BT GROUPS

BT Groups

BT Groups

Question 1

BT Group formerly known as the British Telecom is the incumbent of British Telecommunications. The opening to competition of the market date 1982 but BT is still an industry leader in fixed telephony. BT operates in more than 170 countries, and nearly a third of its revenues come from its subsidiary Global Services. BT Group's world headquarters and registered office is the BT Centre, a 10-storey office building at 81 Newgate Street in the City of London, opposite St. Paul's tube station (BT Group Plc, 2011).

Question 2

BT Group is a holding company for a group of businesses that provide services in the U.K., elsewhere in Europe and around the world. BT manages the telephone exchanges, the main network and the local loop of the majority of landlines UK. Today, BT manages about 25 million fixed lines in the kingdom. With the exception of the City of Kingston-upon-Hull, which has its own telecommunications operator, Kingston Communications, BT has an obligation to public service throughout the rest of the UK. This means that society has an obligation to provide a fixed telephone line to any address in England. The company is also obliged to make available to all telephone booths. BT Group reported fiscal year-end results that were spot-on with analysts' expectations, with revenue declining 3.8% and EBITDA margins at 31.4%. The firm's retail division continues to garner more than 50% of net new broadband customers and now has 6.3 million subscribers, including 550,000 superfast BT Infinity customers. It also continues to slowly add television customers, which now exceed 700,000. These additional services pushed average revenue per user up 1.8% to GBP 343 ($554) annually. However, this was offset by a 4.5% decline in its traditional fixed-line telephony base (BT Group Plc, 2011).

The businesses of BT are closely supervised by a special government regulation, controlled by OFCOM (the British equivalent of the ARCEP). Following its privatization in 1991, BT found itself in a dominant position in certain markets, to balance this position; the company must meet additional requirements in relation to its competitors in these sectors, such as using reasonable rates and process its customers fairly. While continuing to provide services in its traditional sectors, sectors that BT is obliged to provide or who are highly regulated, the company has diversified into more profitable products and services, and other less regulated . BT Group is organized around the following subsidiaries:

BT Retail: over fixed lines to individuals;

BT Wholesale: Telecommunications network management and global sales of minutes;

Open reach: outsourced part of BT Wholesale charge of ensuring equitable access network to BT's competitors;

BT Global Services: Business services and consulting activities;

BT Exact / One IT: consultancy and internal IT, there are sometimes overlaps with BT Global Services;

Group operations: data security and company employees, research and development, and all support functions of the group such as human resources, legal services, general services.

BT Vision: ADSL TV service.

Question 3

The financial statements are the mathematical conclusion of a commercial business every ...