Communicate EU BT European Affairs Newsletter • March 2014 • www.btplc.com/Thegroup/UKPublicAffairs/EuropeanAffairs/EuropeanAffairs.htm Challenges ahead The articles covered in our latest EU Communicate illustrate the challenges ICT companies are taking on, and prove how ICT is permeating society. In this edition we take a look at: Subsea cables connecting Scotland; Child online protection tools; supporting Big and Small business in the real-time economy in the UK and Asia; the TTIP agenda (Trade); providing world class Broadband at competitive prices. BT’s honouring of Tommy Flowers (19051998) shows how Innovation and engineering excellence have been in our genes for many decades. Adrian Whitchurch, Vice President of European Affairs Making a success of TTIP communications markets. Effectively removing access bottlenecks to electronic communications networks would cut the costs of ICT to businesses and consumers and promote competition, innovation, jobs and growth. BT is enthusiastic about the opportunities a Transatlantic Trade and Investment Partnership (TTIP) can offer. For BT, the U.S. market is the most important national market outside the UK and comes second after the EU as a whole. We have made considerable investment in the U.S., where we employ over 2600 people. A comprehensive trade deal will have to focus on non-tariff barriers, regulatory alignment and mutual recognition in key areas. This will drive growth and jobs across many sectors including ICT. Once the agreement is fully implemented, TTIP could bring significant economic gains of €119 billion a year for the EU and €95 billion a year the US. In BT’s view there are three essential areas for a successful TTIP treaty: The EU and U.S. need to address material problems arising from divergences in regulation and standard setting, particularly in the high tech area. These cause substantial competitive imbalances between EU and U.S. businesses. Specifically this includes remedying the regulatory asymmetry of the two electronic Public and government procurement both within the EU and at US federal and state levels should be mutually opened up to ensure fair reciprocal access to contracts and business generally benefitting citizens and competition. But this opening of Public Procurement markets has to go hand-in hand with the removal of the relevant sectoral barriers. A Trans-Atlantic Innovation agenda in emerging new areas should promote ‘light touch’ regulatory principles capable of implementation in a similar or mutually compatible way in the EU and the U.S. The innovation areas most suitable for such a mutual effort include: nanotechnology, cloud computing, data privacy, trans-border flow of ICT services, cyber security, smart grids and e-mobility. UK outperforms on superfast broadband The UK is outperforming the major European economies on key measures for superfast broadband, according to an international benchmarking study by Analysys Mason. The BTcommissioned report, International benchmark of superfast broadband, reveals that the UK is ahead of its European peers on measures such as coverage, take-up, average speeds and prices – boasting the most competitive broadband market out of all countries featured in the report. The report presents factual data up to 2012 alongside Analysys Mason’s forecasts to 2018. The research shows that with more than 70% of premises able to access superfast broadband at the end of 2012, the UK already leads France, Germany, Italy and Spain in terms of availability – and the report predicts it will be among the best-performing countries globally by 2018. Analysys Mason Partner Matt Yardley said: “The UK does very well on most superfast broadband benchmarks today, and by 2018 it will continue to outpace its major European competitors and even outperform Japan and the USA on some measures.” The benefits of TTIP would not be at the expense of the rest of the world. On the contrary, the positive impact on global trade and income has the potential to increase GDP in the rest of the world by almost €100 billion. The EU and the US will be able to work together towards better trade rules and less regulatory divergence between them in the future. Some of the reductions achieved in the cost of doing trade will also benefit other partners. IN THIS ISSUE: CHILD ONLINE PROTECTION • GLOBAL SERVICES • OPENREACH • TECH STARTUPS BT European Affairs Newsletter • March 2014 • www.btplc.com/Thegroup/UKPublicAffairs/EuropeanAffairs/EuropeanAffairs.htm BT filter helps protect children online The network-based filter – BT Parental Controls – covers all internet-connected devices in the home and is free for all BT consumer customers. While BT has offered free parental controls to its customers for years, until now the protection has focused on desktop computers and laptops. The new controls cover any internet-enabled device using home broadband, from PCs, laptops and games consoles to tablets and smartphones. Pete Oliver, BT Consumer commercial marketing and digital managing director, said: “BT takes the issue of online child protection extremely seriously and we are very pleased to be able to launch the wholehome filter to help parents keep their families safe online. BT awards multi million subsea cabling contract “It adds to the many tools we already make available for free to our customers. We’ve been focused on the issue of online safety since we developed the world’s first Cleanfeed filter to block child abuse images and made the technology available free to other ISPs across the world a decade ago.” New customers will have to make a choice on whether or not to activate the parental controls when setting up their internet connection for the first time. The new controls have been tested in trials with a variety of different customers and help from interested groups such as Mumsnet, the UK’s biggest network for parents. BT and other major ISPs have set up a marketing campaign, Internet Matters: Learn about it. Talk about it. Deal with it, to increase awareness and education around online safety for children. BT has awarded a £26.9 million contract to help deliver fibre to the Highlands and Islands. Three firms were awarded the subsea cabling contract and specialist vessels will lay 20 fibre optic submarine cables in a precise operation during May to October. This will provide a fibre broadband backbone which will eventually link communities from Kintyre to Orkney. The longest cable will run from Ullapool to Stornoway Telecoms deals are cheapest in UK UK consumers receive the cheapest telecoms deals in Europe and the US, according to a new report from industry regulator Ofcom. The findings are included in Ofcoms’s ninth International Communications Market Report. Compared with French, German, Italian, Spanish and US consumers, those in the UK BT’s new filter covers all internet-connected devices in the home. The massive engineering effort is part of the £146 million investment project launched with Highlands and Islands Enterprise (HIE) in March to bring highspeed fibre broadband to communities As well as committing £1.5m directly to a joint marketing fund, BT is providing more than £7.8m worth of its own marketing activity and development spend next year alone. across the north of Scotland. The longest cable will run for nearly 79km under the Minch from Ullapool to Stornoway. Director of Digital Highlands and Islands HIE’s Stuart Robertson said: “The subsea cables are an essential part of bringing high-speed broadband to our west coast communities. “Their installation is essential in order to reach the 84 per cent coverage target for the region. The fibre network will bring services closer to everyone and will make it easier to provide better broadband to even our hardest to reach areas.” can take advantage of consistently cheaper access to mobile phone, landline telephone and broadband deals. For its study, Ofcom created five typical household profiles to get the most accurate picture of what people need to spend in each country to get the best deals, ranging from low use household with basic needs, through to an affluent household that uses lots of communications services. The UK emerged as either the cheapest or second cheapest in four out of five of the profiles. IN THIS ISSUE: BT HOME HUB • RETAILTOPIA • GLOBAL SERVICES • LONDON 2012 BT European Affairs Newsletter • March 2014 • www.btplc.com/Thegroup/UKPublicAffairs/EuropeanAffairs/EuropeanAffairs.htm European businesses have need for speed A BT-commissioned study suggests that business processes are becoming more and more interconnected and running faster. In some cases they have almost reached real- time speed. The study produced by Experton is called ‘Real-Time Economy - Promise and potential of instant processes for a better future’. A third (32.8 per cent) of the senior decision makers surveyed said they had experienced significant acceleration over the past 24 months. But only 22.4 per cent of them said they are in a position to cope with the future challenges of the real-time economy. European companies find their business processes are dramatically accelerating, reveals research for BT. Two awards for BT’s flawless London 2012 BT won Project of the Year at the World Communication Awards 2013 and Technology Project of the Year at the V3 Technology Awards. The World Communication Awards, organised by the publishers of Total Telecom, The vast majority of surveyed executives agreed their organisations need to evolve and become faster, interconnected businesses. are judged by an independent panel of leading communication industry experts. The judges’ comments for BT’s winning entry state: “Delivery and performance was impeccable, with core network availability at 100 per cent and no major faults or security breaches.” The judges also said: “As the first ever official communications services partner in the history of the summer games, they [BT] designed and delivered a single integrated voice and data communications network. “Seven times the bandwidth for Beijing, it carried every official photograph and sports report, millions of phone calls, emails, texts and tweets from journalists, organisers and competitors.” Tanuja Randery, BT Global Services’ president of strategy, marketing, communications and growth, accepted the award on BT’s behalf. Nearly sixty per cent (58.3 per cent) of executives foresee that the increasingly mobile lifestyle of employees and customers will become the number one driver within the next two years - with ubiquitous real-time access to data and applications. Chief executive of BT Benelux Joris van Oers said: “The survey shows that only a few European companies are able to effectively do business with the speed that is required to compete in today’s global economy. “Response times need to get shorter, risks have to be detected earlier and business processes must be optimised accordingly. This is a world where nanoseconds can have an impact.” New chief executive for Openreach Joe Garner is to be the new chief executive of Openreach, joining the company in February. He will replace Liv Garfield who is leaving to become chief executive of Severn Trent. Joe brings substantial commercial, operational and regulatory experience, having worked for many years at HSBC, Dixons and Procter & Gamble. His most recent role was at HSBC where, as head of the UK Bank, Joe helped lead HSBC successfully through the financial crisis. Joe said: “I am thrilled to be joining Openreach at such a critical moment – a moment when technology is redefining how our society communicates. BT retains market lead in Asia Pacific BT has maintained its ranking as a market leader in the Asia Pacific region, according to a new study. IDC underlines BT’s commitment to the region through continued investments in networks, services portfolio and people. It’s the fourth consecutive year that analyst IDC has recognised BT’s strategy, capabilities and momentum in the region. IDC specifically highlights BT’s strengths in a number of key areas, including differentiation through vertical sector knowledge; taking the lead in innovation in the region; continuing to build a local customer base; and delivering strong professional services capabilities. The IDC MarketScape: Asia Pacific NextGeneration Telcos – ICT Services 2013-2014 Vendor Analysis once again ranks BT as a leader. IN THIS ISSUE: BT HOME HUB • RETAILTOPIA • GLOBAL SERVICES • LONDON 2012 BT European Affairs Newsletter • March 2014 • www.btplc.com/Thegroup/UKPublicAffairs/EuropeanAffairs/EuropeanAffairs.htm Top role for BT man in panEuropean initiative Paul Jenkins of BT Technology, Service & Operations takes up his role this month as director of the new London node of the European Institute of Innovation and Technology (EIT). Paul explained: “The EIT ICT Labs project aims to drive European leadership and innovation in information communication technology to help boost economic growth and quality of life.” The London node – which extends the scope of EIT ICT Labs into the UK for the first time – is joining six others in a European network of nodes located in Berlin, Eindhoven, Helsinki, Paris, Stockholm and Trento. Paul Jenkins will head up a new UK innovation centre BT’s fellow founding partners of the London node – which will be based at Imperial College’s new campus in west London – are Imperial College itself, IBM, the Institute for Sustainability, Intel, University College London, the University of Edinburgh, and Vodafone. BT honours telecoms pioneer Tommy Flowers BT has unveiled a bronze bust of Tommy Flowers to honour the life and legacy of the telecoms pioneer. A bronze bust of Tommy Flowers was unveiled The unveiling at Adastral Park in Suffolk was hosted by Clive Selley, BT Technology, Service & Operations chief executive and Group chief information officer, and Tim Whitley, BT managing director of research and innovation, and attended by members of Tommy’s family. The event coincides with the 70th anniversary of Tommy’s invention, Colossus, the first programmable computer. The bust depicts Tommy in his 30s, the period in which he built Colossus. Suzi Williams, BT Group brand and marketing director, said: “The Tommy Flowers sculpture is truly world class and will inspire generations of BT people at Adastral Park to be the best they can be and make a difference. All of us should be extremely proud of Tommy and his legacy.” Tommy joined the telecoms branch of the General Post Office (GPO) in 1926 and worked at the GPO research station at Dollis Hill. Colossus successfully broke the Lorenz cipher used by Hitler and the German High Command during the Second World War. It went on to provide intelligence that proved critical to the success of the D-Day landings and made a significant contribution to the Allied war effort. BT backs government programme to help small businesses thrive BT and TechHub Provide Boost to Tech Startups The technology startup community is being a given a much-needed boost and the chance to create new applications and services for the superfast broadband market, after BT and TechHub today partnered to launch the BT Infinity Lab programme. BT and TechHub - which creates spaces around the world where tech entrepreneurs can meet, work, learn and collaborate - are asking tech entrepreneurs to design and present innovative new uses and product prototypes, which will help internet users take advantage of superfast broadband. BT is looking for new applications and services that can be marketed alongside BT’s existing products. The winning entrepreneurs will receive six month’s support from BT, including access to knowledge and expertise from a wide range of areas, including research and development, engineering, legal and marketing. Winning start-ups will also gain membership at TechHub’s sold out community space in the heart of East London’s ‘Tech City’, offering business support, workspace and an international community of entrepreneurs exclusively for the tech industry. Jean-Marc Frangos, BT’s MD External innovation said: “At BT, we embrace an open innovation approach, working with industry and academic partners to diversify our product and service offering and develop new customer experiences. With this partnership, we are pleased to further extend our global innovation network and actively engage with the tech start-up community.” BT will also launch the Tommy Flowers Scholarship for students in Suffolk, as well as the Tommy Flowers Award for Commitment to Computing. IN THIS ISSUE: BT HOME HUB • RETAILTOPIA • GLOBAL SERVICES • LONDON 2012