BT moves into real time

Design and operate. BT is hoping the world of software-based services will be that simple. The U.K. telco giant late last month committed to a new simplified, two-tiered corporate and operating structure that will itself be driven by a new management team structure, all in the hopes of copying the success of current Web services models.

How swiftly the telco can recast itself remains to be seen, but BT arguably already separated itself from stodgy incumbency with its massive 21st Century Network (21CN) upgrade and aggressive push into new applications such as fixed/mobile convergence.

The carrier's two new units, BT Design and BT Operate, bring together BT's design, operations, IT and networks people into a single reporting structure that will design and operate services for customers of BT Retail, BT Global Services, BT Wholesale, Openreach and the wider communications industry. In short, BT Design will be responsible for service development activities, while BT Operate oversees how those services are deployed and operated over the network.

“There are tremendous advantages to focusing on software-based services,” said Adam Liversage, chief press officer for BT. “They will enable BT to operate more openly, collaborating and partnering with other companies, and using our systems to allow companies with great ideas to bring their innovations to market alongside ours. Leveraging the benefits of software also allows us to develop and deliver new services to our customers in ‘real time’-when it is convenient for them. And by exploiting one software-enabled network to serve all our customers, we will truly be able to deliver globally, offering the same services in line with our customers' needs, irrespective of location.”

The benefits of the new approach are already being felt by customers with access to automatic updates for BT Vision, the BT Home Hub and IP-VPNs.

The 21CN is the network underpinning, added Matt Beal, chief technology officer of BT Wholesale. “The 21CN will support this structure in the long term,” he said. “It's four years away from finishing and won't right now enable a lot of the new synergies, but it eventually will.”

BT made several new management appointments to support the missions of the two new units. Most of these appointments will take effect July 1. Among them, Andy Green, who had been CEO of BT Global Services, is becoming BT's CEO of Group Strategy and Operations, overseeing the entire two-pronged structure.

Under Green, Al-Noor Ramji was named CEO of BT Design, and Roel Louwhoff was cast as CEO of BT Operate. Ramji is currently CEO of BT Exact, the company's IT division. He will continue to serve as BT's chief information officer. Louwhoff is currently president of customer service and network operations for BT Global Services. Several other existing BT executives and managers are being redeployed to support the two unit CEOs.

Ovum analyst Mike Cansfield wrote in a research note that BT may face “tension between an internally focused driving a change agenda and external-facing channels,” but lauded BT's aggressiveness in initiating a transformational agenda.

Liversage said no employees are being laid off as part of the restructuring, but about 20,000 workers are moving into the new units from other divisions within the company.