BT restructures further

UK incumbent telco, BT, on Tuesday announced a restructuring operation designed to accelerate the company’s transformation into a networked IT services company.

Under the restructuring, Andy Green will move from being chief executive of BT Global Services to become CEO of Group Strategy and Operations.

Green will head up two new business units that will design and operate services worldwide to meet the needs of BT Retail, BT Global Services, BT Wholesale and Openreach. About 20,000 BT employees will move into these new units from other parts of the business.

Meanwhile, Francois Barrault will become chief executive of BT Global Services, moving from his current role of president of BT International.

Ben Verwaayen, BT chief executive, said: “This is the second phase of BT’s transformation. The first phase saw BT shift its focus from narrowband to broadband. This next stage is equally important. It will see BT advance from a 20th century hardware-based company to a 21st century software-based services company.”

Mike Cansfield, telecoms practice leader at Ovum, said: “We have been concerned for some time that this organisational stability needs to adapt to the new world in which BT operates. Today BT has shown that it is mindful that it does need to evolve the organisational structure.

“What BT has done this is radical. Taking the network out of Wholesale is, in our view, probably overdue. This is not a criticism of Wholesale, but recognition that in the post TSR and in the 21CN era there is a need to focus on fully leveraging the opportunities these create. This restructuring brings greater clarity to Wholesale’s role going forward, and probably strengthens the representation of the channels to market within BT.”