Other BT PLC sections
 

Purpose & strategy

Our strategy is continuously evolving to ensure we build on our strengths and allow us to respond to market opportunities and challenges.

This year we have evolved our strategy to focus on converged connectivity and services.

Well positioned to drive sustained growth in value

We have a strong set of assets, including a leading position in the UK in fixed and mobile access networks, with strong and clearly segmented brands. We have deep relationships with a wide range of customers including 30m consumers, 1m businesses and around 1,500 multinational corporations. We also enjoy close strategic partnerships with key content, technology, device and service vendors.

Combined, this means that we are uniquely positioned to lead network, product and service convergence across the consumer and enterprise markets, which we see as a critical market trend and an opportunity to drive further value for our business.

Navigating a demanding environment

Like all businesses, we must continually adapt to our market environment. Data consumption and network capacity requirements are increasing exponentially and our enterprise customers want to migrate from legacy communications products towards digital, converged and secure products and solutions. Competition remains intense across the sector from both established and new entrants.

We are also seeing a new wave of infrastructure investment in fibre-to-the-premises and mobile coverage and technology. And recent regulatory outcomes are reducing Openreach’s returns towards its allowed cost of capital.

Our strategy

The diagram below shows the main elements of our stratgey and how they work together to support our purpose and goal.

2018 strategy

 

1. Deliver differentiated customer experiences

We will further differentiate our propositions, to retain and expand value. We’ll do this by creating innovative new propositions, improving value for money, offering better service, and making it easier to do business with us.

We’ve made progress with customer experience in recent years, but there’s much more to do.

girl reading in bed

 

2. Invest in integrated network leadership

In UK fixed, we’ll drive take-up of our superfast network and accelerate our investments in ultrafast through fibre to the premises to 3m homes by 2020 and through Gfast.

In UK mobile, we’ll expand our leadership in 4G coverage and capacity, and we intend to lead the market to 5G too.

Ultimately our aim is to build a single, integrated all-IP fibre network. Our investment will allow us to progressively close down legacy products such as the public switched telephone network, lead the market in advanced digital products, improve customer experience, and reduce our operating costs.

lady working in office

 

3. Transform our operating model

We’re creating a more lean and agile organisation, with a simplified operating model, and more straightforward decision-making.

The steps we’re taking to achieve this include:

– simplifying our operating model by creating four customer-facing units focused on Consumer, Enterprise, multinational corporations through Global Services and fixed access networks through Openreach

– having fewer, bigger, more accountable leadership roles and simplifying and delayering our management structures

– accelerating the delivery of Digital GS, introducing new digital products with a greater focus on our top global customers

– reducing inefficiencies from being housed in numerous sites across the UK to focus on around 30 modern, fit-for-purpose sites to create a more collaborative, open and customer-focused working culture

– move from buying to strategic sourcing, consolidating our spend and standardising our products

– make better use of digitalisation to improve customer-experience and reduce costs to serve.

Woman working in office