each partner's excess debt, and the resulting board room clear-outs – partly due to Concert's extensive annual losses. AT&T recognized that Concert was a threat to its ambitions if left intact, and so negotiated a deal where Concert was split in two in 2001: North America and Eastern Asia went to AT&T, the rest of the world and $400M to BT. BT's remaining Concert assets were merged into its BT Ignite, later BT Global Services group.


BT Ireland

In 2000, BT acquired Esat Telecom Group plc, and all its subsidiary companies, and
Ireland On Line Ireland On-Line (IOL) is a former ISP in Ireland. Ireland On-line was the first commercial internet service provider in the state. The company was formed in 1992 by Barry Flanagan, and was reported to have launched "Ireland's first mass-market In ...
. It also purchased
Telenor Telenor ASA ( or ) is a Norwegian majority state-owned multinational telecommunications company headquartered at Fornebu in Bærum, close to Oslo. It is one of the world's largest mobile telecommunications companies with operations worldwi ...
's minority shareholding in Esat Digifone. The Esat Telecom Group was split in two with the landline and internet operations were combining with Ocean to become part of BT Ignite. Esat Group was renamed Esat BT in July 2002, and eventually
BT Ireland BT Communications (Ireland) Limited is a telecommunications and internet company in Ireland. It is a subsidiary of BT Group plc. History Esat Telecom The company was founded in 1990 by a consortium headed by business magnate Denis O'Brien a ...
in April 2005. Esat Digifone became part of BT Wireless, before being spun off into a separate independent company
mmo2 plc O2 (typeset as O2) is a global brand name owned by the Spanish telecommunications company Telefónica. The company uses the O2 brand for its subsidiaries in the United Kingdom and Germany. Since 2018, it is also used as an online-only flanker ...
(now
Telefónica Europe O2 (typeset as O2) is a global brand name owned by the Spanish telecommunications company Telefónica. The company uses the O2 brand for its subsidiaries in the United Kingdom and Germany. Since 2018, it is also used as an online-only flanker ...
). EsatBT installed the first DSL lines in Ireland, to try and compete heavily with former state telecoms company
Eircom Eircom Limited, trading as Eir ( ; stylised eir), is a large fixed, mobile and broadband telecommunications company in Ireland. The now privatised company, which is currently incorporated in Jersey, traces its origins to the Ireland's former ...
and operate one exchange, in
Limerick Limerick ( ; ga, Luimneach ) is a western city in Ireland situated within County Limerick. It is in the province of Munster and is located in the Mid-West which comprises part of the Southern Region. With a population of 94,192 at the 2 ...
.


2001 debt crisis

By 2001, BT had a debt of £30 billion, much of which was acquired during the bidding round for the 3rd generation mobile telephony (commonly known as 3G) licences. It had also failed in its series of proposed global mergers, and the funds flowing from its then virtual monopoly of the UK market place had been largely removed. It was also headed by two executives who had little support from the
London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...
, particularly in light of a 60% drop in share price in sixteen months. Philip Hampton joined as CFO, and in April 2001 Sir Iain Vallance was replaced as Chairman by recognised turn around expert Sir Christopher Bland.


Europe's largest rights issue

In May 2001 BT carried out corporate Europe's largest ever rights issue, allowing it to raise £5.9 billion. A few days before, it sold stakes in
Japan Telecom SoftBank Telecom Corporation ( ja, ソフトバンクテレコム会社), previously as Japan Telecom Co. Ltd. ( ja, 日本テレコム株式会社, links=no,Nippon Terekomu Kabushiki-gaisha) was a Japanese telephone company of the SoftBank gr ...
, in mobile operator J-Phone Communications, and in Airtel of India to
Vodafone Vodafone Group plc () is a British multinational telecommunications company. Its registered office and global headquarters are in Newbury, Berkshire, England. It predominantly operates services in Asia, Africa, Europe, and Oceania. , Vod ...
.


Sale of Yell Group and demerger of O2

In June 2001 BT's directory business was sold as Yell Group to a combination of
private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a t ...
firms
Apax Partners Apax Partners LLP is a British private equity firm, headquartered in London, England. The company also operates out of six other offices in New York, Hong Kong, Mumbai, Tel Aviv, Munich and Shanghai. As of December 2017, the firm, including its ...
and Hicks, Muse, Tate & Furst for £2.1 billion. A demerger followed in November 2001, when the former mobile telecommunications business of BT, BT Cellnet, was hived off as a separate business named " mmO2". This included BT owned or operated networks in other countries, including BT Cellnet (UK), Esat Digifone (Ireland), and Viag Interkom (Germany). All networks now owned or operated by mmO2 (except Manx Telecom) were renamed as O2. The de-merger was accomplished via a share-swap, all British Telecommunications plc shareholders received one mmO2 plc and one BT Group plc (of which British Telecommunications is now a wholly owned subsidiary) share for each share they owned. British Telecommunications plc was de-listed on 16 November, and the two new companies started trading on 19 November.


Aftermath

At the end of the series of sales, in October 2001 Sir Peter Bonfield resigned, and was replaced by former Lucent CEO
Ben Verwaayen Bernardus Johannes Maria "Ben" Verwaayen Officier in de Orde van Oranje Nassau (born 11 February 1952) is a Dutch businessman and a general partner of Keen Venture Partners. He was Chief Executive Officer of telecommunications company Alcatel-Luc ...
. During Bonfield's tenure the share price went from £4 to £15, and back again to £5. Bonfield's salary to 31 March 2001 was a basic of £780,000 (increasing to £820,000) plus a £481,000 bonus and £50,000 of other benefits including pension. He also received a deferred bonus, payable in shares three years' later, of £481,000, and additional bonuses of £3.3 million. mmO2 plc was replaced by O2 plc in a further share-swap in 2005, and subsequently bought in an agreed takeover by Telefónica for £18 billion and delisted. In 2004, BT launched Consult 21, a consultation organisation that was to aid
BT 21CN The 21st Century Network (21CN) programme is the data and voice network transformation project, under way since 2004, of the UK telecommunications company BT Group plc. It was intended to move BT's telephone network from the AXE/ System X Public Sw ...
in the eventual conversion to digital telephony. In 2004, BT was awarded the contract to deliver and manage N3, a secure and fast broadband network for the
NHS National Programme for IT The NHS Connecting for Health (CFH) agency was part of the UK Department of Health and was formed on 1 April 2005, having replaced the former NHS Information Authority. It was part of the Department of Health Informatics Directorate, with the rol ...
(NPfIT) program, on behalf of the
English National Health Service The National Health Service (NHS) is the publicly funded healthcare system in England, and one of the four National Health Service systems in the United Kingdom. It is the second largest single-payer healthcare system in the world after ...
(NHS). In 2005 BT made a number of acquisitions. In February 2005, BT acquired Infonet (now re-branded BT Infonet), a large telecoms company based in
El Segundo, California El Segundo ( , ; ) is a city in Los Angeles County, California, United States. Located on Santa Monica Bay, it was incorporated on January 18, 1917, and is part of the South Bay Cities Council of Governments. The population was 16,731 as of the ...
, giving BT access to new geographies. It also acquired the Italian company Albacom. Then in April 2005, it bought Radianz from Reuters (now rebranded as BT Radianz), which expanded BT's coverage and provided BT with more buying power in certain countries. In August 2006, BT acquired online electrical retailer Dabs.com for £30.6 million. The
BT Home Hub The BT Smart Hub (formerly BT Home Hub) is a family of wireless residential gateway router modems distributed by BT for use with their own products and services and those of wholesale resellers (i.e. LLUs) but not with other Internet servic ...
manufactured by
Inventel Inventel was a French company developing consumer electronics and communication systems, noted for domestic gateways and considered one of the primary architects of Triple play in Europe. Founded in 1990 in Paris by Jacques Lewiner and Eric C ...
was also launched in June 2006. In October 2006, BT confirmed that it would be investing 75% of its total capital spending, put at £10 billion over five years, in its new
Internet Protocol The Internet Protocol (IP) is the network layer communications protocol in the Internet protocol suite for relaying datagrams across network boundaries. Its routing function enables internetworking, and essentially establishes the Internet. ...
(IP) based
21st century network The 21st Century Network (21CN) programme is the data and voice network transformation project, under way since 2004, of the UK telecommunications company BT Group plc. It was intended to move BT's telephone network from the AXE/ System X Public Sw ...
(21CN). Annual savings of £1 billion per annum were expected when the transition to the new network was to have been completed in 2010, with over 50% of its customers to have been transferred by 2008. That month the first customers on to 21CN was successfully tested at Adastral Park in Suffolk.


2007 to 2012

In January 2007, BT acquired Sheffield-based ISP, PlusNet plc, adding 200,000 customers. BT stated that PlusNet will continue to operate separately out of its Sheffield head-office. On 1 February 2007, BT announced agreed terms to acquire International Network Services Inc. (INS), an international provider of IT consultancy and software. In February 2007, Sir
Michael Rake Sir Michael Derek Vaughan Rake (born 17 January 1948) is a British businessman, former chairman of BT Group, former chairman of Worldpay Group plc, Worldpay and a director of S&P Global. He served as president of the Confederation of British Indu ...
succeeded Sir Christopher Bland. In April that year, they acquired
COMSAT COMSAT (Communications Satellite Corporation) is a global telecommunications company based in the United States. By 2007, it had branches in Brazil, Argentina, Colombia, Mexico, Peru, Venezuela and several other countries in the Americas. ...
International, followed in October by the acquisition of Lynx Technology. BT acquired Wire One Communications in June 2008 and folded the company into "BT Conferencing", its existing conferencing unit, as a new video business unit In July 2008, BT acquired the online business directory firm Ufindus for £20 million in order to expand its position in the local information market in GB. On 28 July 2008, BT acquired
Ribbit Ribbit may refer to: * Onomatopoeia for the sound that a frog makes. * Ribbit (Pillow Pal), a plush toy frog made by Ty, Inc. * Ribbit (telecommunications company), a telecommunications company based in Mountain View, California, acquired by BT G ...
, of
Mountain View, California Mountain View is a city in Santa Clara County, California, United States. Named for its views of the Santa Cruz Mountains, it has a population of 82,376. Mountain View was integral to the early history and growth of Silicon Valley, and is t ...
, "Silicon Valley's First Phone Company". Ribbit provides
Adobe Flash Adobe Flash (formerly Macromedia Flash and FutureSplash) is a multimedia software platform used for production of animations, rich web applications, desktop applications, mobile apps, mobile games, and embedded web browser video players. Flash ...
/
Flex Flex or FLEX may refer to: Computing * Flex (language), developed by Alan Kay * FLEX (operating system), a single-tasking operating system for the Motorola 6800 * FlexOS, an operating system developed by Digital Research * FLEX (protocol), a com ...
APIs, allowing web developers to incorporate telephony features into their
software as a service Software as a service (SaaS ) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. SaaS is also known as "on-demand software" and Web-based/Web-hosted software. SaaS is co ...
(SaaS) applications. In the early days of its fibre broadband rollout, BT said it would deliver fibre-to-the-premises (
FTTP Fiber to the ''x'' (FTTX; also spelled "fibre") or fiber in the loop is a generic term for any broadband network architecture using optical fiber to provide all or part of the local loop used for last mile telecommunications. As fiber optic ...
) to around 25% of the Country, with the rest catered for by the slower fibre-to-the-cabinet (FTTC), which uses copper wiring to deliver the final stretch of the connection. In 2014, with less than 0.7% of the company's fibre network being FTTP, BT dropped the 25% target, saying that it was "far less relevant today" because of improvements made to the headline speed of FTTC, which had doubled to 80Mbit/s since its fibre broadband rollout was first announced. To supplement FTTC, BT offered an 'FTTP on Demand' product. In January 2015, BT stopped taking orders for the on-demand product. On 1 April 2009, BT Engage IT was created from the merger of two previous BT acquisitions, Lynx Technology and Basilica. Apart from the name change not much else changed in operations for another 12 months. On 14 May 2009, BT said it was cutting up to 15,000 jobs in the coming year after it announced its results for the year to 31 March 2009. Then in July 2009, BT offered workers a long holiday for an up front sum of 25% of their annual wage or a one-off payment of £1000 if they agree to go part-time. On 6 April 2011, BT launched the first online
not-for-profit A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
fundraising service for UK charities called BT MyDonate as part of its investment to the community. The service will pass on 100% of all donations made through the site to the charity, and unlike other services which take a proportion as commission and charge charities for using their services, BT will only pass on credit/debit card charges for each donation. The service allows people to register to give money to charity or collect fundraising donations. BT developed MyDonate with the support of Cancer Research UK, Changing Faces,
KidsOut KidsOut is a small charity based in Leighton Buzzard which provides a range of services to bring about positive change to thousands of disadvantaged children around the U.K. It uniquely centers on the charities actions rather than the child's ci ...
, NSPCC and
Women's Aid Women's Aid Federation of England, commonly called Women's Aid within England, is one of a group of charities across the United Kingdom. There are four main Women's Aid Federations, one for each of the countries of the United Kingdom. Its aim is t ...
.


2013 to present

In March 2013, BT was allocated 4G spectrum in the UK following an auction and assignment by Ofcom, after paying £201.5m. On 1 August 2013, BT launched its first television channels, BT Sport, to compete with rival broadcaster
Sky Sports Sky Sports is a group of British subscription sports channels operated by the satellite pay television company Sky Group (a division of Comcast), and is the dominant subscription television sports brand in the United Kingdom and Ireland. It ...
. Plans for the channels' launch came about when it was announced in June 2012 that BT had been awarded a package of broadcast rights for the
Premier League The Premier League (legal name: The Football Association Premier League Limited) is the highest level of the men's English football league system. Contested by 20 clubs, it operates on a system of promotion and relegation with the English Fo ...
from the 2013–14 to 2015–16 season, broadcasting 38 matches from each season. In February 2013, BT acquired
ESPN Inc. ESPN Inc. is an American multinational sports media conglomerate majority-owned by The Walt Disney Company, with Hearst Communications as an equity stakeholder. For management and financial reporting purposes, the company is the main entity w ...
's UK and Ireland TV channels, continuing its expansion into sports broadcasting.
ESPN America ESPN America was a British-based European sports network, focusing on professional and collegiate sports of the United States and Canada. Originally launched on 5 December 2002 as NASN (the ''North American Sports Network''), ESPN America broa ...
and ESPN Classic were both closed, while
ESPN ESPN (originally an initialism for Entertainment and Sports Programming Network) is an American international basic cable sports channel owned by ESPN Inc., owned jointly by The Walt Disney Company (80%) and Hearst Communications (20%). The ...
continued to be operated by BT. On 9 November 2013, BT announced it had acquired exclusive rights to the Champions League and Europa League for £897m, from the 2015 season, with some free games remaining including both finals. On 1 November 2014, BT created a new central business services (CBS) organisation to provide customer services and improve operational efficiency levels. On 24 November 2014, shares in BT rose considerably on the announcement that the company was in talks to buy back O2, while at the same time confirmed it was also in talks to acquire EE. BT subsequently entered into exclusive talks to buy EE for £12.5 billion on 15 December 2014 and confirmed on 5 February 2015, subject to regulatory approval. The deal will combine BT's 10 million retail customers and EE's 24.5 million direct mobile subscribers.
Deutsche Telekom Deutsche Telekom AG (; short form often just Telekom, DTAG or DT; stylised as ·T·) is a German telecommunications company that is headquartered in Bonn and is the largest telecommunications provider in Europe by revenue. Deutsche Telekom was ...
will own 12% of BT, while Orange S.A. will own 4%. In March 2015, launched a 4G service as
BT Mobile BT Mobile is a mobile virtual network operator (MVNO) provided by BT Consumer; a division of BT Group in the United Kingdom that was launched in March 2015. It uses the EE network via an MVNO agreement signed in March 2014 as well as using the ...
BT Group CEO
Gavin Patterson Gavin Patterson (born 6 September 1967) is a businessman who was President & Chief Revenue Officer of Salesforce and Chief Executive of BT Group from 2013–19. Early life He was born in Altrincham in Greater Manchester in 1967, and at ...
announced that BT plans to migrate all of its customers onto the IP network by 2025, switching off the company's ISDN network. On 15 January 2016, BT received final unconditional approval by the Competition and Markets Authority to acquire EE. The deal was officially completed on 29 January 2016 with
Deutsche Telekom Deutsche Telekom AG (; short form often just Telekom, DTAG or DT; stylised as ·T·) is a German telecommunications company that is headquartered in Bonn and is the largest telecommunications provider in Europe by revenue. Deutsche Telekom was ...
now owning 12% of BT, while Orange S.A. own 4%. On 1 February 2016, BT announced a new organisational structure that will take effect from April 2016 following the successful acquisition of EE. The EE brand, network and high street stores will be retained and will become a second consumer division, operating alongside
BT Consumer BT Consumer is the main retail division of United Kingdom telecommunications company BT Group that provides fixed-line, mobile, broadband and digital television to consumers in the UK. It buys access to some of these services from BT's other ...
. It will serve customers with mobile services, broadband and TV and will continue to deliver the Emergency Services Network contract which was awarded to EE in late 2015. There will be a new BT Business and Public Sector division that will have around £5bn of revenues and will serve small and large businesses as well as the public sector in the UK and Ireland. It will comprise the existing
BT Business BT or Bt may refer to: Arts, media and entertainment The arts * BT (musician) (born Brian Transeau), American electronic musician * ''BT'' (album), a 2000 album by Buck-Tick * Burton Taylor Studio or ''The BT'', managed by Oxford Playhouse Fi ...
division along with EE's business division and those parts of BT Global Services that are UK focused. There will also be another new division; BT Wholesale and Ventures that will comprise the existing BT Wholesale division along with EE's MVNO business as well as some specialist businesses such as Fleet, Payphones and Directories. Gerry McQuade, currently Chief Sales and Marketing Officer, Business at EE, will be its CEO. On 8 June 2017, BT appointed
KPMG KPMG International Limited (or simply KPMG) is a multinational professional services network, and one of the Big Four accounting organizations. Headquartered in Amstelveen, Netherlands, although incorporated in London, England, KPMG is a net ...
as its new auditor to replace
PwC PricewaterhouseCoopers is an international professional services brand of firms, operating as partnerships under the PwC brand. It is the second-largest professional services network in the world and is considered one of the Big Four accounti ...
in the wake of the fraud scandal in Italy that triggered a major profit warning earlier that year. Also in of that year, KPMG fired six US employees over a scandal that calls into question efforts to ensure that public company accounts are being properly scrutinised. On 8 July 2017, ''
The Daily Telegraph ''The Daily Telegraph'', known online and elsewhere as ''The Telegraph'', is a national British daily broadsheet newspaper published in London by Telegraph Media Group and distributed across the United Kingdom and internationally. It was f ...
'' reported that BT "has called in consultants from
McKinsey McKinsey & Company is a global management consulting firm founded in 1926 by University of Chicago professor James O. McKinsey, that offers professional services to corporations, governments, and other organizations. McKinsey is the oldest a ...
to conduct a review of its businesses in the hope of saving hundreds of millions of pounds per year. The work, dubbed 'Project Novator', is understood to include a potential merger of BT's struggling global services corporate networking and IT unit with its business and public sector division". On 28 July 2017, BT announced organisational changes to "simplify its operating model, strengthen accountabilities and accelerate its transformation" and involves bringing together its
BT Consumer BT Consumer is the main retail division of United Kingdom telecommunications company BT Group that provides fixed-line, mobile, broadband and digital television to consumers in the UK. It buys access to some of these services from BT's other ...
and EE divisions into a new unified BT Consumer division that will operate across three brands – BT, EE and Plusnet. It will take effect from 1 April 2018. On 18 April 2018, BT announced further organisational changes following unification of its BT Consumer and EE divisions, and involves bringing together its BT Business and Public Sector and BT Wholesale and Ventures divisions into a new unified division known as ''BT Enterprise''. It will also include BT's Ventures business which "acts as an incubator for potential new growth areas of the company" and will report as a single unit from 1 October 2018. In June 2021, the French telecommunications company, Altice acquired a 12% stake in BT, increasing that stake to 18% in December 2021.


Operations

BT Group is a
holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
; the majority of its businesses and assets are held by its wholly owned subsidiary British Telecommunications plc. BT's businesses are operated under special government regulation by the British telecoms regulator
Ofcom The Office of Communications, commonly known as Ofcom, is the government-approved regulatory and competition authority for the broadcasting, telecommunications and postal industries of the United Kingdom. Ofcom has wide-ranging powers acros ...
(formerly Oftel). BT has been found to have significant market power in some markets following market reviews by Ofcom. In these markets, BT is required to comply with additional obligations such as meeting reasonable requests to supply services and not to discriminate. BT runs the telephone exchanges, trunk network and local loop connections for the vast majority of British fixed-line telephones. Currently BT is responsible for approximately 28 million telephone lines in GB. Apart from KCOM Group, which serves Kingston upon Hull, BT is the only UK telecoms operator to have a ''
Universal service Universal service is an economic, legal and business term used mostly in regulated industries, referring to the practice of providing a baseline level of services to every resident of a country. An example of this concept is found in the US Telec ...
Obligation,'' (USO) which means it must provide a fixed telephone line to any address in the UK. It is also obliged to provide public call boxes. As well as continuing to provide service in those traditional areas in which BT has an obligation to provide services or is closely regulated, BT has expanded into more profitable products and services where there is less regulation. These are principally, broadband internet service and
bespoke The word ''bespoke'' () has evolved from a verb meaning 'to speak for something', to its contemporary usage as an adjective. Originally, the adjective ''bespoke'' described tailor-made suits and shoes. Later, it described anything commissioned t ...
solutions in telecommunications and information technology.


Corporate affairs


Buildings and facilities

As BT operates in around 180 countries, it owns and leases a range of buildings and facilities in the UK and around the world. In 2001, it sold some of its UK property portfolio for £2.38 billion to Telereal Trillium in a 30-year
leaseback Leaseback, short for "sale-and-leaseback", is a financial transaction in which one sells an asset and leases it back for the long term; therefore, one continues to be able to use the asset but no longer owns it. The transaction is generally done ...
. The deal included 6,700 properties and contributed towards alleviating its debt at the time, with the main advantage being flexibility as it allows BT to vacate property over time, so as to adapt to changing operational requirements.


Headquarters

Until December 2021, BT Group's world headquarters and registered office was the BT Centre, a 10-storey office building at 81 Newgate Street in the
City of London The City of London is a city, ceremonial county and local government district that contains the historic centre and constitutes, alongside Canary Wharf, the primary central business district (CBD) of London. It constituted most of London f ...
, opposite
St Paul's tube station St Paul's is a London Underground station located in the City of London financial district. The station, which takes its name from the nearby St Paul's Cathedral, is on the Central line, between Bank and Chancery Lane stations, and is in ...
. In November 2021 BT relocated to new headquarters at One Braham, a brand new 18-storey building completed earlier in 2021.


Buildings and stations

Some of its UK buildings and stations are:


Telecommunications towers

BT remains one of the largest owners of telecommunications towers in the UK and were a major node in its microwave network. Its BT Tower in London is notable for numerous reasons such as being the tallest building in the UK from its construction in the 1960s until the early 1980s, its
revolving restaurant A revolving restaurant or rotating restaurant is usually a tower restaurant eating space designed to rest atop a broad circular revolving platform that operates as a large turntable. The building remains stationary and the diners are carried on ...
at the top known as 'Top of the Tower' in operation through the late 1960s and 1970s, and remains one of the UK's most important
communications Communication (from la, communicare, meaning "to share" or "to be in relation with") is usually defined as the transmission of information. The term may also refer to the message communicated through such transmissions or the field of inquir ...
nerve centres, the heart of a vast broadcasting and communications network. It carries approximately 95% of the UK's TV content, including live broadcasts and 99% of all live football games as well as pioneering the first international HD, 3D and 4K television transmissions. It serves media production and distribution customers around the world and as part of the Things Connected Network launched in London, it became the highest building in the world to host an
Internet of things The Internet of things (IoT) describes physical objects (or groups of such objects) with sensors, processing ability, software and other technologies that connect and exchange data with other devices and systems over the Internet or other com ...
(IoT)
base station Base station (or base radio station) is – according to the International Telecommunication Union's (ITU) Radio Regulations (RR) – a "land station in the land mobile service." The term is used in the context of mobile telephony, wireless c ...
in September 2016. Some of its towers are:


Other

Some of its other UK facilities are:


Divisions

BT Group is organised into the following divisions:


Customer facing

*
BT Consumer BT Consumer is the main retail division of United Kingdom telecommunications company BT Group that provides fixed-line, mobile, broadband and digital television to consumers in the UK. It buys access to some of these services from BT's other ...
– provides retail telecoms services to consumers in the UK including: ** BT Broadband ** BT Superfast Fibre ** BT TV ** BT Sport **
BT Mobile BT Mobile is a mobile virtual network operator (MVNO) provided by BT Consumer; a division of BT Group in the United Kingdom that was launched in March 2015. It uses the EE network via an MVNO agreement signed in March 2014 as well as using the ...
** BT Wi-fi ** BT One Phone ** Plusnet - internet service provider, provides mobile and fixed communications services to consumers in the UK ** EE – mobile network operator, provides mobile and fixed communications services to consumers in the UK * BT Enterprise – products and services to organisations in the small-to-medium sized business, corporate and public sectors, and wholesale services. Formed following BT's decision to merge its Business and Public Sector division with its Wholesale and Ventures business. * BT Global Services – provides telecoms and IT services to multinationals * Openreach – fenced-off wholesale division, established in 2005 following a review by
Ofcom The Office of Communications, commonly known as Ofcom, is the government-approved regulatory and competition authority for the broadcasting, telecommunications and postal industries of the United Kingdom. Ofcom has wide-ranging powers acros ...
and commenced operations in 2006, employing 25,000 engineers previously employed by BT. Its purpose is to ensure that other communications providers have the same operational conditions as BT, and is responsible for the provision and repair in the " last mile" of copper wire.


Internal services

* Networks – Responsible for designing, building and running the networks and technology platforms that BT and its customers use. ** BT Research * Digital – Responsible for leading BT's digital transformation, driving experience innovation and delivering the products and services customers use. *BT's
procurement Procurement is the method of discovering and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. When a government agency buys goods or s ...
arm, "BT Sourced", was established in February 2021 and is based in
Dublin Dublin (; , or ) is the capital and largest city of Ireland. On a bay at the mouth of the River Liffey, it is in the province of Leinster, bordered on the south by the Dublin Mountains, a part of the Wicklow Mountains range. At the 2016 ...
.


Corporate governance

BT's
board of directors A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit orga ...
as of November 2021: BT's executive committee as of March 2018:


Pension fund

BT has the second largest defined benefit pension plan of any UK public company. The trustees valued the scheme at £36.7 billion at the end of 2010; an actuarial valuation valued the deficit of the scheme at £9.043 billion as of 31 December 2008. Following a change in the regulations governing inflation index linking, the deficit was estimated at £5.2 billion in November 2010.


Sponsorships

BT sponsored Scotland's domestic
rugby union Rugby union, commonly known simply as rugby, is a close-contact team sport that originated at Rugby School in the first half of the 19th century. One of the two codes of rugby football, it is based on running with the ball in hand. In it ...
championship and cup competitions between 1999 and 2006. On 31 July 2012, it was announced that BT agreed a three-year sponsorship deal with Ulster Rugby and sees BT become the Official Communications Partner. BT's logo will appear on the Ulster Rugby shirt sleeve for all friendlies,
Heineken Cup The European Rugby Champions Cup (known as the Heineken Champions Cup for sponsorship reasons) is an annual rugby union tournament organised by European Professional Club Rugby (EPCR). It is the top-tier competition for clubs who compete in a pre ...
and RaboDirect Pro12 matches as well as a significant brand presence at their home ground;
Ravenhill Stadium Ravenhill Stadium (known as the Kingspan Stadium for sponsorship reasons) is a rugby stadium located in Belfast, Northern Ireland. It is the home of Ulster Rugby. With the opening of a new stand for the 2014 Heineken Cup quarter-final against ...
. On 29 July 2013, it was announced that BT had partnered up with
Scottish Rugby Union The Scottish Rugby Union (SRU; gd, Aonadh Rugbaidh na h-Alba) is the governing body of rugby union in Scotland. Styled as Scottish Rugby, it is the second oldest Rugby Union, having been founded in 1873. The SRU oversees the national league s ...
in a four-year sponsorship deal with its two professional clubs;
Edinburgh Rugby Edinburgh Rugby (formerly Edinburgh Reivers, Edinburgh Gunners) is one of the two professional rugby union teams from Scotland. The club competes in the United Rugby Championship, along with the Glasgow Warriors, its oldest rival. Edinburgh p ...
and
Glasgow Warriors Glasgow Warriors are a professional rugby union side from Scotland. The team plays in the United Rugby Championship league and in the European Professional Club Rugby tournaments. In the 2014–15 season they won the Pro12 title and became ...
that will commence from August 2013. The deal involves BT Sport becoming the new shirt sponsor for both clubs as well as being promoted with BT Group at their respective home grounds;
Scotstoun Stadium Scotstoun Stadium is an athletics and rugby union stadium in Scotstoun, an area in the West End of Glasgow, Scotland. Glasgow Warriors have trained at the facility since 2009 and have played their home games here from the 2012–13 seas ...
and
Murrayfield Stadium Murrayfield Stadium (known as BT Murrayfield Stadium for sponsorship reasons, or popularly as Murrayfield) is a Rugby stadium located in the Murrayfield area of Edinburgh, Scotland. It has a seating capacity of 67,144 making it the largest sta ...
. On 13 May 2014, BT joined Sky, TalkTalk and
Virgin Media Virgin Media is a British telecommunications company which provides telephone, television and internet services in the United Kingdom. Its headquarters are at Green Park in Reading, England. It is owned by Virgin Media O2, a 50:50 joint ventu ...
as founding partners of
Internet Matters Internet Matters is a not-for-profit organisation based in London, England. Launched in May 2014 by the United Kingdom's largest internet service providers BT, Sky, TalkTalk and Virgin Media, the organisation offers child internet safety advic ...
, a
not-for-profit organisation A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
that provides online safety advice for parents and their children. On 28 May 2014, it was announced that BT agreed a £20 million four-year sponsorship deal with
Scottish Rugby Union The Scottish Rugby Union (SRU; gd, Aonadh Rugbaidh na h-Alba) is the governing body of rugby union in Scotland. Styled as Scottish Rugby, it is the second oldest Rugby Union, having been founded in 1873. The SRU oversees the national league s ...
which includes BT securing the naming rights for
Murrayfield Stadium Murrayfield Stadium (known as BT Murrayfield Stadium for sponsorship reasons, or popularly as Murrayfield) is a Rugby stadium located in the Murrayfield area of Edinburgh, Scotland. It has a seating capacity of 67,144 making it the largest sta ...
which becomes BT Murrayfield Stadium, become sponsor of the Scotland sevens team, become principal and exclusive sponsor of Scotland's domestic league and cup competitions from next season, taking over the role from The Royal Bank of Scotland and become sponsor of Scottish Rugby's four new academies that aims to drive forward standards for young players who have aspirations to play professionally. On 14 April 2015, it was announced that as part of BT's current £20 million four-year sponsorship deal with
Scottish Rugby Union The Scottish Rugby Union (SRU; gd, Aonadh Rugbaidh na h-Alba) is the governing body of rugby union in Scotland. Styled as Scottish Rugby, it is the second oldest Rugby Union, having been founded in 1873. The SRU oversees the national league s ...
that was announced in May 2014, BT has completed its sponsorship portfolio following an additional investment of £3.6 million for the 3 years remaining of its sponsorship deal, to become the new shirt sponsor for the Scotland national teams. On 27 January 2016, it was announced that BT, alongside YouTube will be the new joint headline sponsors in a three-year deal with Edinburgh International Television Festival. The two companies will "share prominence across all branding of the 41st TV Festival, including the famous MacTaggart Lecture and will work closely with the festival organisers in their bid to reflect new trends in a rapidly transforming industry, from new ways of distributing content to technical innovations such as
virtual reality Virtual reality (VR) is a simulated experience that employs pose tracking and 3D near-eye displays to give the user an immersive feel of a virtual world. Applications of virtual reality include entertainment (particularly video games), edu ...
". BT is the founding and principal partner of the
Wayne Rooney Wayne Mark Rooney (born 24 October 1985) is an English professional football manager and former player, who is the manager of Major League Soccer club D.C. United in the United States. He spent much of his playing career as a forward while ...
Foundation, which was established to improve the lives of children and young people. The Foundation will run events "to raise vital funds to support the work of key organisations dedicated to supporting disadvantaged and vulnerable children and young people". These organisations are four chosen charities which are, Manchester United Foundation, NSPCC, Claire House Children's Hospice and
Alder Hey Children's Hospital Alder Hey Children's Hospital is a children's hospital and NHS foundation trust in West Derby, Liverpool, England. It is one of the largest children's hospitals in the United Kingdom, and one of several specialist hospitals within the Liverpo ...
. The first of these events was Wayne's testimonial match in August 2016 between
Manchester United F.C. Manchester United Football Club, commonly referred to as Man United (often stylised as Man Utd), or simply United, is a professional football club based in Old Trafford, Greater Manchester, England. The club competes in the Premier League, ...
and
Everton F.C. Everton Football Club () is an English professional association football club based in Liverpool that competes in the Premier League, the top tier of English football. The club was a founder member of the Football League in 1888 and has com ...
which raised £1.2 million. The match was screened live through BT Sport with BT MyDonate being the official fundraising platform for the testimonial, with both online and text options for donations promoted during the match. On 26 May 2017, it was announced that BT is to sponsor the 2017
British Urban Film Festival The British Urban Film Festival (BUFF) was formed in July 2005 to showcase urban independent cinema in the absence of any such state-sponsored activity in the UK. Supported by filmmakers and British actors, the organisation was set up by Emm ...
(BUFF) and sees BT host every event of the film festival, including the Awards at the BT Tower. BT will also broadcast the awards ceremony on BT.com and will have the opportunity to screen films acquired from the festival on its BT TV store platform. On 6 September 2017, it was announced that BT had extended its current £20 million four-year sponsorship deal with
Scottish Rugby Union The Scottish Rugby Union (SRU; gd, Aonadh Rugbaidh na h-Alba) is the governing body of rugby union in Scotland. Styled as Scottish Rugby, it is the second oldest Rugby Union, having been founded in 1873. The SRU oversees the national league s ...
that was announced in May 2014, for a further three years beginning from June 2018. The new deal sees BT retain the naming rights to BT Murrayfield Stadium, alongside its role as principal partner of the Scotland national team and Scotland 7s. BT's logo will continue to be displayed on the front of Scotland rugby shirts across the world, in the
Six Nations Championship The Six Nations Championship (known as the Guinness Six Nations for sponsorship reasons) is an annual international men's rugby union competition between the teams of England, France, Ireland, Italy, Scotland and Wales. The current champions ar ...
, as well as the summer and autumn test matches. BT will also continue to be promoted at
Edinburgh Rugby Edinburgh Rugby (formerly Edinburgh Reivers, Edinburgh Gunners) is one of the two professional rugby union teams from Scotland. The club competes in the United Rugby Championship, along with the Glasgow Warriors, its oldest rival. Edinburgh p ...
and
Scotstoun Stadium Scotstoun Stadium is an athletics and rugby union stadium in Scotstoun, an area in the West End of Glasgow, Scotland. Glasgow Warriors have trained at the facility since 2009 and have played their home games here from the 2012–13 seas ...
in Glasgow.


Historical financial performance

BT's financial results have been as follows:


2008–present


1992–2007


Controversies


World Wide Web hyperlink patent

In 2001, BT discovered it owned a patent () which it believed gave it patent rights on the use of
hyperlink In computing, a hyperlink, or simply a link, is a digital reference to data that the user can follow or be guided by clicking or tapping. A hyperlink points to a whole document or to a specific element within a document. Hypertext is text w ...
technology on the
World Wide Web The World Wide Web (WWW), commonly known as the Web, is an information system enabling documents and other web resources to be accessed over the Internet. Documents and downloadable media are made available to the network through web ...
. The corresponding UK patent had already expired, but the US patent was valid until 2006. On 11 February 2002, BT began a court case relating to its claims in a US federal court against the
Internet service provider An Internet service provider (ISP) is an organization that provides services for accessing, using, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, non-profit, or otherwise priva ...
Prodigy Communications Corporation. In the case '' British Telecommunications plc v. Prodigy'', the
United States District Court for the Southern District of New York The United States District Court for the Southern District of New York (in case citations, S.D.N.Y.) is a federal trial court whose geographic jurisdiction encompasses eight counties of New York State. Two of these are in New York City: New ...
ruled on 22 August 2002 that the BT patent was not applicable to web technology and granted Prodigy's request for summary judgment of non-infringement.


Behavioural targeting

In early 2008 it was announced that BT had entered into a contract (along with
Virgin Media Virgin Media is a British telecommunications company which provides telephone, television and internet services in the United Kingdom. Its headquarters are at Green Park in Reading, England. It is owned by Virgin Media O2, a 50:50 joint ventu ...
and TalkTalk) with the
spyware Spyware (a portmanteau for spying software) is software with malicious behaviour that aims to gather information about a person or organization and send it to another entity in a way that harms the user—for example, by violating their priv ...
company
Phorm Phorm, formerly known as 121Media, was a digital technology company known for its contextual advertising software. Phorm was incorporated in Delaware, United States, but relocated to Singapore as Phorm Corporation (Singapore) Ltd in 2012. Founde ...
(responsible under their 121Media guise for the Apropos rootkit) to intercept and analyse their users' click-stream data and sell the anonymised aggregate information as part of Phorm's OIX advertising service. The practice, known as "
behavioural targeting Targeted advertising is a form of advertising, including online advertising, that is directed towards an audience with certain traits, based on the product or person the advertiser is promoting. These traits can either be demographic with a focu ...
" and condemned by critics as "data pimping", came under intense fire from various internet communities and other interested-parties who believe that the interception of data without the consent of users and web site owners is illegal under UK law (RIPA). At a more fundamental level, many have argued that the ISPs and Phorm have no right to sell a commodity (a user's data, and the copyrighted content of web sites) to which they have no claim of ownership. In response to questions about Phorm and the interception of data by the Webwise system Sir
Tim Berners-Lee Sir Timothy John Berners-Lee (born 8 June 1955), also known as TimBL, is an English computer scientist best known as the inventor of the World Wide Web. He is a Professorial Fellow of Computer Science at the University of Oxford and a profes ...
, the creator of the World Wide Web, indicated his disapproval of the concept and is quoted as saying of his data and web history:


Huawei infrastructure access

Beginning in 2010 the UK intelligence community investigated
Huawei Huawei Technologies Co., Ltd. ( ; ) is a Chinese multinational technology corporation headquartered in Shenzhen, Guangdong, China. It designs, develops, produces and sells telecommunications equipment, consumer electronics and various sma ...
, the Chinese supplier of BT's new fibre infrastructure with increasing urgency after the United States, Canada and Australia prevented the company from operating in their countries. Although BT had notified the UK government in 2003 of Huawei's interest in their £10bn network upgrade contract, they did not raise the security implications as BT failed to explain that the Chinese company would have unfettered access to critical infrastructure. On 16 December 2012 the then prime minister
David Cameron David William Donald Cameron (born 9 October 1966) is a British former politician who served as Prime Minister of the United Kingdom from 2010 to 2016 and Leader of the Conservative Party from 2005 to 2016. He previously served as Leader o ...
was supplied with an in-depth report indicating that the intelligence services had very grave doubts regarding Huawei, and that UK governmental, military, and civilian privacy may have been under serious threat. On 7 June 2013, British lawmakers concluded that BT should not have allowed Huawei access to the UK's communications network without ministerial oversight, saying they were 'deeply shocked' that BT did not inform government that they were allowing Huawei and
ZTE ZTE Corporation is a Chinese partially state-owned technology company that specializes in telecommunication. Founded in 1985, ZTE is listed on both the Hong Kong and Shenzhen Stock Exchanges. ZTE's core business is wireless, exchange, op ...
, both with ties to the Chinese military, unfettered access to critical national systems. Furthermore, ministers discovered that the agency with the responsibility to ensure Chinese equipment and code was threat-free was entirely staffed by Huawei employees. Subsequently, parliamentarians confirmed that in case of an attack on the UK there was nothing that could be done to stop Chinese infiltration. By 2016 Huawei had put measures in place to ensure the integrity of UK national security. Specifically their UK work is now overseen by a board that includes directors from GCHQ, the
Cabinet Office The Cabinet Office is a department of His Majesty's Government responsible for supporting the prime minister and Cabinet. It is composed of various units that support Cabinet committees and which co-ordinate the delivery of government object ...
and the Home Office.
ZTE ZTE Corporation is a Chinese partially state-owned technology company that specializes in telecommunication. Founded in 1985, ZTE is listed on both the Hong Kong and Shenzhen Stock Exchanges. ZTE's core business is wireless, exchange, op ...
, another Chinese company that supplies extensive network equipment and subscriber hardware used with BT 'Infinity', was also under scrutiny by parliament's intelligence and security committee after the US, Canada, Australia and the European Union declared the company a security risk.


Alleged complicity with drone strikes in Yemen and Somalia

In September 2012, BT entered into a $23 million deal with the US military to provide a key communications cable connecting RAF Croughton, a US military base on UK soil, with
Camp Lemonnier Camp Lemonnier is a United States Naval Expeditionary Base, situated next to Djibouti–Ambouli International Airport in Djibouti City, and home to the Combined Joint Task Force – Horn of Africa (CJTF-HOA) of the U.S. Africa Command (USAFRICO ...
, a large US base in Djibouti. Camp Lemonnier is used as a base for American drone attacks in Yemen and Somalia, and has been described by ''The Economist'' as "the most important base for drone operations outside the war zone of Afghanistan." Human rights groups including Reprieve and
Amnesty International Amnesty International (also referred to as Amnesty or AI) is an international non-governmental organization focused on human rights, with its headquarters in the United Kingdom. The organization says it has more than ten million members and s ...
have criticised the use of armed drones outside declared war zones. Evidence produced by The Bureau of Investigative Journalism and
Stanford University Stanford University, officially Leland Stanford Junior University, is a private research university in Stanford, California. The campus occupies , among the largest in the United States, and enrolls over 17,000 students. Stanford is conside ...
's International Human Rights & Conflict Resolution Clinic suggest that drone strikes have caused substantial civilian casualties, and may be illegal under international law. In 2013, BT was the subject of a complaint by Reprieve to the
Department of Business, Innovation and Skills , type = Department , logo = Department for Business, Innovation and Skills logo.svg , logo_width = 200px , logo_caption = , picture = File:Лондан. 2014. Жнівень 26.JPG , seal = , se ...
under the OECD Guidelines for Multinational Enterprises, following their refusal to explain whether or not their infrastructure was used to facilitate drone strikes. The subsequent refusal of this complaint was appealed in May 2014, on the basis that the UK National Contact Point's decision did not follow the OECD Guidelines. The issue of bias was also raised, due to the appointment of Lord Ian Livingston as government minister for the department which was processing the complaint: Livingston had occupied a senior position at BT when the cable between RAF Croughton and Camp Lemonnier was originally built.


Overcharging

In February 2017, a review of the telecoms market by Ofcom found that BT's landline only contracts provided poor value to customers. Ofcom ordered BT to reduce their prices but stopped short of demanding that customers were compensated. In January 2021, Law firm Mishcon de Reya filed a claim with the Competition Appeal Tribunal against BT worth £600 million, accusing them of historic overcharging on landlines. The class action law suit claims BT have increased their prices for line-only services every year since 2009, whilst the wholesale cost for delivering these services has reduced. The claimants suggest that customers could be entitled to compensation of up to £500 each.


Bidding rules violation

In 2020, BT was fined £6.3m by the telecoms regulator Ofcom for violating the law on a large public sector deal in Northern Ireland. Under Ofcom's regulations, the BT network shall handle all wholesale customers similarly. In its report, Ofcom found that BT's network violated the rules by failing to supply Eir with the same details on its on-demand fiber-to-the-premises offering as its own rival team.


See also

* List of telephone operating companies


References


Further reading

* Baldwin, F.G.C. ''The History of the Telephone in the United Kingdom'' (1925) * Foreman-Peck, J. "The development and diffusion of telephone technology in Britain, 1900–1940," ''Transactions of the Newcomen Society,'' (1991–92). 63, pp165–180. * Foreman-Peck, J., & Millward, R. ''Public and private ownership of British industry 1820–1990'' (1994). * Hazlewood, A. "The origins of the state telephone service in Britain" ''Oxford Economic Papers'' (1953). 5:13–25
in JSTOR
* * Johannessen, Neil. ''Ring up Britain: the Early Years of the Telephone in the United Kingdom'' (British Telecommunications plc, London, 1991) * Johnston, S. F. "The telephone in Scotland." in: K. Veitch, ed., ''Transport and Communications. Publications of the European Ethnological Research Centre; Scottish life and society: a compendium of Scottish ethnology'' (2009): pp. 716–72
online
* Magill, Frank N. ''Great Events from History II: Business and Commerce Series, volume 1:1897–1923'' (1994) pp 218–23; historiography * Meyer, Hugo Richard. ''Public Ownership and the Telephone in Great Britain: Restriction of the Industry by the State and the Municipalities'' (1907)
online
* Pitt, D.C. ''The telecommunications function in the British Post Office. A case study of bureaucratic adaption'' (Westmead: Saxon House, 1980). * Robertson, John Henry. ''The story of the telephone: A history of the telecommunications industry of Britain'' (1947) * *


External links

* * {{DEFAULTSORT:BT Group 1846 establishments in the United Kingdom 1912 establishments in the United Kingdom 1969 establishments in the United Kingdom 1981 establishments in the United Kingdom British Royal Warrant holders Companies based in the City of London Telecommunications companies established in 1846 Telecommunications companies established in 1912 Telecommunications companies established in 1969 Telecommunications companies established in 1981 British companies established in 1846 British companies established in 1912 British companies established in 1969 British companies established in 1981 Companies listed on the London Stock Exchange Internet service providers of the United Kingdom Multinational companies based in the City of London Telecommunications companies of the United Kingdom 1960s initial public offerings 1980s initial public offerings Former nationalised industries of the United Kingdom