Communicate EU BT European Affairs Newsletter • April 2012 • www.bt.com/europeanaffairs Fibre technology deployment for next generation broadband several points of concern on the suggested policy approach: BT is deploying high speed broadband at scale and pace, and at one of the fastest rates in Europe. We are investing £2.5bn (c. €3bn) to reach two-thirds of the UK population in 2014. A further £830M (c. €1 bn) of UK Government money, plus local council funds, for which BT and other operators will compete, should extend coverage to about 90 per cent. We are trialing alternative technologies to reach the last 10 per cent such as TV White Space and LTE. We have also worked with EU ‘matched’ funding and local partners to bring these services early to Northern Ireland and Cornwall. Most of our customers will be on fibre to the cabinet (FTTC), with speeds up to 80Mbps in 2012, and up to 20 Mbps upstream. Our fibre to the premises (FTTP) service will upgrade to 300Mbps in 2012, with 1Gbps in trial. The UK approach has a number of important characteristics which could usefully be considered elsewhere in Europe: An evolutionary approach to technology, Competing networks, Active wholesale access, Non-discrimination and the targeted use of public funding. There are several direct policy implications for the EU. As well as focusing on the issues above, we believe the Commission should, for instance, prevent monopolies, stimulate demand by encouraging compelling content, and maintain a stable regulatory approach based on established principles regarding asset valuation and cost orientation. Given this perspective, we responded to the EC’s consultation[1] on costing methodologies for high speed broadband, and stressed • Denying companies the appropriate recovery of costs relating to copper access, including on sunk and fixed assets, will deter investment in fibre assets. • The concept of conditional pricing of different products – reducing copper prices as a remedy to promote fibre investment – is contrary to the established practice of the European framework. • The economic case for fibre depends on a fair return on investment, and our deployment in the UK demonstrates how investment and open competition can go hand in hand without the need for additional regulatory intervention. • We also challenge the assumptions around effecting a transition from copper to fibre. Technology changes mean FTTC is increasingly able to meet the Digital Agenda targets and copper will have a permanent role in the network. Copies of BT’s detailed responses to the EC consultation documents in 2011 on costing methodologies for key wholesale access prices and on non-discrimination obligations are available in PDF format on request. [1] BT to launch FTTP on demand More homes and businesses across the UK will be able to access fibre broadband at speeds of up to 300Mbps. As a result of a technology breakthrough the company is launching a new service FTTP on demand – which means its ultrafast fibre to the premises service could be made available anywhere in BT’s fibre footprint where a customer requires it. Previously, FTTP speeds weren’t possible in fibre to the cabinet (FTTC)enabled areas. The launch of FTTP on demand follows successful trials in St Agnes, Cornwall – and BT says it will conduct further trials this summer with a view to making the service commercially available by spring 2013. Openreach to double fibre speeds from April Openreach is to double the speed of its new Fibre to the Cabinet (FTTC) broadband for UK communications providers (CPs) from April. The new, faster product will deliver downstream speeds of up to 80 Mbps and upstream speeds of up to 20 Mbps. Investing in the future In this edition we turn the spotlight on progress across a range of BT services in the UK and Globally. From April we are offering major increases in speed across our expanding fibre network, and trials of the innovative new Fibre on demand service could bring speeds up to 300Mbps to customers. Beyond the UK, BT Global Services is expanding its footprint across Turkey, the Middle East and Africa, offering new network capabilities and Cloud-based services. And looking ahead to the Olympics, BT is preparing for the most connected games ever, with ‘London 2012’ only a few months away. BT is committed to invest in new networks and services, and this edition of ‘EU Communicate’ also looks at the current EU policy debate around the balance between competition and investment, and the regulatory approach to Next Generation Access. Adrian Whitchurch, VP European Affairs IN THIS ISSUE: BT HOME HUB • RETAILTOPIA • GLOBAL SERVICES • LONDON 2012 BT European Affairs Newsletter • September 2011 • www.bt.com/europeanaffairs BT first in world to achieve carbon emission standard BT’s Home Hub is among products given the carbon emission seal of approval. Carbon reduction • • BT has been instrumental in setting up an initiative to develop guidance on how to assess the greenhouse gas emissions of various ICT services, such as telecoms network services and desktop managed services. The GHG Protocol Product Standard ICT Sector Guidance is being developed by a number of ICT companies and other interested stakeholders in collaboration with the Carbon Trust, the World Resources Institute (WRI), the World Business Council for Sustainable Development (WBCSD) and the Global e-Sustainability Initiative (GeSI). • Carbon footprinting is an important part of BT’s pursuit of carbon reduction opportunities, including its supply chain and portfolio of products and services. • BT is committed to a number of major initiatives to lower its energy consumption, like integrated energy management, to reduce its carbon intensity by 80 per cent by 2020, compared with 1997 levels. BT has become the first company in the world to test its products to ensure they measure up to a carbon emission standard. BT’s top consumer products - the BT Home Hub, the BT Vision+ digital set-top box, and the BT Graphite 2500 DECT phone – have had their carbon footprints independently verified by the Carbon Trust to the new GHG Protocol Product Standard. It enabled BT to understand the full-lifecycle emissions for these products, according to Gabrielle Ginér, BT’s environmental sustainability manager. She said: “We are really proud to be the first company to achieve this. “It has helped to give us a sense of the size and scale of the carbon impact and will allow us to focus our carbon reduction activities on where they will make the most difference.” Game on BT is helping to bring a revolution in video gaming to the UK. Thanks to its partnership with US-based cloud gaming pioneers OnLive, BT is the first UK internet service provider to offer customers the chance to play on-demand video games from their HDTV, PC, Mac and tablet, powered by BT broadband. Cloud gaming is the latest trend in the gaming industry. It allows gamers to instantly access the games they want – wherever they want – without the need for expensive hardware or downloads. Video games are run on remote servers and streamed across the internet to gamers with broadband connections faster than 2Mbps. There’s also a range of social features you’d expect playing online such as watching thousands of other people play games live, with voice chat and Facebook integration. John Petter, BT Retail’s Consumer managing director, said: “This is a great new service for the UK. “It’s yet another reason for customers to choose BT for their broadband – and our super-fast, up to 40Mbps BT Infinity fibre broadband is ideal for OnLive gaming.” Star wars & BT tower STAR Wars came to the BT Tower in London as the iconic landmark was transformed into the world’s biggest lightsaber. A 700m-high solid blue beam – created by BT engineers using 15 4,500-watt lights, and designed to look like the famous Jedi energy sword used by Luke Skywalker – could be seen rising from the tower to mark the release of the sci-fi series on Blu-Ray. Jared Ruddy from the BT brand team said: “It’s only fitting that BT Tower, one of the world’s most iconic landmarks, should play such an important part in helping London to celebrate one of the world’s bestloved film sagas.” BT European Affairs Newsletter • September 2011 • www.bt.com/europeanaffairs BT puts future shopping experience in the spotlight • Physical stores will still have a vital role, increasingly focused on complementing digital channels. • Retail experiences will become more customised, personal and interactive. • The most successful retailers will have slashed customer waiting times both in-store and for online delivery. • Wireless enabled in-store environments will help retailers connect in helpful ways with customers while shopping, releasing staff from tills and empowering customers to actively use personal mobile devices. • Retailers will use on-demand cloudbased services to reduce operating costs, enable staff to be more effective and delight customers. A panel of retail, payment and consumer experts – led by London Business School Professor Patrick Barwise, Chairman of Which? – has unveiled a vision for British retailing in 2020. Professor Patrick Barwise, chair of the Retailtopia panel 1, said: “The UK is already a global leader in online shopping, with nearly £30 billion of sales coming through this channel in 20112. But retailers face tough challenges in the current economy. There’s a danger that a focus on shortterm profitability and reduced investment in innovation could damage our longterm ability to create the best shopping experience in the world and ensure that we’re still a global leader in 2020.” Emer Timmons, President of BT Global Services UK, said: “Networked technology has a huge role to play in delivering the next generation of retail - from the warehouse and stockroom, to the store, home and mobile device. The ability to shop for anything, anytime, anywhere will mean retailers demand significantly more from their IT infrastructure and that will show the true potential of superfast broadband in powering business success.” World communications awards BTGS continues to enhance its global reputation by winning awards and positive analyst coverage around the world. The highlight was winning the Best Global Operator prize at the World Communications Awards for the second year running. Global Government president Neil Rogers accepted the award at the London ceremony. Chief executive Jeff Kelly said: “It’s a tribute to the hard work and dedication of everyone in BT.” Other awards won in 2011 included: • Best Managed Service Provider, Telecom Asia Awards (also for the second successive year) • Cloud Computing Innovation of the Year for BT Radianz, Financial Sector Technology Awards • Sustainability award for health network N3, Guardian Public Service Awards. The year 2011 was also a good year for recognition from industry analysts. Gartner gave positive vendor ratings to both BT and BTGS. They also positioned BTGS as leader in their influential 2011 Magic Quadrant reports on global providers of communications outsourcing and professional services, and of pan-European, Asia Pacific and global network services. The ‘Retailtopia’ vision looks beyond the huge short-term challenges facing the retail sector and suggests a positive future for British shopping in an increasingly internet-connected and mobile society. BT Global Services announces major expansions BT is to expand operations across Turkey, the Middle East and Africa with the aim of doubling its business in these regions and creating 170 new jobs. The Prosperity for the Middle East and Africa programme has been announced in Dubai. BT Global Services chief executive, Jeff Kelly, said: “The Middle East already hosts some of the world’s main business hubs, and is a crucial region for many of our customers. “New opportunities are rapidly emerging in the region, and we are now expanding from our thriving base in the United Arab Emirates. “Turkey is a key business bridge between Europe, Asia and the Middle East and is growing rapidly. “Sub-Saharan Africa remains largely a new frontier for ambitious businesses and is currently showing strong growth rates in a number of countries. “We are extending our network capabilities in that region beyond our strong South African operation, with the ambition of serving our customers wherever they seek new opportunities. “We are also seeing the emergence of a new generation of local companies in these regions, eager to expand globally.” BT already serves around 600 large organisations in the regions, including many of the world’s leading global companies. It builds on similar growth initiatives that were announced for Asia and Latin America, where BT is going to doubling its business in key countries over the next three years. There will be 250 new staff, new centres of excellence and a wide range of network and customer service improvements. BT European Affairs Newsletter • September 2011 • www.bt.com/europeanaffairs BT trials access to its customer services in British Sign Language (BSL) BT has long advocated that business should provide different methods by which their customers can contact them in a way that suits them. BT already provides a range of options: email, textphone, live chat as well as the traditional phone and letter. We extended the options and launched a trial to enable customers who prefer to communicate in BSL to contact us in BSL. The technology behind the trial is provided by southeast London-based social business, SignVideo, which is led and run by deaf people. Access to BT customer services from anywhere in the UK has been made available through SignVideo’s web-based solution – BSL LIVE. SignVideo believes that this is the first time a FTSE 100 company has offered sign-language relay. Customers need to have a computer with video capability and broadband. Calls are free of charge, as it is to call any BT customer-service number. Communications Minister Ed Vaizey, said: “This trial will offer people who are deaf and hard of hearing a greater choice in how they contact BT. I hope other organisations will recognise the importance of BSL and offer it as a way to communicate with them.” BT supports national telehealth and telecare campaign Paul Burstow, recently announced that the Department of Health would be working with four leading trade associations to make the 3millionlives vision a reality. BT’s telehealth lead, Angela Single, is chair of the ‘3millionlives’ Working Group, which is working with the Department of Health on the 3millionlives campaign. BT is supporting a national campaign to rollout telehealth and telecare services to more than three million people over the next five years. The ‘3millionlives’ campaign will extend the reach of telehealth and telecare to improve the lives of people with long term conditions and social care needs. Health Minister, Communications will be key for London 2012 The four industry trade associations taking part in the 3millionlives campaign are the Telecare Services Association, the largest telecare and telehealth specific industry body in Europe, representing over 340 organisations; Intellect, representing the IT sector; Association of British Healthcare Industries, the industry association for the UK medical technology sector; and Medilink UK, the life sciences industry organisation with specific interest in telehealth and telecare. London 2012 will be the first post i-Phone launch Games, and be the most connected Games ever. BT chairman Mike Rake spoke at a session of the World Economic Forum in Davos, Switzerland. The topic for the session was: The Olympic Games: More than a Medal, and other speakers included Sebastian Coe, chairman of the London Organising Committee of the Olympic and Paralympic Games (LOCOG), Mayor of London Boris Johnson, and Jacques Rogge, president of the International Olympic Committee. Mike said: “The Games presents a set of unique challenges - the ultimate right first time project with a global audience of four billion people. “BT has a critical role to play in the Games’ success - every image from the Games, every sports report, every visit to the London 2012 website and millions of calls, emails and texts will be delivered over BT networks. “We are enormously proud to be involved, but of course our commitment as a tier-one partner was made for sound commercial reasons.” How to contact us Adrian Whitchurch VP European Afairs + 32 2 237 1718 adrian.whitchurch@bt.com Till Kupfer VP Trade and International Affairs +33 2 237 1713 tilmann.kupfer@bt.com Henk Mannekens European Regulatory Manager + 32 2 237 1757 henk.mannekens@bt.com © British Telecommunications plc 2011. Registered office: 81 Newgate Street, London EC1A 7AJ. Registered in England No. 1800000. Produced by BT Group Communications. Designed by Tag. Printed on recycled paper.