In 2001, BT had just three problems, says Sir Christopher Bland, BT Chairman. "Get the banks off our back, get the newspapers off our back, and get the politicians off our back." Bland says the monkeys are gone. To wit, the almost £30 billion debt situation has been dealt with. The issue of whether BT could grow revenues in a climate of declining traditional access lines has been answered. And while not everybody is completely reassured, BT has shown success at transforming itself from a "boring utility" to a company growing software and information technology businesses.
That isn't to say BT has succeeded wildly with all its initiatives. So far, there is little to show in the fixed-mobile convergence and personal TV areas, for example.
Where BT really has succeeded are network IT services and broadband. Over the last five years, network IT services have grown with the compound annual growth rate of almost 20 percent, at £4.4 billion, as BT's largest single stream or revenue, exceeding those of other calls or lines.
And broadband is the defining new service of the decade, having grown seven fold.
BT has grown its earnings before interest, taxes and depreciation for five consecutive quarters, with a nine-quarter improving trend.
The impressive thing is that mobility is such a slight factor. For most other tier one providers, mobility is the main story. BT has grown without mobile revenues to speak of. Certainly not on the scale of broadband and IT services. Maybe new monkeys are going to jump on. But at least the old olds are gone.
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