BT creates BT Business unit
December 16, 2022
By Colin Mann
BT Group is to combine its Global and Enterprise units into a single B2B unit, BT Business, suggesting the combined unit will enhance value for all its B2B customers, strengthen its competitive position, and deliver material synergies by:
- Leveraging the full scale and capabilities of BT Group to develop and deliver market-leading products and services for all its B2B customers, including next generation connectivity and unified communications, multi-cloud networking, and advanced security solutions.
- Creating a single interface to BT Group for our corporate customers and public sector institutions, combining our vertical sectoral expertise and capabilities, and removing the current duplication between Enterprise and Global.
- Driving significant and rapid gross annualised cost savings of at least £100 million (€114.4m) by the end of FY25 through consolidation and rationalisation of management teams, support functions, product portfolios and systems.
BT Business will be led by Bas Burger, the current CEO of BT’s Global unit. Burger joined BT Group in 2008 and prior to the Global role was responsible for BT Americas. Before joining BT Group, Burger was executive president and a member of the management committee of Getronics NV, where he ran global sales, channels and partnerships, developing the company’s international business. He was also CEO and managing director of KPN Entercom Solutions.
This will create a simpler BT Group with three Customer Facing Units: Consumer supporting UK consumers; BT Business supporting business and public sector customers; and Openreach delivering UK nationwide fixed access infrastructure.
“BT Group is a leading provider of B2B connectivity and related services to UK and multinational corporations, government and public sector organisations worldwide, as well as UK SMEs and SoHos,” stated Philip Jansen, BT Group Chief Executive. “BT Enterprise is the market leader in the UK, with a market share of 30 per cent underpinned by BT Group’s fixed and mobile network leadership, the strength of the BT brand, and national sales, service and distribution. BT Global serves many of the world’s largest companies and is consistently rated as a leader for its networking and security services and has ambition to be the leading provider of secure multi-cloud connectivity.”
“By combining the two units, BT Business will bring the Group’s combined assets, products, capabilities and brand to the service of all of our 1.2 million business customers who will benefit from faster innovation and delivery. Bas is an excellent leader and I’m confident he will build on the plans already underway and drive the combined business back to growth.”
BT Business will create a B2B focused telecoms and technology business which in FY22 generated pro-forma revenues of approximately £8.5 billion and EBITDA of over £2 billion.
The formation of BT Business is expected to deliver at least £100 million of gross annualised savings by the end of FY25. These will contribute to BT Group’s previously announced target to deliver £3 billion in gross annualised savings across the same timeframe.
BT Business will continue to invest in the skills, technology and partnerships required to achieve its ambition of returning to growth and become the leading provider of secure multi-cloud connectivity.
Burger will lead the new unit from January 1st 2023 and it will commence reporting as a single unit from April 1st 2023.
The CEO of BT Enterprise, Rob Shuter, will support Burger with the integration over the next few months and will then be leaving BT to step down from executive life and spend more time with family and on his personal interests.
“Throughout the past two very challenging years, Bas and Rob have provided outstanding leadership,” declared Jansen. “Covid accelerated a shift in the market as people and businesses changed the way they worked, whilst macro-economic factors have disrupted supply chains and put pressure on businesses and the public sector globally. Despite this, we’ve made progress and our customer satisfaction scores have improved, in some cases to an all-time high. I am grateful to Bas and Rob for laying the foundations that enable us to take this next step in BT Group’s transformation.”
“Bas and the Global and Enterprise teams will now work out the details of the integration over the next few months. I would like to reiterate my thanks to Rob for his contribution to BT over the last two years and wish him well for the future.”