Tag: BT

BT fined for not listening to the deaf

Man uses an ear trumpetBritish Telecom (BT) has been handed an £800,000 fine from media regulator Ofcom for failing to offer adequate services for hearing-impaired customers.

The fine relates to BT’s failure to bring in its Next Generation text relay system from between April and September 2014. The system translates voice-to-text on various devices, including PCs, laptops, tablets and smartphones. It aims to help users have more natural conversations using speech and text.

Ofcom started to wonder why the new system had not been launched on the required date. It thought that the delay was a one-off, caused by problems with the sound quality of emergency calls, and had not caused financial harm to customers.

However it also pointed out that BT had been given 18 months to bring in the service, and had missed the deadline by five months.

Claudio Pollack, Ofcom’s consumer and content group director, commented: “The size of the penalty imposed on BT reflects the importance of providing an improved text relay service to its customers with hearing and speech impairments.”

BT needs to be sliced up

still_open_all_hours_6BT’s business rivals have called for the telco to be sliced up after having enough of the outfit’s monopoly like powers.

It all goes back to 2006, when Ofcom forced BT to set up Openreach as a separate division that manages its network infrastructure across the UK.

This was supposed to give rival telephone and internet service providers (ISPs) equal access to BT’s wide-reaching network of copper and fibre cables and promote competition.

The signs are that it more or less worked, but now, Sky and TalkTalk are urging Ofcom to split up BT and Openreach completely.

TalkTalk’s CEO Dido Harding says it’s “crucial” that Openreach is separated because it would encourage the subsidiary to focus exclusively on the quality of its network.

At the heart of the problem is the BT and EE merger because the pair will have too much influence over the UK telecoms market and reduce their level of investment in Openreach.

Sky holds a similar view saying that splitting Openreach and BT “is at the heart of creating a sustainable industry” that allows multiple providers to compete.

Ofcom just announced its second ‘Strategic Review of Digital Communications’ and since this was the first to led to the creation of Openreach, it is an opportunity for BT’s rivals to put the boot in.

Ofcom is expected to be releasing a “discussion document” this summer, but the regulator’s initial conclusions won’t be published until the end of 2015.

 

 

BT finalises EE take over

Kitten-Kong BT has finalised its deal to buy EE from Orange and Deutsche Telekom for £12.5 billion.

According to the International Business Times , the deal, is to be officially completed by the end of the year, will be settled in cash and shares.

While the deal has been rumoured for a while, it is now official.  It looks like once the agreement has been settled, the German Deutsche Telekom will have a 12 percent stake in the company and will be given the right to appoint one board member.

Orange will also get a four percent stake.

BT will raise £1 billion of the deal through issuing new shares and debt financing, with the view of making £360 million of capital expenditure in four years savings as a result of the deal.

BT CEO Gavin Patterson said: “This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them. The UK’s leading 4G network will now dovetail with the UK’s biggest fibre network, helping to create the leading converged communications provider in the UK. Consumers and businesses will benefit from new products and services as well as from increased investment and innovation.”

The deal comes after broadband providers have started to offer quad-play packages, providing customers with TV, broadband, landline and mobile services in one bundle.

BT will now join Virgin Media and TalkTalk, who already offer these deals to UK consumers.

CEO of EE, Olaf Swantee added: “Joining BT represents an exciting next stage for our company, customer, and people. In the last few years alone, we have built the UK’s biggest, fastest and best 4G network, significantly advancing the digital communications infrastructure for people and businesses across Britain.”

Following in BT’s footsteps is Sky, who struck a deal with Three Mobile last week to offer similar quad-play deals in 2016.

BT goes on hybrid fibre diet

Fruit-and-fibreBT has surprised everyone by announcing that it is deploying next generation hybrid-fibre across the United Kingdom from 2016/17.

Dubbed G.fast broadband technology, it will provide “most homes” with speeds of ‘up to’ 500Mbps  and there’s also a “premium” option for up to 1000Mbps.

At present most of BT’s national deployment is dominated by its  hybrid Fibre-to-the-Cabinet (FTTC) broadband technology, which delivers download speeds of up to 80Mbps by running a fibre optic cable to your local street cabinet and then using VDSL2 over the remaining / existing copper line from the cabinet to your home.

This works for properties that exist up to 400 metres away from their street cabinet, although the service has been known to reach 2,000 metres at a slower speed.

G.fast is similar technology but it requires more radio spectrum and needs to run over much less than 250 metres of copper. As a result the high capacity fibre optic line has to be taken even closer to homes, usually as far as a smaller remote node that can be built on top of a telegraph pole, inside a street cabinet or underground.

This is expensive, although BT should not need to dig up your garden or run a new physical line into homes.

BT conducted a field trial of mock-up G.fast technology earlier this year and on the shortest 19 metre copper line it managed to achieve aggregated speeds of around 1000Mbps or 231Mbps upload and 786Mbps download. By comparison the “long” 66 metre line produced 200Mbps upload and 696Mbps download.

There will be two pilots which will start this summer in Huntingdon and Gosforth with 4,000 homes and businesses participating to see if the technology scales up.

BT will set up G.fast from different points of its network, with the pilots allowing it to assess various rollout options. It is also planning to develop a premium fibre broadband service for those residential and business customers who want even faster broadband, of up to 1Gbps.

 

Hutchison to buy O2

PhoneConsolidation in the UK mobile industry is certain after Hutchison Whampoa said it will buy O2 for £10.25 billion.
O2 is currently owned by Spanish telco Telefonica.
Hutchison already owns the UK Three network.
O2 is the second biggest mobile operator in the UK, with around 22 million subscribers.
Just a few weeks ago we reported that BT entered talks with EE, with a view to acquiring it.
BT then ruled out buying O2. It is still in talks with EE over acquiring that business, with a view to becoming a dominant player in the UK market.
Hutchison more or less started off the mobile phone business in the UK with the launch of Orange.

 

Stop squeezing broadband BT!

 

pelosi-lap-dogBritish Telecom has been told off by the British regulator Ofcom which seemed to back complaints from smaller broadband provider TalkTalk that BT was abusing its dominant position in the way it priced the wholesale offering.

Ofcom said it would set up safeguards to make sure BT maintains a sufficient margin between its wholesale and retail superfast broadband charges which would allow rival providers to profitably match its prices.

BT has built a fibre network that has driven the uptake of broadband services, both by consumers and by rivals who rent the lines on a wholesale basis.

TalkTalk had complained there was not enough of a gap between wholesale price and the rate at which BT sold the product to retail customers, squeezing margins for competitors.

Under the new proposal BT would be allowed to set its wholesale fibre prices, but they must do it in such a way that others can compete profitably for superfast broadband customers.

“Ofcom’s indicative assessment is that BT is maintaining a sufficient margin under the new draft rules,” Ofcom said. “Therefore, the condition is a safeguard which limits BT’s ability to reduce retail margins in future, and ensures that any increases in BT’s costs must be reflected in its prices.”

 

Broadband essential to SMEs

oldphoneA survey has revealed that Britain’s small to medium enterprises (SMEs) still have worries about growing their businesses in 2015.
The survey, commissioned by TalkTalk Business, asked 1,000 British small businesses how optimistic they are about revenues and growth this year.
Of those surveyed, 27 percent are “very optimistic”, but of those remaining, 20 percent don’t think 2015 will be a bumper year.
Obviously TalkTalk has an agendum with this survey and the results showed close to 90 percent of the SMEs believed broadband connectivity is vital to their businesses.
The top five priorities the survey discovered for SMEs is that they wanted to grow revenues; improve their teams’ morale; expand their businesses; cut costs; and invest in new technology.
TalkTalk has launched a broadband package aimed at SMEs, and figures it has released claim that its business package is cheaper than BT Business Unlimited, Plusnet unlimited and Chess essential max broadband.

 

BT writes £12.5 billion cheque for EE

handsetBT has confirmed it will acquire EE in a move that will scare the beejeesus out of the UK mobile market.

Buying EE will give BT the biggest 4G network in the UK which it is says will complement its fibre network.

BT had been using EE’s network for its mobile virtual network operator deal, but hopes the deal will enable it to create a complete network for its customers so they are using its services, whether at home on fixed connections or on the go using the mobile services, or its existing WiFi services.

It also gets 24.5 million customers currently on the EE network.

We expect to see deals involving telephone, mobile phone, broadband and mobile services in one bundle.

BT accountants already think that they will save a pile through network and IT rationalisation as well as in areas of procurement, marketing and sales costs.

Still it is bad news for O2 which was touted to be the other company that BT was thinking of buying. The decision not to go with O2 will be a blow to the Spanish Telefónica which had been keen to flog its business unit in the UK.

If approved the deal will mean Deutsche Telekom as a 12 percent share in BT and a seat on the company’s board. Orange will take just a four percent share and will not have a seat on the board.

It is not all clear sailing though. The deal has to be approved by the Ofcom regulator.  While it is not likely to block the deal, the combined entity could be forced to dispose of some spectrum. BT’s Openreach and Wholesale units might have to be hived off from the main company.

 

BT censors sites without court order

russian censorsBT has started blocking access to 24 torrent sites this past weekend, including IPTorrents and TorrentDay.

It is the first time that a UK ISP has blocked private torrent sites, without a court order demanding it does it.

The High Court has ordered six UK ISPs to block subscriber access to dozens of the world’s largest torrent sites. The latest order was issued last month after a complaint from the major record labels. It expands the UK blocklist by 21 torrent sites, including limetorrents.com, nowtorrents.com, picktorrent.com, seedpeer.me and torlock.com.

Over the weekend, BT and Sky implemented the new changes, making it harder for their subscribers to reach these sites. But BT appears to have gone above and beyond the court order, limiting access to various other sites.

According to TorrentFreak several users of private torrent sites get an “error blocked” message instead of their favourite sites. These include the popular IPTorrents.com and TorrentDay.com trackers, as well as scene release site Scnsrc.me.

The fact that BT has targeted IPTorrents and Torrentday is significant. Both sites require prospective users to obtain an invite from a current member they have over a hundred thousand active users.

BT used the same error message that is returned when users to try access sites covered by High Court injunctions. It is also the first time that a UK ISP has ever blocked a private torrent site. It is also significant because it indicates that ISPs are now starting to accept that they are not safe havens and have to censor the web.

IPTorrents is still accessible via https and via the site’s alternative .me and .ru domains. In addition, VPNs and proxy servers are often cited among suggested workaround techniques.

BT in bid for O2. And EE

btlogoGiant telecomms firm BT confirmed it is in preliminary talks to buy O2 UK from Spanish giant Telefonica.

That’s something of an irony because BT spun off its Cellnet unit in 2002. It then renamed itself as O2 and sold itself to Telefonica for over £17 billion in 2005.

Telefonica confirmed a deal was in the cards and in a prepared statement said that it was in talks with BT. But it warned that “there is no certainty that a transaction will take place”.

The deal, however, is likely to be just for O2 UK, and may cost BT as much as £6 billion.  But, Reuters reports, BT is also talking to EE in the UK.

In a statement, BT agreed with Telefonica that talks were at a preliminary stage.

But that hasn’t stopped the price of BT’s shares shooting up on the Stock Exchange this morning.

BT: business doesn’t trust the cloud

Every silver has a cloudy liningA survey commissioned by BT showed that 70 percent of businesses worldwide are adopting storage and web apps in their organisations.

But they’re far from confident about cloud security, the survey revealed.

Over three quarter of the IT decisions makers surveyed said security is the main problem about using cloud services.  Half of the respondents said they were “very” or “extremely” anxious about security surrounding their cloud services.

Half think enterprise cloud apps and services are too expensive. Half think trusting third parties a problem while as many as 40 percent think all cloud services are inherently insecure.

Why is BT interested in this? Well, you’ve guessed it –  BY has its own portfolio of cloud products and services which is – yes, you’ve guessed it again, inherently secure.

The survey was carried out for BT last July with 640 IT decision makers in the UK, France, Germany, Spain and other countries.  The companies each has 1,000 plus employees.

Virgin too fast and loose for ASA

rbransonAdvertising watchdog, the Advertising Standards Authority (ASA) has banned a TV, website and several press adverts for Virgin Media’s cable broadband service saying that they were misleading punters.

Rivals BT and Sky Broadband (BSkyB), moaned that the Virgin promotions “misled” consumers by claiming the service offered Internet download speeds that were “5x faster than Sky and BT’s regular broadband”.

Virgin Media’s TV promotion claimed that customers would be able to “download five times faster than BT’s regular broadband. It invited viewers to visit virginmedia.com/ourspeeds “for verification“.

BT said that the webpage in question did not provide sufficient information for viewers to verify the comparison that had been made.

Both BT and Sky Broadband complained against several almost identical claims made in other ads. Both ISPs described the “5x faster than Sky and BT’s regular broadband” claim as “misleading”.

They said that not all Virgin Media customers would always be able to “download 5x faster” than Sky’s and BT’s broadband customers.

Virgin Media and its advertising partner, Clearcast, felt that the webpage listed above did provide “all of the necessary information to allow viewers to verify the comparisons” and that the “5x faster” statement would understood by viewers not to be “absolute”.

The ASA disagreed and concluded the information provided was not sufficient to ensure the details of the comparison could be verified.

In its ruling it said that while consumers were likely to be aware that the speed of broadband services would vary according to factors such as the time of day, claims that consumers would be able to “download 5x faster than Sky and BT’s regular broadband” were not in conditional language.

It was considered they were likely to be understood to mean that Virgin’s superfast service was always five times faster than Sky’s and BT’s regular services, even when normal variations such as the time of day were taken into account, the ASA said.

As a result, Virgin Media has unfortunately seen a bunch of its adverts banned in their current form and the provider has once more been told to “ensure they provided sufficient information about comparisons to allow them to be verified” and warned to stop making absolute claims if they could not be proved.

NHS doctors try to extract Ellison’s backbone

skeletonsThe NHS has purged the Oracle backbone from a national patient database system and recommended a course of Open Sauc NoSQL running on an open-source stack instead.

Dubbed Spine2, the new Ellison free backbone has gone live on x86 hardware.  Spine is the NHS’s main secure patient database and messaging platform.  It is a bit of serious technology logging the non-clinical information on 80 million Brits.

It also runs a messaging hub between 20,000 applications that include the Electronic Prescription Service and Summary Care Records.

The first version of Spine had run on Oracle under an out-sourced contract managed by telecoms giant BT, but the Health and Social Care Information Center (HSCIC) – the NHS organisation running the system thought that open source and NoSQL will be easier to live with.

Oracle’s relational database has been replaced with a NoSQL distributed system called Riak, from Basho.

Other open-source elements are Redis, Nginx, Tornado and RabitMQ while Splunk has been used for logging and reporting.

The Spine2 contract was awarded under the Cabinet Office’s G-Cloud framework, which encourages government types to buy from small providers like Basho.

It seems to have been much cheaper too some of that is not having to pay an Oracle license, or a maintenance fee, but some of it was also managed by consolidating the hardware.

Riak is up to two times cheaper than Oracle while the infrastructure will cost five per cent that of the old setup.

What is also odd is that HSCIC has saved money by bringing Spine2 back in house with on-going development. This is bad news for BT, but could be the start of a backlash against open sourcing.

 

Public sector outsourcing drops

kcalmAccording to research outfit Information Services Group (ISG), the public sector outsourcing market in the UK has taken a massive hit in the first half of the year. The ISG Outsourcing Index for EMEA found just €2 billion of outsourcing activity in the UK for the first half of the year. Last year the market was worth €4.6 billion.

However, Britain still leads the way when it comes to public sector outsourcing in Europe. The whole EMEA market for the first six months of was just €2.3 billion compared to €3.1 billion last year. In other words, the UK accounted for five sixths of all public sector outsourcing in EMEA this year.

The ISG figures track all outsourcing contracts with an annual value of €4 million or more. They include IT contracts, business process outsourcing, back office processes, but IT dominates with more than two thirds of all contracts. Public sector outsourcing now accounts for 41 percent of all outsourcing activity in EMEA, with Britain in a clear lead.

The top 15 companies winning these lucrative contracts are Accenture, AECOM, Arqiva, Arvato, BT, Capgemini, Capita, CSC, Grupo Ferrovial, HP, Interserve, QinetiQ, Serco, Thales and Tieto.

Livingston quits BT to become minister

Livingston_1404861cBT CEO Ian Livingston has quit as chief executive of the telco to become Britain’s new trade minister.

Livingston, 48, will replace Lord Green as the Minister of State for Trade and Investment and he will be replaced by Gavin Patterson, boss of the company’s retail business.
In a statement Livingston said that the change of career was not in his plans or my timing but it is something really important.

“If someone said to me six weeks ago I’d be doing this, or even four weeks ago, I’d have been extremely surprised.”

Blighty PM David “own is an ordinary bloke” Cameron called Livingston an “outstanding business leader”.

“I know that he will make an invaluable contribution to this agenda as the Government continues to open new trade links and grow British exports”.

Livingston will step down from BT in September and take over the unpaid role in December.

“It is not just about the big corporates, I want to help more SMEs to get exporting. We are still a great trading nation and the more we trade, the better,” he said.

Livingston joined BT and hacked a £28 billion debt pile, cut costs and tackle increased competition.
It will be an interesting change of tactics from Livingston who has been very vocal about the gap between government policy and the delivery in recent years.

His replacement Gavin Patterson was the brains behind BT’s pay-TV push.