A new structure for BT

The new structure, at the forefront of the next stage of BT’s transformation from a hardware focused, 20th century telecommunications company into a customer-centric, software-driven 21st century services company, is expected to be delivered fully by early 2009. The new structure is being introduced on a phased basis to ensure that service delivery is maintained while the change is implemented.

One of the key structural changes is the closer integration of BT’s network and IT teams into two new and closely aligned units – BT Design and BT Operate.

BT Design and BT Operate will create and deploy software-based products at the heart of BT’s network infrastructure, in the UK and overseas and bring together BT’s skills in these functions from the UK and overseas.

BT Design uses an ever-expanding library of proven software techniques and agile working to reduce traditional project delivery timescales, creating a secure environment where customers can access and exploit common components and layers of capabilities. BT Operate will install and maintain these powerful new products within the network.

Under the new regime, these two new teams will work more collaboratively than they did in the past, when software and systems development played more of a back office support role to hardware focused networks.

The change has been implemented with a full appreciation of, and commitment to, BT’s Undertakings.

“One of the major considerations when designing the new organisational structure has been to ensure that we respect and maintain the principles enshrined in the Undertakings. We have been discussing the new structure with Ofcom throughout the design period and have been issuing guidance to all BT people on the need to maintain compliance with our obligations throughout the initial phase. Existing product responsibilities and obligations ...... will continue to be honoured,” said Peter McCarthy-Ward, Director of Equivalence.

BT’s line of business structure is unchanged as a result of the new structure with BT Wholesale and Openreach remaining as the main customer facing units for its communications provider customers. Their role is to understand, represent and ensure BT delivers what its communications provider customers require. Both Openreach and BT Wholesale retain responsibility for their existing portfolios and for the development of those portfolios in line with their customers' requirements, and to ensure that BT delivers equivalence across this portfolio. Existing product responsibilities and obligations under the Undertakings and under findings of Significant Market Power remain unchanged and will continue to be honoured.