Chief Executive's statement
BT has achieved much operationally over the past
year. We have continued to introduce innovative
products and services, such as Genie, our mobile
internet portal; we have continued to develop our
high-speed broadband network; and we have
continued to compete vigorously.
Now, we are moving swiftly to take
parts of the business via the IPO route
further action that will transform BT.
represents the best way ahead for the
Action that:
&
addresses the debt built up through
company.
As a result, we announced in May
pursuing our strategy;
our intention to demerge BT Wireless
&
accepts the realities of the market;
and so create two substantial companies,
&
continues the process of separation by
BT Wireless and Future BT.
lines of business;
&
&
creates two substantial listed
BT Wireless
companies; and
We plan for BT Wireless to include all of
keeps both companies focused on
our fully-owned wireless assets in the
growth opportunities.
UK and Europe, and Genie, one of
In April 2000, we began a radical
Europe's leading mobile internet portals.
restructuring of BT. We grouped some of
It should be a high-growth business,
our activities by market sector, rather
strongly positioned to develop third-
than by geography, to create BT
generation services by taking advantage
Wireless, BT Ignite, BTopenworld and
of its leadership in mobile data. It will be
Yell, four businesses with potential for
an independent wireless operator in a
high growth.
market which is consolidating.
In October 2000, we split
management of our UK communications
Future BT
services between BT Retail and BT
Future BT will combine four separately
Wholesale.
managed businesses, BT Retail, BT
And, in November 2000, we
to form a focused European network and
separate listings via initial public
retail group concentrating on voice and
o¡erings for BT Wireless and Yell. We
data services. Its aim is to create value
also stated our target of reducing our net
based on service excellence, its brand
debt by at least »10 billion by the end of
leadership, its large scale networks and
2001.
its existing customer base. It will also
Since then, stock market volatility
develop and market new, higher value
throughout the world, particularly in the
broadband and internet products and
telecommunications sector, has led us to
services.
reconsider whether selling o¡ equity in
06 BT Annual report and Form 20-F
Wholesale, BTopenworld and BT Ignite
announced our intention of seeking
on productivity and their own customer
pro¢les of each business ^ and this better
therefore, provide ownership of two
segments, and it gives each business
enables them to attribute value to each.
strong and separately quoted businesses,
more £exibility for forging partnerships
and the £exibility that gives
and strategic alliances. We are already
major task for BT, but I'm con¢dent that
shareholders. Although both companies
gaining distinct advantages from having
we can and will deliver. We're tackling
are expected to be major components of
our businesses up and running as
the issues that need to be tackled and
the FTSE 100, they will have contrasting
separate units. The action we are
we're moving forward.
¢nancial pro¢les: BT Wireless, high
planning now will enable us to build on
growth; and Future BT, well-established
this.
Your investment in BT will,
and cash generative.
The separation into distinct
This restructuring represents a
The greater transparency of the
businesses should also help investors
businesses gives our management teams
improve their understanding of each one.
greater focus and accountability.
They can assess the dynamics,
Sir Peter Bon®eld CBE Chief Executive
It enables them to focus hard
opportunities and contrasting ¢nancial
22 May 2001
``This restructuring represents a major task for BT,
but I'm confident that we can and will deliver.
We're tackling the issues that need to be tackled
and we're moving forward.''
Message from Sir Iain Vallance
Nearly all BT shareholders are BT
customers. And nearly all BT employees
Chairman of the BT group.
The group has been a front-runner
and shareholders, under the guidance of
Sir Christopher and the Board.
are BT shareholders. That exceptional
in the telecommunications world in
association between owners, employees
countless ways. That can be put down to
and customers has been a core strength
the talent and professionalism of its
of the organisation since it moved into
management and employees, and to the
Sir Iain Vallance President Emeritus
the private sector some 17 years ago.
loyalty of its shareholders.
22 May 2001
It has been a privilege for me to
BT has won through some turbulent
have been part of that association from
times in the past and I am con¢dent it will
the outset ^ for the most part as
do so again, with the support of its people
BT Annual report and Form 20-F 07