The company is set to recruit across diverse areas such as cyber security, software engineering and customer service to support the UK’s fast growing digital sectors.

The new roles will be based at BT Group’s state-of-the-art offices; locations include Belfast, Birmingham, Bristol, Cardiff, Darlington, Ipswich, Leeds, London, Manchester, Sheffield, and Warrington².

BT Group is the UK’s top private sector apprenticeship employer, recruiting more than 3,000 apprentices and graduates over the past five years. In 2024, BT Group was named the UK’s leading private sector company for apprentices, recognising the company’s commitment to creating new apprenticeships, the diversity of apprentices and the number of apprenticeships successfully completed.

Athalie Williams, Chief Human Resources Officer at BT Group, said: “I’m incredibly proud of the opportunities we provide to develop new talent at BT Group and recognise the valuable contributions graduates and apprentices bring to the workforce. Last year alone, we recruited around 500 apprentices and graduates, all eager to learn, develop their skills, and help deliver better experiences for our customers.”

Last year, BT launched a new Apprenticeship Fund, designed to support SMEs, charities and public sector organisations across England, who can access up to £4m in apprenticeship funding over an initial four-year period.

In partnership with Babington, one of the UK's largest and longest-established apprenticeship training providers, BT is offering businesses the financial support they need to invest in talent, and organisations can register their interest on the BT Group Apprenticeship Fund Portal.

Jacqui Smith, Minister for Skills, said: “Apprenticeships are central to this government’s Plan for Change — they break down barriers to opportunity and equip people of all ages and backgrounds with the skills they need to go on to rewarding careers. They also drive growth by giving businesses the workforce they need in key sectors of the economy.

“It’s great to see BT Group, one of our Top 100 apprentice employers, backing this mission by recruiting more than 600 apprentices and graduates. Their commitment demonstrates the real impact apprenticeships can have both for individuals and for businesses pushing our economy forward.

“We are fully committed to expanding opportunities even further. Through our reforms, including the introduction of Skills England and our new Growth and Skills offer, we will ensure even more apprentices will join the pipeline of talent that will drive growth and power our mission-driven government.”

For more information on apprenticeships or graduate jobs at BT Group, please visit: bt.com/earlycareers.

Notes to editors

• Top 100 Apprenticeship Employers: Top apprenticeship employers celebrated - GOV.UK
• For more information about our Work Ready programme and our digital skills programme please visit: https://www.bt.com/skillsfortomorrow
• Research by CEBR found that for every £1 that is spent on apprenticeships, the national economy gains £21. This is high in comparison to other expenditure/returns on investment in the innovation, research and technology sectors range from around £4 – £7 per £1 spent.
• To find out more about the Apprenticeship Levy visit: Pay Apprenticeship Levy - GOV.UK (www.gov.uk)

_{¹ 651 jobs: 633 apprentice and 18 graduate roles
² Field based roles are located in communities across the country}

Jon joins BT Group from the leading Danish telecoms provider, Nuuday, where he has been CEO since 2021, leading its transformation and return to growth. 

Allison Kirkby said: “I’m delighted to welcome Jon to BT, and to be working with him again. Jon’s considerable experience from the UK and European telecoms markets, together with his track record in leading businesses through transformation, will be hugely valuable as we fully focus BT Business on the UK.” 

Jon James said: “I am excited and honoured to join BT as CEO of BT Business, the UK’s leader in B2B telecoms. BT Business has an unbeatable combination of deep customer relationships and world-class technology expertise, and I am looking forward to working with Allison, Bas and the BT Business team as we build an even stronger asset for our customers, our shareholders and for the UK.” 

At the start of this financial year BT announced that it would look to optimise its international operations, including via potential partnerships, to enable it to become a UK-centric business. With the addition of Jon to the executive team, Bas Burger, current CEO of Business, will be able to devote all of his time to the optimisation of BT’s international operations and explore options for the unit. 

Allison Kirkby said: “I’d like to thank Bas for his leadership of BT Business. His extensive knowledge of the telecoms market for multinational corporations and deep relationships with key partners, vendors and customers will be invaluable as we progress with options for our international business.” 

About Jon James 

Jon has nearly 30 years’ experience in the European TMT sector, including the UK and Scandinavia. He has a track record in business turnarounds, most recently leading the transformation and return to growth of the leading Danish telecoms provider, Nuuday, where he was CEO from 2021 until the end of 2024. 

Jon has previously worked with leading private equity houses (2019-2021), as the CEO of Tele2 Netherlands (2017-19), and Chief Operating Officer at Swedish cable operator, Com Hem (2014-2016), and previously held senior roles at Virgin Media (2007-2013). 

Jon, a UK national, is married with two children and, together with his wife, is the co-founder of Space2Grow, an award-winning charity offering support for local families.

We're doing all we can to be smart with our cost base and we're incredibly careful about what we pass on to customers. And we want to be clear about how and when any changes to prices will occur.

From 31 March we’ll roll out our annual price change, with customers on two types of model across our brands: Pounds and Pence and CPI+3.9%.

Why two models? In December 2023, Ofcom asked communication providers to move away from inflation-linked mid-contract price rises. We were the first operator in the UK to introduce a Pounds and Pence price change, aligned with Ofcom’s approach offering our customers a predictable long-term view of their annual price rise for the duration of their contract term.

Putting a number on it

So, from 31 March 2025, for new and re-contracting mobile customers on the Pounds and Pence model, this annual increase will be an extra £1.50 a month. It will be £1.50 a month for connected devices (including laptops, tablets and smart watches), £2 a month for TV customers, and £3 a month for broadband customers.

There will be customers on our CPI+3.9% model, because they were already in contract before we introduced the Pounds and Pence change. There will also be some customers with a mix of the two models across different products.

For CPI+3.9%, we use the December rate calculated by the Office of National Statistics to calculate our price change. This was 2.5%, which means a price change of 6.4% (CPI:2.5% + 3.9%). On average, this year’s change is around £2 to £3 per month – a very small part of an average household's bill.

A total of 2.6 million customers will be excluded from price change. This includes our Social Tariff customers, landline only customers who don’t have broadband with us or another provider, and those with PAYG on mobile.

For everyone else, this small increase means we can keep giving our customers even more with the latest tech across fibre and mobile as we roll out 5G standalone and Wi-Fi 7 – setting a new standard for connectivity in and out of the home – continue to invest in our network and keep our most financially vulnerable customers connected. 

We’re the UK’s best mobile network for 11 years in a row, and one of the country’s fastest broadband providers. The quality of those network is the foundation that means we can bring our customers so much more as demand continues to increase. Average mobile data useage, for example, has more than trebled in the past five years, and mobile download speeds have doubled. 

With customers using more data and getting faster speeds, these relatively small price increases mean we can give them the networks they need.

ESN is a national critical communications system that enables fast, safe and secure mission-critical voice, video and data across the 4G network and gives first responders immediate access to life-saving data, images and information in live situations and emergencies on the frontline. 

The network grants priority access for vital services including life-saving blue light workers, to ensure they are able to communicate and respond swiftly to emergency events even in remote areas or when networks are busy. 

EE was first entrusted by the Home Office to build ESN in 2015 as part of a wider new Emergency Services Mobile Communications Programme to replace the old Airwave system, which had been in place for more than two decades. 

This upgrade gave Britain’s police, fire and rescue, ambulance services, and other first responders, access to EE’s award-winning mobile network – which has been named the UK’s best and most reliable mobile network*. 

It included building a new dedicated core network for ESN as a mission-critical service, ensuring priority EE connectivity to Emergency Services users at all times. It also included upgrading more than 19,500 of EE’s existing 4G sites ready for ESN and expanding coverage in rural and critical operational areas, as well as developing the network to enable priority and pre-emption for Emergency Services over other users. 

EE’s original mobile services ESN agreement with the Home Office is due to expire on 31 December 2024. 

Under the new contract, which comes into effect today, BT Group will continue to build, maintain and develop critical mobile coverage and capabilities for ESN as it rolls out to support more than 300,000 users. 

This means providing high service availability across all of EE’s 4G Radio Access Network (RAN), as well as adding additional connectivity to boost national coverage for first responders. 

The new contract also sees BT Group take management responsibility and provide coverage services for the Home Office’s Air-to-Ground (A2G) network, their Extended Area Services (EAS) sites, London Underground and specific road and rail tunnels. 

It is expected that the ESN programme will see BT Group carry out the country’s largest ever single roll-out of coverage solutions into indoor locations – to meet the operational standards for Public Safety Communications Services (PSCS) users. The new contract spans 7.25 years, with option for a one-year extension. 

Bas Burger, CEO – Business at BT, said: “BT Group has been a committed longstanding partner for Britain’s Emergency Services Network (ESN). We’re proud to double down on this commitment today by broadening the scope of our agreement with the Home Office until 2032 and beyond – as the Government takes ESN from build through to delivery and operation of this critical network. 

“Essential public services like these depend on a rock-solid digital foundation. Through our award-winning EE mobile network, we’ll continue to play a central part in delivering mission- critical, trusted communications for the Emergency Services on the ground, in the air, and wherever they need to operate – helping them connect for good and protect the communities they serve nationwide.” 

BT is unrivalled in its experience delivering the UK’s critical connectivity infrastructure, with its fixed and mobile networks trusted to underpin essential public services across the nation. 

As well as connecting national and local government, BT works with more than 200 NHS trusts, 43 police forces, 29 fire services and has supported the emergency services by handling all incoming 999 calls since 1937. 

ENDS

Notes to editors: 

*All claims based on the RootMetrics® UK RootScore® Report: H1 2024. Tested at locations across the UK with the best commercially available smartphones on 4 national mobile networks across all available network types. Your experiences may vary. The RootMetrics award is not an endorsement of EE. Visit ee.co.uk/claims for more details. 

Since 2017, companies with an annual wage bill of more than £3 million have been required to pay the apprenticeship levy, using the funds to recruit and train apprentices. They can also choose to transfer up to 50% of their levy to help support other companies.

BT Group has partnered with Babington, one of the UK's largest and longest-established apprenticeship training providers to transfer up to £4 million from its apprenticeship levy funds to help SMEs, charities and the public sector train new apprentices and upskill their existing workforce.

Babington will play a crucial role in matching businesses with appropriate training providers and guiding them through the application process. Successful applicants will be provided with access to funded apprenticeship training within 20 days, subject to meeting funding criteria.

The Fund has the ability to scale up depending on take up and could support up to 550 apprentices, resulting in a £21m positive economic impact¹. The launch comes at a time when more than a third of mid-sized businesses are struggling to recruit apprentices².

Chris Sims, Managing Director for Small and Medium Business at BT said: "SMEs make a significant contribution to our economy, but their uptake of apprenticeships is low.  By sharing up to £4 million from our apprenticeship levy funds, we’re giving these businesses the financial support they need to invest in talent. This not only helps create a more skilled, diverse, and competitive workforce, it also provides SMEs with additional resources to grow and scale their business. The apprenticeship programme at BT has not only shaped our workforce, it has also helped set industry standards.”

Jen Bramley, CEO of Babington, commented: "We are thrilled to partner with BT Group on this transformative project. Our expertise in apprenticeships and training will ensure that SMEs can navigate the process smoothly and connect with high-quality training providers. This collaboration has the potential to make a real difference in addressing skills gaps and supporting business growth across England."

As confidence amongst small business leaders starts to rise³, the Fund forms part of a wider set of measures to help boost their connectivity, security and skills. BT’s mobile payments app, Tap to Pay, helps small businesses accept in-person contactless payments on their iPhone or Android, removing the need for card readers or extra hardware, at a market leading rate for small businesses (1.4%). In addition, four months free broadband for customers on 24 and 36-month contracts and three months free cyber awareness training for their employees will be on offer to help SMEs grow and protect their business. 

A key focus of the Apprenticeship Fund will be on digital skills development, reflecting BT's own emphasis on technology and innovation in its apprenticeship programmes. This approach aims to help SMEs bridge the digital skills gap and adopt new technologies, enhancing their competitiveness in an increasingly digital economy.

The Fund is open to SMEs, charities and public sector organisations across England, including the NHS, focusing on apprentices aged 22 and older. It aims to support local economic growth, reduce the digital divide, and enhance social mobility by providing quick access to apprenticeship funding.

As one of the UK’s largest private sector apprenticeship employers, BT Group has a track record of providing award winning apprenticeship experiences. The company has recruited more than 3,000 apprentices and graduates over the past five years and earlier this year announced plans to hire a further 500 apprentices and graduates for its September 2024 intake, recognising the impact they deliver to the business

Organisations interested in accessing apprenticeship levy funding can register their interest on the BT Group Apprenticeship Fund Portal.

ENDS

Notes to Editors

• In July, BT Group was ranked second in the Top 100 Apprenticeship Employers in the UK  and as part of its Manifesto for responsible, inclusive, and sustainable growth the company has pledged to build a more diverse talent pool.
• Research by CEBR found that for every £1 that is spent on apprenticeships, the national economy gains £21. This is high in comparison to other expenditure/returns on investment in the innovation, research and technology sectors range from around £4 – £7 per £1 spent.
• To find out more about the Apprenticeship Levy visit: Pay Apprenticeship Levy - GOV.UK (www.gov.uk)
• For more information on apprenticeships or graduate jobs at BT Group, please visit: bt.com/earlycareers
• Helping small businesses acquire new digital skills: 1.2m small business owners and their employees have upskilled through BT Group’s Skills for Tomorrow programme covering crucial topics, including how to prevent cyber-attacks and using social media to reach new customers.
• Supporting small businesses through mentoring: BT is supporting businesses via Digital Boost, a free non-profit platform uniting digital experts with leaders of small businesses and charities. Further details can be found here.
• BT Tap to Pay app: BT Tap to Pay | Contactless Payments | BT Business

_{¹ Economic Impact of Apprenticeships - CEBR}

_{² Over a third of mid-sized businesses in the UK are unable to recruit apprentices - BDO}

_{³ FSB | Small Business Index, Quarter 1, 2024}

BT Group’s Consumer division has re-started switching zero-use landline customers who have a broadband connection to its Digital Voice landline service. This follows an industry-wide pause and the introduction of the Government’s Charter to protect vulnerable customers, especially telecare users, while making the switch from analogue to digital landlines.

BT Consumer customers (except landline-only customers, those who use telecare or who have additional needs) will be contacted and offered the chance to switch to a digital landline provided over full fibre broadband, where available. This move aligns with BT Group’s wider strategy to build and connect customers to its future-proof, full fibre broadband, which will be available to 25 million premises by the end of 2026.  

BT Business is urging all of its customers to engage early and to partner with the company ahead of making the switch, especially where there may be a requirement to test existing or upgrade to new equipment to ensure compatibility with a digital line.

The revised approach will result in a single switch for the majority of customers (businesses and consumers) – from copper to fibre - with all customers now expected to have moved off the old analogue PSTN by the end of January 2027.

Howard Watson, Chief Security and Networks Officer, BT Group, said: “The urgency for switching customers onto digital services grows by the day because the 40-year-old analogue landline technology is increasingly fragile. Managing customer migrations from analogue to digital as quickly and smoothly as possible, while making the necessary provisions for those customers with additional needs, including telecare users, is critically important.

“Our priority remains doing this safely and the work we’re doing with our peers, local authorities, telecare providers and key Government organisations is key. But more needs to be done and we need all local authorities and telecare providers to share with us the phone lines where they know there’s a telecare user.”

The digital switch requires collaboration across a range of industries and organisations

During the voluntary pause, the company has continued to raise awareness of the UK’s digital switchover on a region-by-region basis, holding hundreds of events across the country and meeting thousands of its customers face to face.

In January BT Consumer led the formation of the Telecare Action Board (TAB), which has brought together around 30 organisations from Government, the telecoms and telecare sectors, industry bodies, local authorities and regulatory stakeholders to identify and protect telecare users and those with additional needs before they switch to digital.

Coming together was the first step, collaborating was the second. The whole industry must now step up to deliver for customers in the spirit of the Charter, providing the transparency which is critical to the success of this programme. So far, only around a quarter of local authorities and telecare providers have disclosed which phone lines have telecare devices on them; it's now imperative that every single one of these organisations do the same so that these customers receive the right support at the right time.

A gradual approach to switching

April 2024, BT Consumer resumed non-voluntary migrations for customers who have not used their landline in the last 12 months, who do not identify as vulnerable or have additional needs, have not contacted an Alarm Receiving Centre (ARC) in the last 24 months and live in an area where a data sharing agreement - which identifies vulnerable customers and detects alarm numbers is in place with the Local Authority or Telecare provider. Switching them to a digital landline provided over full fibre where available on an opt out basis initially.

From Summer 2024, BT Consumer will ramp-up non-voluntary migrations for customers who do not identify as vulnerable or have additional needs, in areas where data sharing agreements have been signed with the local authority or telecare provider.

For customers who don’t use broadband, which includes landline-only consumer customers and business customers with specialist connectivity requirements, including some alarms, lift and emergency lines, ATMs and payment terminals, the company is working on an interim, dedicated landline service¹ designed to keep these customers connected while moving them off the analogue PSTN.

New equipment will be installed in local telephone exchanges that will allow consumer and business customers who do not have broadband to use their landline in the same way as they do today until a digital solution becomes available or 2030, if that comes sooner. Trials have already begun with a nationwide rollout for eligible customers expected this Autumn.

BT Business is urging all of its business and public sector customers to register their interest to test this temporary ‘pre-digital phone line’ product, so it can work with them to understand specific business use cases.

From Spring 2025, BT Consumer will contact customers who identify as vulnerable or with additional needs about the switch in areas where data sharing agreements with Local Authorities or Telecare companies are in place and in-home support for telecare users is available.

All customers will be contacted at least four weeks in advance before making the switch, to ensure they are ready to move to a digital landline. Engineering appointments will be made ahead of the switch and additional support will be provided on the day to ensure that customers are left with a working telecare device.

Backing Businesses

The company is asking business customers, large and small to act now and move over to all-digital networks, to futureproof their operations and reap the rewards of being a digital business. 

Business customers are being encouraged to review their technology footprint and identify what’s still connected to the PSTN. BT Business has a team of experts to support, and any business can test their equipment for free at its R&D test centre at Adastral Park in Suffolk. Where possible, they should then proceed to switch any legacy equipment to an All-IP alternative. 

BT’s Business team is also working with Critical National Infrastructure (CNI) customers in sectors like energy, water, transport, health and national security – to guide them seamlessly away from the PSTN and onto more reliable, resilient and future-fit technology.

Towards the UK’s full fibre future

For both Consumer and Business customers, this once-in-a-generation, UK-wide upgrade will ensure that everyone stays reliably connected now and into the future. The UK’s full fibre future is a national mission, and BT Group is determined to support its customers through it every step of the way.

ENDS

Notes to editors

• Further information about the industry wide change can be found here: https://www.gov.uk/guidance/uk-transition-from-analogue-to-digital-landlines

Continued support for customers

The company will continue to maintain its strict policies to protect telecare users and vulnerable customers where they are made aware of their status and will continue to provide resilient solutions to customers who are dependent on their landline. These include:

• Providing free battery back-up units to customers with additional needs, such as those with health pendants, or who are over 70 or without mobile coverage. Battery back-up units enable calls in the event of a power outage and later this year, we will launch an advanced battery back-up unit outlasting most power cuts, with a battery life that far exceeds the minimum Ofcom requirements.
• Offering customers a hybrid phone with a battery back-up of eight hours and enabling calls over the mobile network in the event of a power outage.  
• Continued investment in our leading 4G network, which is on course to pass 90% of the UK’s geographic landmass by the mid-2020s, building additional resilience into our core network and providing reliable connectivity to rural communities through the Shared Rural Network programme. 
• Engineering appointments for all customers who identify as vulnerable and have additional needs, with the ability to nominate a family member, friend or carer to help them through the switch, who will receive all the information about switching on the customers behalf. Vulnerable customers will automatically receive the equipment they need and they won’t be switched until they have spoken to an advisor and booked an appointment.  
• In home support for telecare users, known as ‘Prove IP Telecare’, due to launch in Spring next year where an Openreach engineer will support a customer through the switch from an analogue to digital landline and will make sure that the telecare device is working before leaving the property. If the telecare device isn’t working, then the engineer will switch the customer back to an analogue landline.

BT Consumer will not move any of its customers who are known to be vulnerable or with additional needs until Spring 2025 at the earliest, once the necessary data sharing agreements with Local Authorities or Telecare companies are in place and in-home support for telecare users is available.

¹ The dedicated landline service is not compatible with broadband and will allow customers without broadband to stay connected.

BT Group has opened its new hub and Welsh HQ in Cardiff for 1,000 colleagues.

The move represents a multi-million pound investment by BT Group in the city, and secures a new, significant presence for the company in the Welsh capital. 

The new workspace and contact centre – located in the Capital Quarter development of the city centre – will become a hub for colleagues from across BT Group, including EE, BT Business and Openreach. 

Teams have been moving into the new workspace from other BT Group buildings in the city and wider region. 

The new Cardiff HQ is part of BT Group’s major programme* to modernise the company’s workspaces and reduce its number of locations in the UK from more than 300, to around 30. 

The workspace has been fitted with the latest smart building technology, flexible workspaces and collaboration areas. It also features a 6th floor roof terrace, café, underground cycle parking and shower and changing facilities. 

Brent Mathews, BT Group’s director of property, said: “We're really pleased to open our exciting new workspace in the centre of Cardiff. Despite the economic challenges, and changes to working patterns caused by the pandemic, we think this is an important investment and it secures our presence in the capital of Wales and the wider region. 

“It will bring our people together in an impressive and modern environment that will help us work better together, and attract and retain the best people. Our new workspaces have a real focus on colleague wellbeing.  

“We still see an important role for the office, where colleagues can come together to connect, learn and develop their skills. This is particularly important for younger people and those at the start of their careers.” 

BT Group remains one of Wales's leading private sector employers – employing around 4,000 people – and has a considerable impact on the Welsh economy. According to an independent study, the Group's activities in Wales contribute around £700 million a year to the Welsh economy and support more than 8,000 jobs across the nation. 

BT Group is also investing heavily in new ultrafast full-fibre broadband and mobile networks across Wales. Openreach revealed recently that half of all Welsh properties (more than 800,000) can now access ultrafast broadband thanks to the investment in a new, full fibre digital network. 

In terms of mobile networks, EE has continued to upgrade its 4G and 5G networks across Wales. EE’s 4G network now covers more than 85% of Wales’s geography, more than any other provider. It has continued to expand 4G in rural Wales, with 200 rural locations in Wales being upgraded by June 2024 as part of the Shared Rural Network. 

ENDS 

Canolfan newydd BT Group ar gyfer 1,000 o bobl yn agor yng Nghaerdydd 

Mae BT Group wedi agor swyddfa a phencadlys newydd yng Nghaerdydd ar gyfer 1,000 o weithwyr. 

Mae’r gweithle newydd yn cynrychioli buddsoddiad gwerth miliynau o bunnoedd gan BT Group yn y ddinas, ac yn sicrhau presenoldeb newydd, arwyddocaol i’r cwmni ym mhrifddinas Cymru. 

Bydd y swyddfa a’r ganolfan gyswllt newydd – a leolir yn natblygiad Capital Quarter yng nghanol y ddinas – yn dod yn ganolbwynt i weithwyr o bob rhan o BT Group, gan gynnwys EE, BT Business ac Openreach. 

Mae timau wedi bod yn symud i'r gweithle newydd o adeiladau eraill BT Group yn y ddinas a'r rhanbarth ehangach. 

Mae’r pencadlys newydd yng Nghaerdydd yn rhan o raglen sylweddol gan BT Group i foderneiddio gweithleoedd y cwmni a lleihau nifer ei leoliadau yn y DU o fwy na 300, i tua 30. 

Mae'r gweithle yn cynnwys y dechnoleg clyfar diweddaraf, mannau gwaith hyblyg a mannau cydweithio. Mae hefyd yn cynnwys teras ar y 6ed llawr, caffi, maes parcio beiciau tanddaearol a chawodydd a chyfleusterau newid. 

Dywedodd Brent Mathews, cyfarwyddwr eiddo BT Group: “Rydym yn falch iawn i agor ein gweithle newydd a chyffrous yng nghanol Caerdydd. Er gwaethaf yr heriau economaidd, a’r newidiadau i batrymau gwaith a achoswyd gan y pandemig, rydym yn credu fod hwn yn fuddsoddiad pwysig ac mae’n sicrhau ein presenoldeb ym mhrifddinas Cymru a’r rhanbarth ehangach. 

“Bydd yn dod â’n pobl ynghyd mewn amgylchedd trawiadol a modern a fydd yn ein helpu i gydweithio’n well, a denu a chadw’r bobl orau. Mae ein gweithleoedd newydd yn canolbwyntio ar lesiant cydweithwyr. 

“Rydym yn dal i weld rôl bwysig i’r swyddfa, lle gall cydweithwyr ddod at ei gilydd i gysylltu, dysgu a datblygu eu sgiliau. Mae hyn yn arbennig o bwysig i bobl iau a’r rhai sydd ar ddechrau eu gyrfaoedd.” 

Mae BT Group yn parhau i fod yn un o brif gyflogwyr sector preifat Cymru – yn cyflogi tua 4,000 o bobl – ac yn cael effaith sylweddol ar economi Cymru. Yn ôl astudiaeth annibynnol, mae gweithgareddau’r grŵp yng Nghymru yn cyfrannu tua £700 miliwn y flwyddyn i economi Cymru ac yn cefnogi mwy nag 8,000 o swyddi ar draws y wlad. 

Mae BT Group hefyd yn buddsoddi’n sylweddol mewn band eang ffeibr llawn newydd a rhwydweithiau symudol ledled Cymru. Datgelodd Openreach yn ddiweddar y gall hanner yr holl gartrefi a busnesau yng Nghymru (mwy na 800,000) bellach gael mynediad at fand eang gwibgyswllt diolch i fuddsoddiad newydd yn y rhwydwaith digidol ffeibr llawn. 

O ran rhwydweithiau symudol, mae EE wedi parhau i uwchraddio ei rwydweithiau 4G a 5G ledled Cymru. Mae rhwydwaith 4G EE bellach yn cwmpasu mwy nag 85% o ddaearyddiaeth Cymru, yn fwy nag unrhyw ddarparwr arall. Mae EE wedi parhau i ehangu 4G yng nghefn gwlad Cymru, gyda 200 o leoliadau gwledig yng Nghymru yn cael eu huwchraddio erbyn mis Mehefin 2024 fel rhan o’r Rhwydwaith Gwledig a Rennir (Shared Rural Network).  

DIWEDD 

Notes 

BT Group’s Better Workplace Programme is one of the largest workplace improvement and consolidation scheme of its type ever undertaken in the UK. The five-year programme, which will be completed this year, will see the company shift from having around 300 locations in the UK to around 30, with a focus on creating new, modern workspaces. The company has already opened new flagship offices in London, Birmingham and Bristol, refurbished offices in Glasgow and Belfast, and a new regional hub is opening later this year in Manchester. 

As the UK heads rapidly into an all-digital future, a number of network operations that were traditionally provided from BT Tower are now delivered via BT Group’s fixed and mobile networks. For example, the Tower’s microwave aerials were removed more than a decade ago, as they were no longer needed to carry telecommunications traffic from London to the rest of the country.

The BT Tower has long been an important site for BT Group’s Media & Broadcast business, as one of the key global interchange points for live television. As part of its long-term strategy, the Media & Broadcast division has already been migrating services onto its cloud-based platform, which will allow a more straightforward move to more modern and efficient premises. This will enable the division to continue to sit at the heart of UK and global media distribution.

Brent Mathews, Property Director, BT Group said: “The BT Tower sits at the heart of London and we’ve been immensely proud to be the owners of this important landmark since 1984. It’s played a vital role in carrying the nation’s calls, messages and TV signals, but increasingly we’re delivering content and communication via other means. This deal with MCR will enable BT Tower to take on a new purpose, preserving this iconic building for decades to come.”

Tyler Morse, CEO and owner of MCR Hotels, said: “We are proud to preserve this beloved building and will work to develop proposals to tell its story as an iconic hotel, opening its doors for generations to enjoy.”

MCR Hotels own around 150 hotels, including the historic landmark Eero Saarinen-designed TWA Hotel in New York City. Payment for the sale will be made over multiple years, as BT Group equipment is progressively removed from the building, with final payment on completion of the purchase.

Notes to editors:

The BT Tower is a grade II listed communications tower located in Fitzrovia, London. An iconic part of the London skyline, the main structure is 177 metres (581 ft) high, with a further section of aerial rigging bringing the total height to 189 metres (620 ft). Upon completion in 1964, it overtook the Millbank Tower to become the tallest structure in London until 1980, when it was surpassed by the NatWest Tower.

BT Tower was opened for operations in 1965 by Prime Minister Harold Wilson. As well as acting as a hub for the UK’s communication networks, BT Tower was open to the public until 1971, with a restaurant making use of the revolving top floor. Since 1984, BT Tower has been operated by BT Group, with its top floor regularly hosting corporate and charity events, and its “infoband” screen regularly displaying messages across London.

 BT Group has detailed plans to simplify its operations and lower costs across the company, including reducing the number of offices in its estate from more than 300 to around 30. The company, in a separate deal, sold its former headquarters, BT Centre, in July 2019 for £210 million and moved into a state-of-the-art HQ in 2021 at One Braham, Aldgate. The Tower deal forms part of the simplification of BT Group’s property portfolio.

-        Ends    -

Allison Kirkby, Chief Executive, commenting on the results, said

"BT Group has delivered another quarter of revenue and EBITDA growth, while rapidly building and upgrading customers to our full-fibre broadband and 5G networks, and we continue to be on track to achieve our financial outlook for the year.

"We are providing great digital connectivity and services, while laying the foundations for future growth that will benefit our customers, investors and the UK.  As I assume the role of Chief Executive, we remain committed to our purpose and our strategic focus, and I am looking forward to leading BT Group into its next phase of development."

Continued strong execution of our strategy

• FTTP build rate accelerated to 73k per week delivering a record of 950k premises passed in the quarter. FTTP footprint is now expanded to 13m premises with a further 6m where initial build is underway
• Strong Openreach customer demand for FTTP with net adds of 432k in Q3. Total premises connected now  4.4m with increased take-up of 34%
• Openreach broadband ARPU grew by 10% year-on-year due to price rises and increased volumes of FTTP; Openreach broadband lines losses of 369k year to date, a 2% decline in the broadband base; ongoing weak broadband market conditions mean losses will exceed 400k in FY24
• Consumer broadband ARPU  increased 5% year-on-year and Consumer postpaid mobile ARPU increased 8% year-on-year; monthly churn for the quarter remained stable in a competitive market with broadband and postpaid mobile at 1.1% and 1.2% respectively
• Business financial performance  continues to be impacted by higher input costs, legacy declines and prior year one-offs, partly offset by cost transformation and growth in Small & Medium Business (SMB) and Security
• Retail FTTP base grew year-on-year by 46% to 2.4m of which Consumer 2.3m and Business 0.1m; 5G base 10.3m, up 30% year-on-year. RootMetrics named EE the UK's best mobile network for the 21st time running
• BT Group NPS of 25.7, up 3.6pts year-on-year, further improving customer experience

Continued pro forma revenue and EBITDA growth year to date:

• Pro forma adjusted¹ revenue £15.8bn, up 3% on Q3 FY23 due to price increases and fibre-enabled product sales in Openreach, increased service revenue¹ in Consumer with 2023 annual contractual price rises being aided by higher roaming and increased FTTP connections, and SMB trading momentum and price rises in  Business, offset partially by legacy product declines; reported revenue was up 1%
• Pro forma adjusted¹ EBITDA £6.1bn, up 3% with revenue flow through and cost control more than offsetting cost inflation and one-off items in the prior year
• Reported profit before tax of £1,498m, up 15%
• Reconfirming all FY24 financial outlook metrics

_{¹   See Glossary below
²   Q3 results include a correction of H1 FY24 revenue across Openreach and Business, with no impact on total group revenue. £38m external wholesale revenue was incorrectly recognised by Business in H1 FY24. There is no impact on Openreach segmental results as the revenue was previously classified as internal so was already included in Openreach results; there is a contra entry through intra-group items. H1 FY24  results have not been restated; the correction has been booked within Q3 FY24 to ensure the results for the nine months to 31 December 2023 are correctly stated. The impact on the prior period is immaterial.}

_{¹   See Glossary below
²   See footnote 2 on previous table. Excluding the £38m correction booked in Q3 FY24, Business revenue would be £2,065m and intra-group items would be £806m.}

Glossary

Our commentary focuses on the trading results on an adjusted pro forma basis. This is consistent with the way that financial performance is measured by management and reported to the Board and the Executive Committee and assists in providing a meaningful analysis of the trading results of the group. Reported revenue and reported profit before tax are the equivalent unadjusted or statutory measures and are reconciled in pages 233 to 235 of the Annual Report 2023.

We are scheduled to announce the full year results for FY24 on 16 May.

Forward-looking statements – caution advised

Certain information included in this announcement is forward looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward looking statements. Forward looking statements cover all matters which are not historical facts and include, without limitation, projections relating to results of operations and financial conditions and the Company’s plans and objectives for future operations. Forward looking statements can be identified by the use of forward looking terminology, including terms such as ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, ‘plans’, ‘projects’, ‘goal’, ‘target’, ‘aim’, ‘may’, ‘will’, ‘would’, ‘could’ or ‘should’ or, in each case, their negative or other variations or comparable terminology. Forward looking statements in this announcement are not guarantees of future performance. All forward looking statements in this announcement are based upon information known to the Company on the date of this announcement. Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward looking statements, which speak only at their respective dates. Additionally, forward looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), the Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

 Download PDF - Trading update for the nine months to 31 December 2023

The company will recruit talent into the company across areas as diverse as software engineering, customer service, applied research, data analytics and cyber-security to support the UK’s fast-growing digital sectors.

The new roles are spread across a number of state-of-the-art offices which form part of BT Group’s Better Workplace Programme - the largest workplace improvement programme and consolidation scheme of its type ever undertaken in the UK.  Locations include Belfast, Birmingham, Bristol, Cardiff, Darlington, Ipswich, Leeds, London, Manchester, Sheffield and Warrington^[2].

BT Group is one of the UK’s largest private sector apprenticeship employers and has recruited more than 3,000 apprentices and graduates over the past five years. The company offers apprenticeships ranging from level two, the equivalent to GCSE standard through to level seven, a master’s degree.

In 2023, BT Group was ranked second in the Top 100 Apprenticeship Employers in the UK and as part of its Manifesto for responsible, inclusive, and sustainable growth the company has pledged to build a more diverse talent pool.

Elaine Bergin, Director of Colleague Experience, BT Group said: “As one of the largest private sector employers of apprentices and graduates in the UK, we continue to recruit and attract brilliant people into our business and we offer unparalleled opportunities to those who join us.

“As we build a better BT Group, we’re developing a pipeline of future talent to help grow our business, deliver great outcomes for our customers and to help underpin economic growth in the UK.”

For more information on how to apply for an apprenticeship or graduate job at BT Group, please visit: https://www.bt.com/earlycareers

ENDS

Notes to Editors

• Top 100 Apprenticeship Employers: Top100AE23.pdf (topapprenticeshipemployers.co.uk)
• For more information about the BT Group Manifesto, visit:  BT Group Manifesto - Responsible business | BT Plc
• BT Group is a partner of the Fast Futures programme which helps provide equal opportunities to 18-22-year olds who are looking to shape their future career. Over the course of 12-weeks, participants learn business-focused skills that are most valued by the employers of today, such as marketing, data, finance, teamwork and problem solving.

^[1] 557 jobs: 111 graduate and 446 apprentice roles.

^[2] Field based roles are located in communities across the country.

BT has confirmed that it will continue to sponsor the four professional rugby union sides in Wales until the end of the 2023-24 season, marking ten consecutive years as sponsor.

The company has sponsored all four Welsh professional teams – Ospreys, Cardiff Rugby, Scarlets and Dragons – since 2014, making it one of the longest sponsorship deals in the history of Welsh regional rugby.

When the first sponsorship agreement was signed in 2014, the ground-breaking deal used the BT Sport name and promoted support for grassroots, youth and community rugby.

BT said that it, and Welsh rugby, had experienced a lot of change over the last ten years, but that it was pleased to provide “continuity” in its support for professional and community rugby in Wales.

Scarlets Executive Chairman Simon Muderack said: “Speaking on behalf of the four Welsh professional sides, we’d like to express our heartfelt thanks to BT for their ongoing support of the domestic game.

“For the last decade, BT have been there through the highs and lows of Welsh rugby. To have such a well-respected business leader backing the game has meant a lot and all four of us look forward to collaborating on various initiatives and projects to promote Welsh rugby in the years to come.”

During the course of the sponsorship, the BT brand has appeared on player kits, at the clubs’ grounds and the agreement has involved community engagement with the teams.

Community initiatives have included the ‘Mini Judgement Day’ rugby festival, sponsored by BT, which has seen more than 1,000 young players (aged 7+8) from community clubs in all four regions come together for a mini ‘tag’ rugby tournament at the iconic Cardiff Arms Park stadium.

Other initiatives have included an education and mentoring programme with the clubs called ‘Tackle’, to help inspire young people in disadvantaged areas of Wales. There has also been joint charity work including BT and EE volunteers supporting various initiatives including food banks, Christmas charity food parcel drops and painting community clubhouses.

Matt Stevenston, head of sponsorship at BT Group, said: “We’re really pleased to be able to celebrate ten years of our sponsorship and relationship with the four Welsh teams. We believe this is the longest sponsorship in the history of the four Welsh clubs, so it's great to mark this milestone. BT and Welsh rugby have seen a lot of change in this ten-year period, but we’re proud to have been able to provide continuity in our support over this time.

“We hope our joint charity work and support for events like the BT Community Rugby festivals has made a difference and helped inspire a new generation of players and supporters.”

BT Group has a significant presence in Wales, both as a major employer and a leading provider of broadband and mobile connectivity. It currently employs around 4,000 people across Wales and is about to open a brand-new office and regional hub in the centre of Cardiff.

EE, part of BT Group, is also the lead sponsor of Wales’s national football teams.

As scammers are known to target vulnerable groups online during the festive period, the one-hour live webinar will reveal the most common tricks and tactics to watch out for.

Register here for the free event on December 12th, either for yourself or on behalf of loved ones who could benefit from understanding more about the online world. All those who register for the session will receive the recording afterward, even if they can't attend on the day.

The event is part of BT Group and AbilityNet’s partnership to support older and digitally excluded people with navigating the online world.

It comes as research* from BT Group highlights older internet users, who may be more vulnerable to online scams, are keen to develop their online confidence. It reveals two thirds (65%) of older people think there’s no age limit on learning new skills, with almost half (49%) open to learning tech skills specifically. 

Victoria Johnson, Social Impact Director at BT Group, said: “If you or someone you care about could benefit from learning more about scams, then join us for ‘The 12 Scams of Christmas’ webinar.

“The run up to Christmas is a time when we’re all online more, shopping for presents or booking events. But it’s also a time when scammers are ready to take advantage of people who are less tech savvy and perhaps aren’t online as much throughout the rest of the year.

"At BT Group, we understand the significance of supporting older and digitally excluded individuals to navigate the digital world. Through our partnership with AbilityNet and initiatives like this webinar, our goal is to empower people with the knowledge needed to feel confident online.”

Lucy Walsh, Digital Skills Trainer at AbilityNet, said: “Almost all of us will, at some time or another, be enticed by ‘scammers’ to part with our hard-earned cash, or our sensitive personal data. This kind of illegal activity is particularly rife during the festive season. 

“So, at this time of year, it's even more important that we spread the word about how we can take action to identify and avoid some common tactics used by online fraudsters.

“Older people, disabled people and those who are less confident with technology are particularly vulnerable to scams, so here at AbilityNet, we want to share some tips and tactics to help keep us all safer online and have a happier, safer Christmas”.

Felicity Oswald, NCSC Chief Operating Officer, said: “As we enter the festive shopping period, online shoppers will naturally be on the lookout for bargain buys. Regrettably, cyber criminals view this time of year as an opportunity to scam people out of their hard-earned cash. I would urge shoppers to join the ‘12 Scams of Christmas’ webinar and also follow the steps in the Cyber Aware online shopping guidance, which includes setting up two-step verification and using passwords with three random words, so they’re easier to remember and harder to hack.”

 www.abilitynet.org.uk/ScamsWebinar

ENDS

Notes to editors

*Research carried out by OnePoll in October 2022 of 1500 people over 60 years of age in the UK.

Jill’s appointment follows the announcement in May this year that Otto Thoresen intended to step down from his position as Trustee Chair following the conclusion of the BTPS 2023 triennial valuation. Since that announcement, Jill has spent the past six months on the BTPS Trustee Board and shadowing Otto to ensure a seamless handover.

As Jill takes on the BTPS Trustee Chair role, Professor Andrew Clare has been appointed to the BTPS Trustee Board. 

Andrew is Professor of Asset Management at Bayes Business School (formerly Cass).  He joins the BTPS Trustee Board with a strong track record in investment focussed trustee and non-executive director roles.  He has published extensively in both academic and practitioner journals on a wide range of economic and financial market issues.

Simon Lowth, Chief Financial Officer of BT Group, and Director of the BTPS Trustee, said: “Although we say goodbye to Otto and thank him for his leadership during this period of change, we are looking forward to working with Jill through the next chapter.”

“We are also delighted to strengthen the board further by welcoming Andrew.”

Commenting on her appointment, Jill Mackenzie said: “In these first months since my appointment, I have witnessed the dedication with which the Trustees discharge their duties to the Scheme and its members. Otto is handing over a robust governance framework and a collaborative and supportive boardroom culture both of which stand us in good stead for the future.”

Outgoing Trustee Chair, Otto Thoresen added: “It has been a privilege to chair the BTPS Trustee Board and I am grateful to colleagues on the Board, both past and present, for the excellent support they have provided both to me and the Scheme during my time as Chair. I wish the Board and the Scheme’s members the best for the future.”

ENDS

Notes to Editors

• Press release announcing changes to the BTPS Trustee Board and the orderly succession of the Trustee Chair: Succession of the Chair of the BT Pension Scheme Trustee

The long-term investments that we’re making in fibre, 5G and digital systems will create a stronger, better company with brighter prospects.  It’s also the sort of commitment that the country badly needs for jobs, productivity and public services across the UK.

For once, however, I want to focus less on all the economic benefits of this technology and instead spend a moment on the economic underpinnings of our investment case and in particular the innovations in our taxation system without which it would not have been possible.

In general, the UK has suffered in recent decades from a comparative lack of corporate investment.  Businesses face a lot of short-term pressures.  The BT Board, in deciding to make enormous long-term commitments on full fibre worth some £15bn, had to do so in the knowledge that the investment would all be made up front with the returns some way off.  The nature of our business is that most of our investments take at least five years to generate a return; but in the case of fibre that period will stretch to at least a decade.

We took that tough decision to commit to fibre, nonetheless, in part because policymakers and regulators understood this point and acted on it. That’s where decisions on tax have been so important. 

The introduction of a tax ‘super deduction’ for infrastructure investors from April 2021 allowed BT Group to increase and accelerate our fibre rollout targets – from 20m to 25m homes. 

As economic conditions hardened over the winter of 2022-23, and the super deduction came to an end, those targets were under real pressure.  That’s why the replacement of the super deduction with a new policy of full expensing was also critical: it allowed us to accelerate our capital investment by some £300m per year, to stick to the 25m target and to simultaneously increase the pace at which we were connecting new customers to the new fibre network (itself a capital-intensive process).

I think politicians on all sides have now understood the important role that tax incentives can play in promoting investment.  In our industry, the results are very clear from the record-breaking pace at which Openreach is now rolling out the new network.

However, like the super deduction before it, full expensing is only a short-term intervention.  It is due to expire in two and a half years.  The investment demands and needs of the industry and the country won’t stop there, though.  There is a £20bn investment gap to close, for example, if government ambitions for 5G mobile services are to be met, and an ever-increasing need to make our networks more energy efficient, secure and resilient against future risks and threats.

The real game-changer would be to put these tax incentives on a permanent basis.  That would give businesses like BT Group genuine long-term certainty to plan and shift the investment environment in Britain from good to great.

I know the Chancellor is considering this as one option for next week’s Autumn statement.  He has said he would like to take this step when the economic conditions allow.  With billions of pounds of potential investment at stake, it’s also important to ask whether, as a country, we can afford not to.  This one measure could have a transformative effect in getting Britain building: not only digital infrastructure but much else besides.

1. The funding deficit at 30 June 2023 is £3.70bn, down from £7.98bn at the 2020 funding valuation following £4.36bn of deficit contributions
2.  Annual contribution amounts remain unchanged, at £600m in each financial year until 31 March 2030, and a final payment of £490m before 30 April 2030. In addition, BT Group will continue to make payments of £180m each year under the asset-backed funding arrangement agreed at the 2020 valuation

The BTPS will continue to de-risk its investment strategy through to 2034, providing more certainty over outcomes, and is on track to be fully funded by 2030.

BT Group has agreed to continue to provide the BTPS with legal protections to 2035 as part of a long-term funding framework. The changes made to contractual protections for the BTPS at this valuation are consistent with our statutory obligations under the Pension Schemes Act 2021. The amendments agreed to the BTPS’s existing stabiliser mechanism provide greater certainty that BTPS will achieve full funding and increase the likelihood of a future refund to BT Group.

Simon Lowth, BT Group Chief Financial Officer, said: “I am pleased that the BTPS continues to deliver in line with the long-term plan, despite the uncertainty and headwinds observed since 2020. Building on the framework agreed at the 2020 valuation allowed for a swift conclusion of the 2023 valuation.

“The agreement allows us to deliver on our strategic initiatives such as investing in our networks and transforming our business. And it is consistent with our funding priorities of investing in value enhancing opportunities, supporting our pension funds, paying progressive dividends and maintaining a strong balance sheet.”

Otto Thoresen, BTPS Chairman, said: “The BTPS continues to be on track to fulfil its commitments to members, despite high levels of macroeconomic volatility and uncertainty.

“Our deficit is reducing, funding levels have improved and we remain on course to be fully funded by 2030.”

Further information

1. Funding position

1.1 Deficit at 30 June 2023

1.1.1 The funding deficit at 30 June 2023 is £3.70bn.

1.1.2 A summary of the funding position and principal assumptions is shown in the table below.

_{¹ Assumed to be 1% below RPI until 28 February 2030 and in line with RPI thereafter.}

1.1.3 Average life expectancies, for members 60 years of age, are as follows.

1.1.4 As noted at the 2020 valuation, we expected headwinds to the BTPS deficit from two Government announcements which took place after 30 June 2020:

1.1.4.1 The reform of the Retail Prices Index reduced the value of the Scheme’s assets by more than it reduced the value of its liabilities; and

1.1.4.2 Government’s intention to pay higher pension increases to members of public sector pension schemes which automatically flow through to the BTPS increased the Scheme liabilities.

1.1.5 The reduction in the BTPS deficit since 30 June 2020 reflects £4.36bn of deficit contributions made over the period. ~£1.2bn of headwinds from the above regulatory changes were mitigated through asset returns and a fall in life expectancy.

1.1.6 Hedging and risk-reduction implemented by the BTPS in recent years has effectively protected the BTPS against certain risks: the increase in real interest rates over the period has had limited impact on the funding deficit, despite the significant reduction in the size of both the assets and the liabilities.

2. Investment strategy and return expectations

2.1 The 2023 valuation maintains the gradual de-risking approach used for the 2017 and 2020 valuations, which assumed the BTPS would reach a low risk investment strategy by 2034, consisting predominantly of bond and bond-like investments. As at 30 June 2023, the BTPS held 71% of its assets in cash flow matched assets and 29% in growth assets.

2.2 The discount rate at 30 June 2023 has been set consistently with the 2017 and 2020 valuations. It is derived from prudent investment return expectations above a risk-free yield curve based on gilt and swap rates, reflecting the investment strategy over time. It is equivalent to using a flat discount rate of 1.0% per year above the risk-free yield curve, or 5.3% per year.

3. Funding

3.1 The £3.70bn funding deficit is on track to be eliminated by June 2030 through annual contributions from BT Group and payments from an Asset Backed Funding (“ABF”) arrangement.

3.2 An ABF arrangement, which was set up in 2021 as part of the last valuation agreement, pays £180m into the BTPS every year until June 2034. The stream of payments is financed through dividends from EE Limited, and shares in EE Limited provide security over the payment stream.

3.3 If the BTPS reaches full funding as calculated by the Scheme Actuary at any 30 June, subsequent payments to the BTPS from the ABF will cease.

3.4 The present value of the full payment stream was £1.2bn at 30 June 2023. The market value was £1.1bn at 30 June 2023 and was included in calculating the funding deficit. The £0.1bn difference reflects the possibility that the full payment stream will not be required.

3.5 BT Group received tax relief at inception of the ABF based on the original market value of £1.7bn, and will receive further tax relief if payments are made to the BTPS in excess of this amount.

3.6 Payments from 1 July 2023 to address the £3.70bn funding deficit are shown in the table below.

_{¹ Payments stop once deficit eliminated.   
² Excludes a £500m direct contribution and a £180m ABF payment made to the BTPS before 30 June 2023   
³ Direct payments are due by 30 April each year. £10m per year is payable to the BTPS. BT Group currently intends to the pay the balance into the co-investment vehicle.}

3.6 BT Group will continue to make annual contributions towards the cost of administering the BTPS (down from £30m pa at the 2020 valuation to £27m pa), and Pension Protection Fund levies (which have reduced substantially since the last valuation, from £30m in 2020 to around £4m in 2023).

4. Stabiliser mechanism

4.1 As part of the 2020 valuation, BT Group and the BTPS put in place a stabiliser mechanism, comprised of a co-investment vehicle and future funding commitments.

4.2 The co-investment vehicle provides BT Group with some protection against the risk of overfunding by allowing money to be returned if not needed by the BTPS, enabling BT Group to provide upfront funding with greater confidence.

4.3 The future funding commitment agreed triggers an additional stream of contributions should the deficit fall materially behind plan.

4.4 Co-investment vehicle

4.4.1 Payments made by BT Group into the co-investment vehicle will be invested as if part of the overall BTPS investment strategy. The value of the assets held in the vehicle will be included in the assets of the BTPS for the purposes of calculating the both the funding deficit and the IAS 19 deficit.

4.4.2 BT Group is eligible for future refunds if some of the co-investment vehicle funds are surplus to the BTPS’s requirements, unless the BTPS, acting prudently but reasonably, decides to defer or reduce these payments. The period over which this will be assessed has been changed from a single date, 30 June 2034, to a series of dates between June 2032 and June 2042, improving the likelihood of a refund for BT Group as outcomes are no longer dependent solely on market conditions at a single date. BT Group will receive tax relief if and when any funds are paid to the BTPS from the vehicle.  BT Group is taxed on the investment gains in the co-investment vehicle, which are subsequently tax deductible if paid to the BTPS.

4.5. Future funding commitment

4.5.1 In the potential scenario that the funding deficit falls behind plan, i.e. the recovery plan is no longer sufficient to meet the deficit, BT Group has agreed additional contributions which will automatically be payable.

4.5.2 An annual payment stream is switched on should two consecutive semi-annual reviews of the funding position show the funding deficit has fallen behind plan. The reviews will be carried out every June and December, with the first review to take place at 31 December 2023.

4.5.3 Annual payments of £150m (2020: £150m) commence if the deficit is £1bn behind plan before the 2026 valuation, increasing to £300m (2020: £200m) if the deficit is £2bn behind plan before the 2026 valuation. Payments which have been triggered will be published as part of BT Group’s financial statements.

4.5.4 The first payment is due within 12 months of the payments being switched on. Payments will stop once the semi-annual reviews show the deficit is back on plan. Payments can switch on again if the deficit position subsequently deteriorates. Any payments under this mechanism cease by 30 June 2034.

5. Protections

BT Group has agreed to continue to provide the BTPS with certain protections to 2035.

5.1. Shareholder distributions

5.1.1 For the next three years, continuation of the protection which provides additional payments to the BTPS by the amount that shareholder distributions exceed a threshold has been agreed. The threshold allows for 10% pa dividend per share growth based on dividends of 7.7p per share in FY23, adjusted to reflect the interim dividend declared at our half-year results.

5.1.2 BT Group has agreed to consult with the BTPS if it considers share buybacks for any purpose other than relating to employee share awards.

5.1.3 BT Group has agreed to consult with the BTPS before making any shareholder distributions in any of the next 3 years if both annual normalised free cashflow of the Group is below £1bn in the year and distributions within the year would be in excess of 120% of the threshold in 5.1.1; or before making a special dividend.

5.2. Material corporate events

5.2.1 If in any financial year BT Group generates net cash proceeds from disposals above a threshold, BT Group will pay extra contributions. The proceeds are net of acquisitions and the threshold is £750m until the 2026 valuation.

5.2.2 The amount payable is one third of the net cash proceeds.

5.2.3 BT Group will continue to consult with the BTPS if: it considers making acquisitions or disposals with a consideration of more than £1bn in any 12 month period; it considers making a Class 1 transaction which will have a material impact on the  BTPS; or it is likely to be subject to a takeover offer.

5.2.4 BT Group has also agreed to consult the BTPS should there be other corporate or third-party events which may have a materially detrimental impact on BT Group's covenant to the BTPS and use best endeavours to agree appropriate mitigation.

5.3. Negative pledge

5.3.1 Continuation of the protection that future creditors will not be granted superior security to the BTPS in excess of £0.5bn, to cover any member of the BT Group. Business as usual financing arrangements do not trigger this protection.

Philip Jansen, Chief Executive, commenting on the results, said    

“These results show that BT Group is delivering and on target: we’re rapidly building and connecting customers to our next generation networks, we’re simplifying our products and services, and we’re now seeing predictable and consistent revenue and EBITDA growth.

“We’ve strengthened our competitive position with the launch of both New EE and our renewed strategy in Business, and Openreach has now built full fibre broadband to more than a third of the UK's homes and businesses with a growing connection rate. Our transformation programme has now delivered £2.5bn in annualised savings,  well on track to meet our £3bn savings target by FY25.

“Our delivery in the first half means we are confirming our financial outlook for FY24 with normalised free cash flow now expected towards the top end of the guidance range, and we are declaring an interim dividend of 2.31 pence per share.  BT Group has a bright future and I’m pleased to be handing the baton to Allison Kirkby early in the new year. She knows the sector, she knows the company and she’s the right person to lead BT Group from this position of operational strength.” 

Continued strong execution of our strategy

• FTTP build rate accelerated to 66k per week delivering a record of 860k premises passed in the quarter, FTTP footprint is now expanded to 12m premises with a further 6m where initial build is underway
• Strong customer demand in Openreach for FTTP with net adds of 364k in Q2, bringing take-up rate to 33%
• Openreach broadband ARPU grew by 10% year-on-year due to price rises and increased volumes of FTTP; Openreach broadband line losses of 255k in H1, a 1% decline in the broadband base; whilst we continue to target a decline of around 400k in FY24, softer market conditions increase the risk that losses will be above this level
• Consumer broadband ARPU for the year to date increased 4% year-on-year and Consumer postpaid mobile ARPU for the year to date increased 9% year-on-year; churn for the year to date remains stable for both broadband and postpaid mobile at 1.1% and 1.0% respectively
• In October 'New EE' was launched  with a modern digital platform and a set of converged products and services
• Retail FTTP base grew year-on-year by 48% to 2.2m of which Consumer 2.1m and Business 0.1m; 5G base 9.9m, up 42% year-on-year
• Cost transformation on track with gross annualised cost savings of £2.5bn since April 2020 against our £3bn target, with a cost to achieve of £1.3bn against a target of £1.6bn
• Continued focus on creating standout customer experiences with BT Group NPS of 22.7, up 1.8pts year-on-year

Adjusted¹ Revenue and EBITDA growth:

• Reported revenue £10.4bn, in line with the prior year; adjusted¹ revenue £10.4bn, up 3% on a pro forma² basis due to increased fibre-enabled product sales, inflation-linked pricing and improved lower margin trading in Business partially offset  by legacy product declines
• Adjusted¹ EBITDA £4.1bn, up 6%; and up 4% on a pro forma² basis with revenue flow through and strong cost control more than offsetting cost inflation and one-off items in the prior year; Business EBITDA decline due to increased input costs and legacy high-margin managed contract declines
• Reported profit before tax £1.1bn, up 29% largely due to factors driving adjusted¹ EBITDA growth
• Reported capital expenditure ('capex') £2.3bn, down 11% with lower fixed network spend driven by lower FTTP build unit costs; cash capex of £2.5bn also  down 11%
• Net cash inflow from operating activities £2.3bn; normalised free cash flow¹ £0.5bn, up £0.4bn primarily due to £0.2bn increase in adjusted EBITDA¹ and £0.3bn decrease in cash capital expenditure partly offset by £(0.1)bn net working capital outflow; net working capital movements includes £359m from the sale of cash flows of contract assets relating to mobile handsets as well as £(220)m from lower utilisation of a supply chain financing programme
• Net debt £19.7bn, (31 March 2023: £18.9bn), increasing mainly due to pension scheme contributions with net free cash flow for the first half of FY24 substantially offsetting the payment for the final  dividend of FY23
• Gross IAS 19 deficit of £3.9bn, up from £3.1bn at 31 March 2023 mainly due to the increase in real interest rates and narrowing of credit spreads over H1, partly offset by deficit contributions
• Interim dividend for FY24 of 2.31 pence per share (pps) in line with our policy of paying 30% of prior year's full year dividend
• FY24 Outlook: Adjusted¹ revenue and EBITDA growth on a pro forma basis; capital expenditure excluding spectrum of around £5.0bn; normalised free cash flow towards the top end of £1.0bn-£1.2bn range.

Customer-facing unit updates

 
_{¹ See Glossary   
² See 'Prior period comparatives' section below for more information on pro forma and re-presented measures.  
³ Net debt was £18,859m at 31 March 2023}

Prior period comparatives

Throughout this release, comparative financial information for the half year to 30 September 2022 ('FY23') has been re-presented to reflect the merger of our Global and Enterprise business units to form Business; and the change in the methodology used to allocate shared Network, Digital and support function costs across our units, which improves the relevance of our financial reporting by better allocating internal costs to the drivers behind those costs. These adjustments are made pursuant to IFRS accounting requirements, for more information see note 1 to the condensed consolidated financial statements on page 15 .

In addition, the group and operating review sections of this release present comparative financial information for the Consumer customer-facing unit and BT Group overall on an unaudited 'pro forma' basis. This reflects adjustments that estimate the impact as if trading in relation to BT Sport has been equity accounted in FY23, akin to the Sports JV being in place historically. Analysis on a pro forma basis enables comparison of results on a like-for-like basis.

The Additional Information on page 29 presents a bridge between financial information for the half year to 30 September 2022 as published on 3 November 2022, and the comparatives presented in this release. For further information see bt.com/about for separate publications covering the formation of Business and cost allocation changes, (published 27 June 2023), and the pro forma adjustments (published 18 October 2022).

Glossary

We assess the performance of the group using a variety of alternative performance measures. Reconciliations from the most directly comparable IFRS measures are in Additional Information on pages 29 to 31.

Forward-looking statements – caution advised

Certain information included in this announcement is forward looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward looking statements. Forward looking statements cover all matters which are not historical facts and include, without limitation, projections relating to results of operations and financial conditions and the Company’s plans and objectives for future operations. Forward looking statements can be identified by the use of forward looking terminology, including terms such as ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, ‘plans’, ‘projects’, ‘goal’, ‘target’, ‘aim’, ‘may’, ‘will’, ‘would’, ‘could’ or ‘should’ or, in each case, their negative or other variations or comparable terminology. Forward looking statements in this announcement are not guarantees of future performance. All forward looking statements in this announcement are based upon information known to the Company on the date of this announcement. Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward looking statements, which speak only at their respective dates. Additionally, forward looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), the Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.  
 

 Download PDF - Results for the half year to 30 September 2023

BT has today announced plans to roll out its new home phone service, Digital Voice, across Greater London during November and December.

Having already started the regional rollout of Digital Voice in the East Midlands, Yorkshire and the Humber, Northern Ireland and the North West, BT will now focus efforts on engaging with communities across the nation’s capital.

An industry-wide shift from analogue to digital landlines will see BT and many other telecoms operators in the UK provide services over a broadband line, similar to work taking place in many other countries around the world. 

This once-in-a-generation upgrade to future-proof the UK’s landlines is essential and will replace technology that is fast becoming obsolete. The landline is here to stay, and for the majority of customers, making the switch simply involves plugging your phone into a broadband router instead of into a wall-mounted phone socket, bringing new benefits such as advanced spam call blocking. 

Customers in Greater London will be contacted at least four weeks in advance before making the switch, to ensure they are ready to move to Digital Voice. For almost all customers, Digital Voice will have no impact on how they use their home phone. They’ll still have the same service, and price plan and bills will stay the same. In addition, more than 99% of phone handsets work with Digital Voice and for those that won’t, BT has a range of handsets that customers can order. 

Vicky Hicks, Senior Engagement Manager at BT, said: “BT customers in Greater London will benefit from a tried and tested service, with around two million BT customers already having made the switch and benefitting from the many advantages of digital home phones from advanced scam call filtering capabilities to crystal-clear call audio. 

“For almost everyone, moving to Digital Voice will be a simple and free transition with no home installation work required. If you feel you need additional support with the transition or you think you are vulnerable, please do tell us. We will be with you every step of the way.” 

BT won’t be proactively switching anyone who falls under the below criteria, where it has this information available:

• Customers with a healthcare pendant
• Customers who only use landlines
• Customers with no mobile signal
• Customers who have disclosed any additional needs.

Customers who fall into any of these categories should contact BT to ensure their data is up to date.

Customers over the age of 70 are not initially being proactively switched to Digital Voice. However, since July 2023, BT has been trialling switching customers between 70-74 who live in urban areas and are ready to make the switch, i.e. they have the latest broadband hub and are not frequent landline users. These trials have gone well to date, with 98% of customers choosing to make the switch.

Engaging with the Greater London community 

BT’s regional approach will be supported by general awareness communications, and advertising campaigns, delivered across local, regional and national media to explain to customers the simple steps required to make the move to Digital Voice. 

Upcoming engagement activities in Greater London include: 

Townhalls: BT will be present in townhalls across the region in November and early December to address customer questions on the ground. Customers will be able to speak to BT advisors, test Digital Voice products as well as take part in digital skills training. The first townhalls to be confirmed are as follows: 

• 7th November - Hornchurch Library, 44 North Street, Hornchurch, RM11 1TB
• 14th November - Hatch End Suites (in car park) Harrow Arts Centre, 171 Uxbridge Road, Hatch End, HA5 4EA
• 5th December - St. Mildreds Church, 30 Bingham Road, Croydon, CR0 7EB
• 11th December - Dugdale Arts Centre (Thomas Hardy House), 39 London Road, Enfield EN2 6DS

Pop-up Events: BT will tour every borough over the course of November and early December to ensure customers across Greater London and surrounding areas can speak to BT staff about the switch and try out the new technology for themselves. Confirmed dates and locations: 

• 7th-8th November - Bexley - Broadway Shopping Centre, Broadway, Bexleyheath, DA6 7JN
• 7th-8th November - Hoddesden - Stanboroughs Conservative Club, Conduit Lane, Hoddesdon, EN11 8EP
• 9th-10th November - Sutton - Dobbies Garden Centre, Woodcote Green, 4a Woodmansterne Lane, Wallington, SM6 0SU
• 9th-10th November - Welwyn Garden City - Morrisons, 40 Black Fan Road, Welwyn Garden City, AL7 1RY
• 11th November - Greenwich - Greenwich Central Library, 12 Lambarde Square, London, SE10 9HB
• 11th-12th November - St Albans - The Maltings Library, The Maltings, St Albans, AL1 3JQ
• 13th-14th November - Lewisham - Carenden Rise Car Park, London, SE13 6BJ
• 13th-14th November - Watford - Morrisons, Ascot Road, Watford, WD18 8AA
• 15th-16th November - Southwark - East Street Market, East Street, London, SE17 1EL
• 15th-16th November - Hounslow - Osterley Garden Centre, Windmill Lane, Osterley, Isleworth, TW7 5PR
• 17th November - Hillingdon - Ickenham Library, long Lane, Ickenham, Uxbridge, UB10 8RD
• 17th-18th November - Lambeth - Lambeth Library, 180 South Lambeth Road, London, SW8 1QP
• 19th-20th November - Harrow - Harrow Garden Centre, Headstone Lane, Harrow, HA2 6NB
• 21st-22nd November - Bromley - 162 High Street, Bromley, BR1 1HE
• 21st-22nd November - Brent - Brichen Grove Garden Centre, Birchen Grove, London, NW9 8RY
• 23rd-24th November - Reigate - Woodhatch Community Centre, Whitebeam Drive, Reigate, RH2 7LS
• 23rd-24th November - Barnet - The Spires, 111 High Street, Barnet, EN5 5XY
• 25th-26th November - Epsom - Tadworth Community Centre, Preston Manor Road, Epsom, Tadworth, KT20 5FB
• 25th-26th November - Camden - Camden Town Centre, Judd Street, London, WC1H 9JE
• 27th-28th November - Weybridge - Weybridge Garden Centre, New Haw Road, Weybridge, Addlestone, KT15 2BU
• 27th-28th November - Islington - Islington Town Hall, Upper Street, London, N1 2UD
• 29th-30th November - Merton - South Mitcham Community Association, Cobham Court, Haslemere Avenue, Mitcham, CR4 3PR
• 1st-2nd December - Enfield - British Garden Centres Enfield, Cattlegate Road, Crews Hill, Enfield Middlesex, EN2 9DX
• 3rd-4th December - Wandsworth - Battersea library, 265 Lavender hill, London, SW11 1JB
• 5th-6th December - City of Westminster - Church Street Library, 67 Church Street, London, NW8 8EU
• 7th-8th December - Kensington & Chelsea - Brompton Library, 210 Old Brompton Road, London, SW5 0BS
• 11th-12th December - Richmond Upon Thames - Hillier Garden Centre, Syon Park, Park Road, Brentford, TW8 8JF
• 11th-12th December - Redbridge - The Exchange Shopping Centre, High Street, Ilford, IG1 1RS
• 13th-14th December - Ealing - Ealing Town Hall, New Broadway, London, W5 2BY
• 15th-16th December - Twickenham - Richmond Rugby Club, Twickenham Road, Richmond, TW9 2SF

The remaining regions and nations set to make the switch over the next year can be found on BT’s press room: BT announces regional rollout schedule for Digital Voice.

Full information of dates and which boroughs, towns and cities will be hosting BT events will be available on the Digital Voice website: www.bt.com/digital-voice. 

ENDS

2^nd October 2023

BT Group has teamed up with lexicographer and queen of Dictionary Corner Susie Dent to create a Digital Dictionary, in order to help older and digitally excluded people get a better understanding of online jargon.

New research conducted by BT Group found that one in six older people admit to feeling “baffled” by digital terms, and 78% feel left behind by their lack of knowledge. In response, Susie Dent, BT Group and UK charity AbilityNet have partnered to create the Digital Dictionary, which identifies the most commonly misunderstood words used on the internet, and provides simple explanations.,

The Dictionary contains 21 words in total, including the likes of hyperlink (41% misunderstood), QR code (24%) and the cloud (23%). Lack of understanding around these common online terms creates a significant issue, with the survey of 2,000 older people finding that even though they spend just five and a half hours a week online, over half (55%) wish that they were more knowledgeable when it comes to using the internet.

38% of older people said they experienced feelings of frustration when unable to understand digital terms, and in fact, over one in 10 respondents think online terms are so complicated that a foreign language would be easier to learn.

Furthermore, 16% of people worry that others will see them as a ‘burden’ if they ask for help, especially as over one in ten (16%) admit that family members have got irritated when having to explain to them.      

Lexicographer, Susie Dent said: “Whilst so much of modern life seems easier online – whether that’s booking a doctor’s appointment, managing your finances, or doing the weekly shop – we’re forgetting one crucial thing: it’s only easier if you understand the language the web is built on.

So, I’ve teamed up with BT Group and AbilityNet to create this Digital Dictionary, a guide that simplifies the language of the internet, with the aim of helping us all make the most of life in an online world.”

Victoria Johnson, Social Impact Campaigns Director, BT Group said: “It’s a shame to see from the research that older adults feel they are a burden when asking for help navigating their way online. We want to create a more inclusive society by helping them make the most of life in the digital world.

We hope that both the Digital Dictionary and variety of online guides on offer will give people the confidence to start exploring the internet and give them all the training and support needed to live life to the fullest in the digital age.”

Sarah Brain, Free Service Manager at AbilityNet said: “For anyone who didn’t grow up with smartphones or super-fast broadband, being online can feel like a whole new world to some. Resources such as the Digital Dictionary are helping to address the need to support older generations towards understanding ever-changing online jargon.”

Earlier this year, BT Group announced a new partnership with the charity AbilityNet to help improve the digital skills of 4,000 older and digitally excluded people across the UK in 2023. The ‘Senior Skills’ programme will deliver more than 1,000 group and one-to-one training sessions to those who need it most in regions across the UK.

As part of Senior Skills, BT Group has created a variety of online guides that will help give anyone the knowhow and confidence to start exploring the internet, whilst inspiring them to unlock the possibilities from using it. Each guide comes with both a digital helper section (for the volunteer) and a learner section too, which can easily be downloaded and printed at home for convenience.        

Visit www.bt.com/seniorskills to view the Digital Dictionary and find all the training and support needed to live life to the full in the digital age.

Research of 2,000 older people revealed the top 30 online jargon they don’t understand:

1. Smishing
2. Vishing
3. Hyperlink
4. USB-C
5. Ransomware
6. URL
7. Phishing
8. QR code
9. Cloud
10. Malware
11. IP address
12. Cookies
13. Streaming
14. Tabs
15. Processor
16. Spam
17. Antivirus
18. Hardware
19. Browser
20. Upload
21. USB
22. Social media
23. Emoji
24. Webpage
25. App
26. Google
27. Download
28. Search Engine
29. Software
30. Smartphone

BT has today announced the next phase in the rollout of its new home phone service, Digital Voice, to UK customers on a region-by-region basis.

Following successful pilots in Salisbury (Wiltshire) and Mildenhall (Suffolk), BT announced plans earlier this year to start contacting customers on a phased region-by-region basis across the country. Starting with the East Midlands in July, Yorkshire and the Humber in August and Northern Ireland in September, customers are contacted at least four weeks in advance before making the switch, to ensure that they are ready to move to Digital Voice.

Today, BT has announced the remaining regions and nations set to make the switch over the next year: 

Autumn 2023

• North West
• London

Spring 2024

• West Midlands
• South East
• Wales
• East Anglia

Summer 2024

• North East
• Scotland
• South West

Throughout the programme, BT will also be contacting some broadband customers in England, inviting them to switch their landline to Digital Voice in advance of local and regional campaigning in their area.

The landline is here to stay

The move comes as part of an industry-wide shift from analogue to digital landlines, where calls are made over a broadband line, and will see BT and nearly all other landline operators in the UK, including Virgin Media O2, supporting their customers in making the switch by the end of 2025.

The landline isn’t going away but is being upgraded to replace the decades old analogue technology that is increasingly unreliable and is no longer supported by suppliers and manufacturers. Customers risk facing increased service outages if this urgent infrastructure upgrade isn’t carried out now by BT and other operators. This new future-proof, digital landline technology is also a major step towards preparing the country for a Full Fibre future, in support of the UK Government’s gigabit connectivity ambitions.

Digital Voice will have no impact on how BT customers use their home phone and will not cost any more than customers pay today. They’ll still have the same service, and price plans and bills will stay the same. In addition, more than 99% of phone handsets work with Digital Voice and for those that won’t, BT has a range of handsets that customers can order.

In support of its regional approach and building on the successful starts in the East Midlands and Yorkshire and Humberside, BT is explaining to customers the simple steps required to make the move to Digital Voice through local and regional media and advertising campaigns. BT will also have a high street presence and hold local ‘town hall’ drop-ins to answer customer questions in person.

Initially, BT won’t be proactively switching anyone who falls under the below criteria, where it has this information available:

• Customers with a healthcare pendant
• Customers who only use landlines
• Customers with no mobile signal
• Customers who have disclosed any additional needs.

Customers who fall into any of these categories should contact BT to ensure their data is up to date.

Customers over the age of 70 are not being proactively switched to Digital Voice. However, since July 2023, BT has been trialling switching customers between 70-74 who live in urban areas and are ready to make the switch, i.e. they have the latest broadband hub and are not frequent landline users. These trials have gone well to date, with 98% of customers choosing to make the switch, and pending further consultation with the Digital Voice Advisory Group, BT will look to extend this trial nationally.

Lucy Baker MBE, All-IP Director, BT Consumer, said: “Through the work with our Digital Voice Advisory Group and our regional engagement, we’ve held 40 events, placed local radio and newspaper ads and met over 4,000 customers in person.

“We understand that any change can be unsettling, and we’re here to support our customers every step of the way. First-hand experience shows that once people have the facts and have spoken to one of our advisors, they feel confident to make the switch.

“If we’ve not been in touch or visited your area yet, don’t worry. We’ll be in touch when it’s time to switch. For anyone who has any issues, questions or concerns, then I’d encourage them to get in touch and let us know.”

Sarah Brain, Free Services Manager at AbilityNet, said: “Here at AbilityNet our staff and volunteers have been supporting BT to raise awareness of Digital Voice around the UK, and in particular to help those more nervous about the switch to give them the reassurance they need to make the move. 

“As a charity we support older and disabled people with technology at home every day, so we know that the world of tech can seem daunting.  The roadshows have been a great opportunity for us to work alongside BT to support those customers, and the ‘in person’ aspect is so important to answer any questions and concerns individual to them.”

Supporting customers every step of the way

BT has established and continued to work closely with its Digital Voice Advisory Group* – an association made up of charities and representative groups – who have been advising on the needs of customers most affected by the switch. Feedback from this group and its members has helped to shape the approach the company is taking.

BT and the industry, with the support of industry body, Tech UK, have been engaging with healthcare pendant and burglar alarm providers who will also need to upgrade their customers’ equipment to ensure that the most vulnerable customers continue to get the service they need.

A host of additional support and services will also be available including:

• The ability for customers to nominate a family member, friend or carer who will receive all the information about switching on their behalf.
• When vulnerable customers start to make the switch, they'll automatically receive equipment and an engineer appointment. Their switch won't go ahead until they have spoken to an advisor and booked an appointment.

For peace of mind in the event of a temporary power cut, BT will provide additional resilience to those who need it most, including:

• Free battery back-up units for Digital Voice customers with additional needs, who identify as vulnerable and/or live in an area without mobile signal. Customers without additional needs can also choose to purchase a battery back-up unit. 
• A hybrid phone that can switch to a mobile network and has an in-built battery for Digital Voice customers without a mobile phone.

In readiness for the December 2025 deadline, Openreach have taken steps to end the sale of new analogue services across the UK. That means when customers who have access to broadband sign up for a new contract – or when they switch, upgrade or re-grade their service via their provider – they’ll be moved onto a new digital landline rather than an analogue one.

Customers without broadband will not be switched to a digital landline until they are able to. BT will install new equipment in the local telephone exchange that will allow customers to use their phone in the same way as they do today. This temporary solution will keep customers connected until they are able to make the switch to Digital Voice and will help BT to retire its analogue service by the end of 2025.   

Together with Government, Ofcom, telecoms providers, charity partners and key industry groups, BT is working hard to ensure that everyone knows about the change, how they will be impacted and what they need to do as a result.  Further information about the industry wide change can be found here: UK transition from analogue to digital landlines - GOV.UK (www.gov.uk)

To find out more about BT’s new home phone service, Digital Voice, please visit: www.bt.com/digital-voice

ENDS

Notes to Editors

*Members of the Digital Voice Advisory Group include Age UK, Department of Health and Social Care, Independent Age, Rural Services Network, and Which? amongst others. This group of stakeholders have been incredibly important in helping to shape our plans for how we approach the move to digital home phones.

Useful links:

• UK Government website: UK transition from analogue to digital landlines - GOV.UK (www.gov.uk)
• Ofcom: Moving landline phones to digital technology: what you need to know - Ofcom
• Which?: Digital Voice and the landline phone switch-off: what it means for you - Which?
• Age UK: Changes to landline telephones | Age UK
• Local Government Association: Digital switchover hub | Local Government Association

Case study: Marlene’s story

Marlene came to our town hall event in Leeds after receiving her invitation to find out about Digital Voice. She has her landline and broadband with BT, but only uses broadband for on demand TV programmes, so her telephone is her only means of keeping in touch with her loved ones. Here’s what she had to say to Alexander Clark and Macauley Green from our Customer Service team:

“It was so helpful to have it explained to me personally and I could ask questions. I’m not great with technology – I can’t even send a text message! My daughter had broadband connected for me so I can keep up with all my programmes, but I wouldn’t know where to begin surfing the web!

“Now I understand what’s happening with the telephone lines it’s a lot like when the television went digital and I didn't need my portable aerial anymore.

“At first, when I heard about Digital Voice I was worried I would lose my landline but Alexander and Macauley put my mind at rest that I’ll still be able to use my home phone and keep in touch with my family and friends - it will just be even better.”

Any of our customers who have been contacted about making the switch (regardless of their age) has the ability to call us with any questions or concerns and can defer their migration for the time being.

In 2020, BT Group committed to placing diversity and inclusion at the heart of the selection process for its next legal panel, which will be confirmed in 2024, by promising that the firm with the best results in these fields would see its place on the roster automatically renewed. Since then, BT Group has worked collaboratively with all of its panel firms to understand not only how they’re increasing diversity in their workforce, but also the steps they’re taking to foster inclusivity in their working environments.

While many firms were identified as making excellent progress in these areas, Addleshaw Goddard, BCLP, Osborne Clarke and CMS were distinguished by their ability to provide clear evidence of actions they’ve taken across various levels of seniority and geographic regions. BT Group also concluded that Addleshaw Goddard’s range of ideas, innovations, attention to detail and overall enthusiasm helped them to beat other strong contenders to the top position.

Sabine Chalmers, General Counsel, Director of Regulatory Affairs and Company Secretary for BT Group, said: “When we began looking at our next legal panel, we wanted to ensure that all the firms involved are playing an active role in building a more diverse and inclusive legal industry. Throughout the assessment process, we were delighted to see that this is an issue that many firms are already taking seriously. We’re delighted to be able to confirm that against very strong competition Addleshaw Goddard were selected as the leading firm in driving D&I, and we look forward to working with them as a part of our next legal panel.”

BT Group continues to take a variety of measures to drive D&I across the company. Having committed to championing inclusion in its Manifesto, in July BT Group appointed Fiona Vines as its new Chief Inclusion, Equity & Diversity Officer to further drive initiatives in these areas. All its senior managers’ compensation now includes a D&I metric, and the company provides updates on its D&I performance in all of its major reports to the external market.
 

 BT Group today reaffirmed its commitment to Glasgow, and Scotland, as it officially reopened its Clydeside building, in the heart of the city, following a multi-million pound refurbishment.

The office, known as Alexander Bain House, which first opened in 2001, is one of the original tenants of Glasgow’s International Financial District (IFSD). As a key location in the company’s future plans, the significant refurbishment has created a fantastic, modern workplace, which will now be home to around 2,000 colleagues from BT Group, which includes EE, BT and Openreach.

The official reopening of the building also coincides with the launch of the new Scottish Wide Area Network (SWAN) contract. BT Group, which is now the sole connectivity provider for public sector organisations including schools, hospitals, GP surgeries, pharmacies and councils across Scotland, has launched services for members as well as a new website www.swan.scot which includes an informative video.

Glasgow was named as a significant long-term location for BT Group in 2020 as part of the company’s ‘Better Workplace Programme’ – the largest workplace improvement and consolidation scheme of its type ever undertaken in the UK. The five-year programme, which will be complete next year, is seeing BT Group rationalise hundreds of its offices across the UK and establish an estate of modern workspaces. The group is also undertaking a multi-million pound development of its new contact centre in Dundee.

The Clydeside building, with panoramic views of the waterfront, is close to transport hubs including Glasgow Central Station, as well as providing cycle parking for colleagues. It boasts state of the art technology, flexible work and collaboration areas, wellbeing and relax and refuel areas. These shared workplaces are central to the company’s future, providing environments for colleagues to come together to collaborate, learn, develop and share their experiences. BT Group believes that inspiring office environments, combined with a flexible approach to home working, will play a vital role in its future and in the local economies of its key hub locations.

Commenting on the official opening, Richard Lochhead MSP, Minister for Small Business, Innovation, Tourism and Trade, said: “I warmly welcome BT Group’s continued investment in Scotland and congratulate it on the official reopening of Alexander Bain House. The thousands of jobs that BT Group has created in Glasgow continue to make a meaningful contribution to the city’s economy and I am glad that these colleagues will continue to thrive here.

“The Scottish Government and BT Group are working together to deliver connectivity across Scotland – from our work with Openreach in delivering broadband through our Reaching 100% programme, to EE’s strong support of our Scottish 4G Infill Programme, tackling mobile coverage gaps in rural areas.”

Brent Mathews, BT Group’s Property & Facilities Services director, added: “We’re really excited for our colleagues in Alexander Bain House following this multi-million pound investment in our Glasgow flagship office. We’re bringing our people together in an impressive and modern environment, transforming the way our teams work to benefit our colleagues, customers and shareholders.

“We really want our colleagues to be proud of where they work and to feel part of something brilliant, inspiring them to continue to do the best that they can for our customers. 

“This investment also marks a significant commitment in Glasgow and in Scotland. As a major employer in the city, our presence will support local economic growth and employment opportunities. It also demonstrates our continued commitment to leading the way in connecting Scotland, unlocking a new era of connectivity with the launch of the SWAN website and services.”

Councillor Susan Aitken, Leader of Glasgow City Council, said: “Glasgow is one of the UK’s most successful centres to do business, with an increasing international profile and reputation as a leader in attracting and retaining talent and a skilled workforce.

“This multi-million-pound investment by BT Group in its Glasgow HQ really enhances our competitiveness, adding real value to our city and its economy.

“BT Group’s original decision over 20 years ago to locate a major headquarters in Glasgow was a real vote of confidence in a changing city.  This latest investment by a truly global organisation reaffirms that commitment and it’s clear that BT Group appreciates the value of its long-term presence in our city.”

The business is also making record investments in next generation networks, such as full-fibre broadband via Openreach and 5G via its mobile network EE. This once in a generation upgrade to Scotland’s digital infrastructure will support the region's economic growth ambitions and ensure Scottish businesses and public sector organisations are able to take full advantage of the latest technologies and digital possibilities.

ENDS

Notes to Editors

BT Group’s new state-of-the-art hub in Glasgow is part of the company’s Better Workplace Programme, one of the largest workplace improvement schemes of its type ever undertaken in the UK. The five-year programme will see the company shift from having around 300 locations in the UK to around 30, with a focus on creating new, modern workspaces. The company has already opened new flagship offices in London, Birmingham and Bristol, and a new regional hub is opening soon in Manchester.

Today, BT Group reveals the growing importance for school leavers to possess digital skills for the workplace - as new research of company bosses shows they value them just as highly as a university degree.

Nearly four in 10 (39%) UK CEOs and senior decision-makers said basic digital skills are the asset that makes a young person most employable (39%), compared to non-vocational university degrees (22%).

It comes at the time of the year when many students will be considering their options after finding out their A-Level results last week. 

BT Group’s polling of business leaders suggests that students possessing basic digital skills can be as attractive to employers as having a university degree.

Nearly three quarters (72%) of UK business leaders said a person with digital skills has as good a career prospect as someone holding a degree, while 67% said basic digital literacy  is the single most important skill their business seeks in young employees.

Skipping Oxbridge for ‘Toksbridge’, this TikTok generation is putting its knowledge of tech to good use and ranks highly for social media skills. Yet despite their tech knowledge, 65% of business leaders say 16-24 year-olds struggle when it comes to basic digital skills.

Over half (56%) of the businesses BT Group spoke with find young people often struggle with simple computer-based workplace tasks, such as creating a spreadsheet, writing a professional email, or operating workplace software.

Thankfully, the jump from knowing how to use a smart phone or games console to learning business-ready digital skills can be easy

Anthony Ogbanufe, 25, from South London, chose to skip university and instead enrolled on BT Group’s apprenticeship scheme, where he found his knowledge of gaming helped him to thrive as a product designer:

“Being a big gamer helped me because I could understand how things should work well for users and it gave me intuitive design insights, which was useful when I helped redesign the BT gaming page,” he said. 

BT Group’s Work Ready events and its partnership with FastFutures is helping to tackle the UK’s digital skills gap by helping young people build on their experience and confidence of using tech to learn new skills that will see them succeed in the workplace.

Nearly eight out of 10 (79%) of UK business leaders said that an employee who has learnt extra digital skills ‘stands out’ among similar candidates.

Despite having good grades, Laura Jenkinson, a 22-year-old trainee accountant from Stroud, decided to skip university to start her career. She said having digital skills helped her to thrive in a role that usually requires a degree.

“It took me a while to get to grips with things but I was glad I had stuck to my guns. Being tech savvy helped me in my first position a lot – it was something I could bring to the job when I hadn’t had any experience yet,” she said.

The UK has one of the widest digital skills gaps of any developed country, which is currently estimated by the government to cost the economy as much as £63 billion a year in potential GDP ².

Nearly 80% of business leaders said their reliance on computing skills is going to increase massively in the next few years. And for three quarters (74%) polled by BT Group, possessing real-world business-related digital skills is often as good as having a degree when it comes to hiring young people.

“While qualifications are important, they are not the be-all and end-all,” said Danielle Holmes, founder of Black Nova Designs. “Having digital skills is not just a nice-to-have, it’s a mandatory requirement. I’m not talking about becoming an expert graphic designer, I’m talking about basic skills like knowing how to use Microsoft, email management and staying safe online. You could be a mechanic or a hairdresser; in the digital age, you still need a basic tech skill set.”

BT Group’s investment in improving the UK’s digital skills is enabling its partners to offer community training designed to provide essential digital skills training for 10 million school children, families and businesses across the UK.     

22-year-old Callum Emptage graduated in 2020 with a degree in classical civilisation and philosophy, but struggled to find a job in that field. He enrolled on a BT’s Data bootcamp shortly after completing the FastFutures programme and within six months was proficient in several software applications, such as Power BI and Excel, and had learnt the fundamentals of data analysis and programming.

“I always talk about [the programme] because it literally changed my life in half a year. I went from no data skills, to a job in data analysis, and it’s crazy to think about how much things have changed since I clicked on the ad for FastFutures.’

The UK faces an alarming digital skills gap, which is having a profound impact on the country’s ability to keep up with more digitally advanced countries. Many of the digital skills employers need are taught on these courses, which are available to 16-24-year-olds nationwide.

Victoria Johnson, Digital Impact and Sustainability Campaigns and Engagement Director, BT Group, said:

“Young people may feel they don’t have the skills they need to thrive in the world of work, but the jump from being tech-savvy to business-ready isn’t as big as they might think. With such a wide digital skills gap in the UK, loads of firms are seeking people with basic digital skills that can be trained to develop into roles that would traditionally have required a degree.

“At BT Group we’re proud to be supporting young people who want to build upon what they already know about tech to learn business-relevant digital skills. Armed with digital skills, brilliant careers across a huge range of industries await the smart, ambitious, talented people who will build the diverse, inclusive internet of tomorrow.”

ENDS

Notes to editors:

¹ All research unless otherwise stated is from a Census wide poll of 500 business decision makers carried out on behalf of BT Group between 04/08/2023 - 10/08/2023. 
² Policy paper UK Digital Strategy Updated 4/10/2022

The tech and telecommunications firm celebrated the latest phase of construction of its Endeavour building, which will serve as its new South Yorkshire base, alongside representatives from SGI and Oliver Coppard, Mayor of South Yorkshire.

Delegates gathered at the seven-storey, 65,000 sq ft office building to hold a hand-over ceremony, marking the completion of the building’s structure and preparing it for the next phase of its development.

BT Group will now progress the fit-out and kit-out of the building to prepare to welcome staff next year.

Endeavour forms part of BT Group’s Better Workplace Programme, one of the largest workplace improvement and consolidation schemes of its type ever undertaken in the UK.

Sheffield joins other key locations including Belfast, Birmingham, Bristol, Cardiff, and Glasgow in undergoing a workplace transformation under the Programme. It also follows the multi-million-pound refurbishments of BT Group’s contact centres across the UK, including its site in nearby Doncaster.

South Yorkshire’s Mayor Oliver Coppard said: “It’s great to see businesses like BT expanding their base here in South Yorkshire, not only creating a brilliant working environment for their teams but redeveloping a key site in Sheffield City Centre, too.

“The Endeavor building is located within South Yorkshire’s Investment Zone – the first to launch in the UK. It’s a really exciting time for our region as we work to make South Yorkshire the best place to start, scale or relocate businesses, and I’m glad BT are going to remain a part of it.”

Brent Mathews, Property Director at BT Group, said: “This investment demonstrates BT Group’s continued commitment to Sheffield and Yorkshire, which remains central to our long-term plans.

“Our Better Workplace Programme is about modernising the spaces where our colleagues work and giving them buildings and facilities they can be proud of.

“The handover ceremony is a key landmark in our journey towards opening this state-of-the-art building for our colleagues in the region, and we look forward to opening the doors to them next year.”

BT Group will take up all floors in the 65,000 sq ft building, having reached practical completion, and is expected to open its doors to colleagues.

The state-of-the-art Endeavour building is the final phase of the acclaimed Sheffield Digital Campus and will allow colleagues to collaborate and to work more efficiently, helping to boost the service it provides to customers.

Adam Varley, Development Director at SGI, commented: “Our decision to proceed with the speculative development of Endeavour in the midst of the pandemic was driven by our confidence that the building would have a meaningful impact on the wider city, stimulating the creation of new jobs and driving economic growth; a decision that was later rewarded having secured BT Group.

“Throughout the construction of the building, we worked collaboratively with BT Group’s Property team to ensure that it fully aligned with their ambitions to create a truly unique and innovative workplace and we’re delighted to officially welcome them to their new home so that they can start their fit-out process.”

Allison has been President & CEO of Telia Company since early 2020. Telia, headquartered in Sweden, is the market leading digital communications and telecommunications provider to 25 million customers across the Nordic and Baltic region.  She moved into the TMT sector in 2010, initially joining Virgin Media, and was most recently President & CEO of TDC (2018-2020), the largest telecommunications company in Denmark, and President & CEO of Tele2 AB (2015-2018) the largest challenger telecommunications company in Sweden and the Baltics.

Earlier in her career she held a number of financial and operational roles at Procter & Gamble (1990-2010) and qualified as a Chartered Management Accountant in 1990 whilst at Guinness plc.  

Allison has been a Non-Executive Director at BT Group since 2019 and is also a Non-Executive Director and member of the Audit Committee of Brookfield Asset Management Limited.

Adam Crozier, BT Group Chairman said: “The Board is delighted to have appointed Allison as our new Chief Executive. She is a proven leader, with deep sector experience and a history of having transformed businesses. I look forward to supporting her as we drive our long-term strategy to transform BT Group, ensuring it delivers for all our stakeholders.”

Allison Kirkby said: “I’m incredibly honoured to have been appointed as the next Chief Executive of BT Group. BT is such an important company for the UK, and our many customers both in the UK and internationally and is uniquely placed to help everyone benefit from the rapid advances in digitalisation. Our products and services have never been more important to how our customers live and work, and thanks to the significant investment BT is putting into digital infrastructure and in the modernisation of its services, I see us playing an even more important role going forward. Having been a member of the BT Group Board for the past four years, I’m fully supportive of our strategy and am excited about leading it into its next phase of development, as we grow to support customers, shareholders and the UK economy.”

Philip Jansen will continue to serve as Chief Executive until the end of January 2024 at the latest. When Philip steps down, he will hand over to Allison. He will be available to support the handover until the end of March 2024, at which point he intends to retire from executive life. A further announcement will follow to confirm Allison’s start date and the handover date. 

In respect of the transition period, Adam Crozier said: “Philip continues to lead the business very effectively as can be seen in the good progress shown at our most recent financial results. Given Allison is already on the Board, we are confident we will have an orderly leadership transition and handover of responsibilities.”

Remuneration

Allison will be paid in accordance with the Directors’ Remuneration Policy approved by shareholders on 13 July 2023 and in line with the current Chief Executive. Her remuneration will therefore consist of:

A salary of £1,100,000 per annum.

A cash allowance in lieu of pension of 10% of salary and other benefits in line with our Remuneration Policy.

An on target annual bonus of 120% of salary (with a maximum of 200%) subject to performance. Half of the annual bonus paid will be deferred into BT Group shares for a further three years with no additional performance conditions.

A long-term Restricted Share Plan (“RSP”) award of 200% of salary, which vests in three equal tranches three, four and five years after grant. She is required to hold all vested shares until five years after grant. Her first pro rata RSP award will be granted soon after becoming Chief Executive.

Allison will be required to build a shareholding of 500% of salary within five years.

-       Ends    -

Notes to Editors

Allison Kirkby biography

Allison has been President & CEO of Telia Company since early 2020. Telia, headquartered in Sweden, is the market leading digital communications and telecommunications provider to 25 million customers across the Nordic and Baltic region.

She moved into the TMT sector in 2010, initially joining Virgin Media, and was most recently President & CEO of TDC (2018-2020), the largest telecommunications company in Denmark, and President & CEO of Tele2 AB (2015-2018) the largest challenger telecommunications company in Sweden and the Baltics.

Earlier in her career she held a number of financial and operational roles at Procter & Gamble (1990-2010) and qualified as a Chartered Management Accountant in 1990 whilst at Guinness plc.

Allison is also currently a Non-Executive Director and member of the Audit Committee of Brookfield Asset Management Limited.

Philip Jansen remuneration

When he steps down as Chief Executive, Philip’s leaver payment will be in line with the Directors’ Remuneration Policy as approved by shareholders at this year’s AGM. The Company will publish further details in due course on its website, www.bt.com/about

Philip Jansen, Chief Executive, commenting on the results, said    

“We’ve made a strong start to the year, in what remains a very competitive market, with improved customer satisfaction, pro forma revenue growth in all of our business units and pro forma group EBITDA up by 5%. Openreach is now 44% of the way through its full fibre build, and customer demand has continued to grow with a total network take-up rate of 32%. Consumer is seeing solid pro forma growth driven by pricing and mix, as customers choose higher performance connections; and Business grew its order book, driving revenue growth for the combined unit. We continue to drive transformation across the group, and while there remains much to do it’s clear that our strategy is working and BT Group is set up for success.”

Strong start to the year:

• FTTP footprint expanded to 11m premises, 44% completion of 25m target, with a further c.6.2m where initial build is underway; 718k premises passed in the quarter at an average build rate of 55k per week
• Customer demand in Openreach for FTTP increased with Q1 orders up 34% year-on-year and net adds of 383k, bringing network take-up rate to 32%; total FTTP connections grew to 3.5m
• Openreach broadband ARPU grew by 10.2% year-on-year due to price rises and increased volumes of FTTP; Openreach broadband base down 126k in Q1 due to competitor losses combined with a weak broadband market and communications providers ceasing copper lines; we continue to expect the Openreach broadband base to decline by around 400k in FY24
• Consumer broadband ARPU increased 5% year-on-year to £42.0 and Consumer postpaid mobile ARPU increased 9% year-on-year to £19.7, both driven by CPI-linked pricing; churn remains stable for broadband and postpaid mobile at 1.1% and 1.0% respectively
• Retail FTTP base grew year-on-year by 50% to 2.0m of which Consumer 1.9m and Business 0.1m; 5G base 9.2m, up 53% year-on-year
• Business performance reflects positive momentum in SMB but declines in CPS, Global and Wholesale due to higher input costs and legacy high-margin managed contract declines
• Continued focus on customer satisfaction and delivery of excellent value for money with BT Group NPS of 23.7 up 1.8pts year-on-year

Continued pro forma revenue and EBITDA growth:

• Pro forma adjusted¹ revenue £5.2bn, up 4% on Q1 FY23 due to increased fibre-enabled product sales and  price increases in Openreach, increased service revenue in Consumer with 2023 annual contractual price rises being aided by higher FTTP base and higher roaming, and improved equipment trading in Business, offset partially by legacy product declines; reported revenue was up 1%
• Pro forma adjusted¹ EBITDA £2.0bn, up 5% with revenue flow through and cost control more than offsetting cost inflation; Business EBITDA decline due to increased input costs and legacy high-margin managed contract declines
• Reported profit before tax of £536m, up 11% primarily due to EBITDA growth partially offset by specific items
• Reconfirming all FY24 outlook metrics

 
_{¹ See Glossary} 

Glossary

Our commentary focuses on the trading results on an adjusted pro forma basis. Reported revenue and reported profit before tax are the equivalent unadjusted or statutory measures and are reconciled in pages 233 to 235 of the Annual Report 2023.

We are scheduled to announce the second quarter and half year results for FY24 on 2 November 2023.

Forward-looking statements – caution advised

Certain information included in this announcement is forward looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward looking statements. Forward looking statements cover all matters which are not historical facts and include, without limitation, projections relating to results of operations and financial conditions and the Company’s plans and objectives for future operations. Forward looking statements can be identified by the use of forward looking terminology, including terms such as ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, ‘plans’, ‘projects’, ‘goal’, ‘target’, ‘aim’, ‘may’, ‘will’, ‘would’, ‘could’ or ‘should’ or, in each case, their negative or other variations or comparable terminology. Forward looking statements in this announcement are not guarantees of future performance. All forward looking statements in this announcement are based upon information known to the Company on the date of this announcement. Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward looking statements, which speak only at their respective dates. Additionally, forward looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), the Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.
 

 Download PDF - Trading update for the three months to 30 June 2023

BT recently announced plans to roll out its new home phone service, Digital Voice, on a region-by-region basis. Having started in the East Midlands, BT is now moving on to Yorkshire and the Humber. 

An industry-wide shift from analogue to digital landlines will see BT and many other telecoms operators in the UK provide services over a broadband line, similar to work taking place in many other countries around the world. 

This once-in-a-generation upgrade to future-proof the UK’s landlines is essential and will replace technology that is fast becoming obsolete. The landline isn’t going away, and for the most of customers, making the switch simply involves plugging your phone into a broadband router instead of into a wall-mounted phone socket, bringing new benefits such as advanced spam call blocking. 

Customers in Yorkshire and the Humber will be contacted at least four weeks in advance before making the switch, to ensure they are ready to move to Digital Voice. For almost all customers, Digital Voice will have no impact on how they use their home phone. They’ll still have the same service, and price plan and bills will stay the same. In addition, more than 99% of phone handsets work with Digital Voice and for those that won’t, BT has a range of handsets that customers can order. 

Vicky Hicks, Senior Engagement Manager at BT, said: “BT customers in Yorkshire and the Humber will benefit from a tried and tested service, with around two million BT customers already having made the switch and benefitting from the many advantages of digital home phones from advanced scam call filtering capabilities to crystal-clear call audio. 

“For almost everyone, moving to Digital Voice will be a simple and free transition with no home installation work required. If you feel you need additional support with the transition or you think you are vulnerable, please do tell us. We will be with you every step of the way.” 

BT won’t be proactively switching anyone who falls under the below criteria, where it has this information available: 

• Customers with a healthcare pendant 
• Customers who are over 70 
• Customers who only use landlines 
• Customers with no mobile signal 
• Customers who have disclosed any additional needs 

Engaging with the Yorkshire and the Humber community 

BT’s regional approach will be supported by general awareness communications, and advertising campaigns, delivered across local and regional media to explain to customers the simple steps required to make the move to Digital Voice. 

Upcoming engagement activities in Yorkshire and the Humber include: 

Townhalls: BT will be present in townhalls across the region in August to address customer questions on the ground. Customers will be able to speak to BT advisors, test Digital Voice products as well as take part in digital skills training. The first two townhalls to be confirmed are as follows: 

• 2^nd August, 10:00 – 15:00: Leeds, Headingley Enterprise and Arts Centre West Yorkshire, LS6 3HN  
• 22^nd August, 10:00 – 15:00: Sheffield St Marys’ Church & Community Centre, Bramall Lane, Sheffield, S2 4QZ 

Pop-up events: BT will be hosting pop-up stands in garden centres and libraries so customers can have one-to-one conversations with BT staff. The first locations that have been confirmed are: 

• 4^th August, 10:00 – 14:00: Skipton Library, High St, Skipton, BD23 1JX 
• 9^th August, 10:00 – 14:00: Ripon Library, Ripon The Arcade, Ripon, HG4 1AG     
• 16^th August, 10:00 – 14:00: Driffield Library, Driffield Cross Hill, Driffield, YO25 6RQ 
• 17^th August, 10:00 – 14:00: Pocklington Library, 23 Railway St, Pocklington, York, YO42 2QU  
• 23^rd August, 10:00 – 14:00: Malton Library, St Michael St, Malton, YO17 7LJ 
• 31^st August, 10:00 – 14:00: The Buttercross Brigg, Brigg, DN20 8ER 

Demonstration vehicle: BT will tour 12 towns and cities over the course of August to ensure customers across Yorkshire and the Humber can speak to BT staff about the switch and try out the new technology for themselves. Confirmed dates and locations: 

• 2^nd  and 3^rd August: Grimsby, Morrisons, DN37 7SQ 
• 4^th and 5^th August: Goole, BGC, HU15 2UJ 
• 6^th and 7^th August: Bridlington, Morrisons, YO16 4SY 
• 8^th  and 9th August: Doncaster - Lakeside, DN4 5JH
• 11^th and 12^th August: Rotherham, Morrisons Catcliffe, S60 5TR 
• 13^th and 14^th August: Barnsley, Wombwell Retail Park, S70 3NS 
• 15^th and 16^th August: Wakefield, Morrison, WF2 9BY  
• 17th and 18th August: Huddersfield Town Centre Macaulay Street HD1 2JY
• 19^th and 20^th August: Halifax, Morrisons, Keighley Road, HX2 8HY 
• 21^st, 22^nd and 23^rd August: Bradford, City Park, BD1 1HY 
• 24^th, 25^th and 26^th August: Harrogate, Crimple, HG3 1EW 
• 28^th and 29^th August: York - Vangade Retail Park YO32 9AE

Full information of dates and which towns and cities will be hosting BT events will be available on the Digital Voice website: www.bt.com/digital-voice. 

In preparation for this, the Nominations Committee of the Board has been conducting a formal succession process. 

Adam Crozier, BT Group Chairman said: “Philip has done an excellent job in his time at BT and the Board is fully supportive of our long-term strategy which he and his team are pursuing. Whilst we are still in the early years of that transformation we are on track to deliver. 

The succession process to replace Philip is something that the Board was well prepared for. All appropriate candidates are being considered and we expect to be able to update the market on progress over the course of the summer. In the meantime, it is business as usual, and we are focused on executing our plans and delivering for all our stakeholders.” 

Philip Jansen, Group Chief Executive said: “We’ve made a lot of progress over the last four and half years and I’m proud of what we’ve achieved to date. We’re investing heavily in both BT’s and the UK’s future. We’re building like fury, have now passed over 11m homes with fibre, have got 5G service to 68% of the country and our customer service is much improved. This is creating a much stronger BT Group which is starting to drive growth for both investors and the UK. But there’s a lot more to do and I am fully committed to driving the business forward until I hand over to my successor.”

• The formation of Business on 1 April 2023, from the combination of Enterprise and Global 
• Refined allocation of shared central costs between BT’s Customer Facing Units (CFUs) 
• Refreshed financial and operational metrics for BT’s CFUs 

Following the formation of Business, BT has refreshed its KPI disclosures to present this business on a pro forma basis. In light of this, and the formation of Digital and Networks, BT has also adjusted the methodologies used to allocate shared fixed costs across its CFUs to more closely align them to their actual consumption. Finally, BT has also refreshed its CFU financial and operational KPIs to better align them with the internal metrics used to manage each unit. 

Refreshed KPIs, formation of BT Business, and adjustments to central cost allocations 

1. Business was formed from the combination of the former Enterprise and Global units and will commence reporting from Q1 FY24. 
2. BT has adjusted its methodologies used to allocate shared Network, Digital and support function costs across its CFUs, reported within operating costs and capex. The changes more closely align the recharges received by each CFU to their actual consumption. These changes impact CFU financials only and have no impact on the reported Group financials. 
3. BT has also refreshed the CFU financial and operational metrics used to explain company performance from FY24. This will improve visibility of the drivers of BT’s performance, whilst simplifying and better aligning the company’s external KPIs to the internal metrics used to manage the business. 

These changes have no impact on BT’s financial outlook which remains unchanged. 

Pro forma financial and operational KPIs, reflecting 1, 2 and 3 above for FY22 and FY23 are available on our website. Historical pro forma KPIs are unaudited and provide an indicative history of BT’s performance. 

Accompanying documents 

1. Pro forma KPIs (Document A): BT’s pro forma KPIs for FY22 and FY23, reflecting the formation of Business, the impact of adjustments to central cost allocations, and refreshed metrics for BT’s CFUs 
2. Pro forma KPIs – Supporting information (Document B): A bridging document between BT’s previously reported KPIs and BT’s pro forma KPIs (Document A)

Delegates gathered at the top of the five-storey site to commemorate the completion of the building’s rooftop.

The new multi-million pound contact centre, which once complete will be home to around 1,000 colleagues, forms part of Dundee’s £1bn regeneration area, and is located at West Marketgait, in the heart of the city centre, close to the waterfront.

The exterior of the building is due to be completed in September this year with the interior fit out of the building starting shortly thereafter. It is expected that it will officially open in 2024 and will provide a brand new working space for Dundee colleagues.

Once complete, the new Dundee office will be equipped with the latest state-of-the-art technology, feature a range of communal and collaborative spaces and areas for colleagues to socialise in as well as a games area and an in-house coffee shop.

The building will also be one of the most sustainable offices in the city with features like EV chargers and a brown roof that will self-vegetate from windblown and bird seed dispersal ensuring the buildings’ impact on the environment will be minimal. The office will also help to encourage active travel, supporting colleagues who chose to cycle to work with showers and clothes drying facilities.

BT Group’s commitment to Dundee as a long-term location was announced in 2020 as part of the company’s ‘Better Workplace Programme’ – the largest workplace improvement and consolidation scheme of its type ever undertaken in the UK. The five-year programme, which will be complete next year, is seeing the company rationalise hundreds of its offices across the UK and establish an estate of modern workspaces. The group is also undertaking a multi-million pound refurbishment of its flagship Glasgow office, situated on the Clydeside.

The investment will help transform the way BT Group works, create efficiencies and enable it to better serve its customers in Scotland and across the UK. Teams based in Dundee include those providing customer service support to consumer and small businesses.

Councillor John Alexander, Leader of Dundee City Council, said: “This is a huge investment and vote of confidence in our city and BT's workforce here. It's also another anchor tenant within our city centre, supporting the broader economy.

“I have been keenly following the progress of this building as it rises from what for so long was an undeveloped plot of land. The work that has been done in such a relatively short time has been great and it is real physical evidence of BT’s endorsement of Dundee as a good place to do business and recruit its present and future workforce.”

Brent Mathews, BT Group Property Director, added: “This milestone marks a key step forward in our journey of bringing our colleagues together in the heart of Dundee, by creating a state-of-the-art building in the city centre which our colleagues can be proud of.

“This investment highlights a significant and long-term commitment to Dundee as part of our Better Workplace Programme. We want to create an inspiring environment where our colleagues here will be able to deliver the best they can for our customers as we continue the vitally important work of keeping the country connected.”

Michael Smart, Director of Crucible Developments, said: “It’s great to bring together our partners in the development from LXi REIT, Dundee Council, BT and Ogilvie Construction. Good progress is being made with this market leading, excellent office, with handover to BT on target for late summer.”

BT Group’s current office in Dundee, which is based on Ward Road, is home to around 1,000 colleagues and it first opened in 1976. BT Group employs around 7,000 colleagues across Scotland, ensuring homes, businesses, schools, GPs and hospitals, from Shetland to Stranraer, stay connected wherever they are and whatever the weather.

ends

Crucible Developments
Crucible Developments is a property development company based in Ayr, Scotland, focusing on commercial property developments projects throughout Scotland and the North of England. Further information can be found at www.cruciblealbagroup.com

About Ogilvie Construction
Ogilvie Construction is part of the Ogilvie Group, one of Scotland’s most consistently successful family-owned businesses.  The company is over 65 years old and employs more than 600 people across its various business operations in the UK.

About LXI REIT
LXI REIT plc invests in commercial property assets predominantly in the UK, let, or pre-let, on long (typically 20 to 30 years to expiry or first break), inflation-linked leases to a wide range of strong tenant covenants across a diverse range of robust property sectors. 

After four years in the role, Otto Thoresen, BT Pension Scheme Chair of Trustees, has notified BT Group and the BTPS of his desire to step down from his position following the 2023 BTPS triennial valuation negotiations to allow more time to enjoy his retirement.

Following an extensive search, BT Group has appointed Jill Mackenzie as an independent employer-nominated Trustee Director from 15 May 2023 with a view to her succeeding Otto as Chair in due course.

Jill replaces Keith Nichols, who has stepped down from the Board after six years having reached the end of his fixed term during which he made a significant contribution. 

Jill has experience across a number of executive and non-executive roles and is a seasoned trustee board chair. She served as a board member and senior independent director with NEST (National Employment Savings Trust) for seven years between 2015 and 2022 and she currently sits on the board of the Fidelity Master Trust. Jill brings extensive experience of defined benefit pension schemes as both employer and trustee.

Otto stepped into the Chair’s role in 2019 and has played a key role in BTPS’s transformation. Together with the Brightwell team and the trustee board, he oversaw the successful conclusion of the 2020 BTPS triennial valuation, which resulted in a plan to fully fund the Scheme by 2030, the establishment of a 2035 net zero goal and the implementation of a number of transformation projects within member services which has significantly improved member satisfaction across all measures. 

Simon Lowth, Chief Financial Officer of BT Group, and Director of the BTPS Trustee, said: “We are very grateful for the leadership that Otto has brought as Chair of the BTPS Trustee Board in a time of huge change to the Scheme and for Keith’s contribution over many years.

“I am pleased to welcome Jill to the Trustee Board, she brings extensive pension industry experience and is well placed to succeed Otto as Chair when he steps down at the conclusion of the 2023 triennial valuation.”

Commenting on her appointment, Jill Mackenzie said: “As one of the largest corporate pension schemes in the UK, BTPS has an important role to play for both its members and wider society. I am delighted to be taking on this role and look forward to working with the Trustee Board and the whole team.”

ENDS

Wednesday 26^th April 2023; London, UK: BT Group has announced a new partnership with the charity AbilityNet to help improve the digital skills of 4,000 older and digitally excluded people across the UK in 2023.

The partnership will run a UK-wide ‘Senior Skills Programme’ that will deliver more than 1,000 group and one-to-one training sessions to those who need it most in regions across the UK.

Sessions will be available in Glasgow, Edinburgh, Birmingham, Manchester and London. The locations were chosen based on a growing demand for tech support among older people aged 65+ in these areas.

BT Group’s own research** shows that two thirds (65%) of older people think that you’re never too old to learn new skills, with almost half (49%) open to learning tech skills specifically.

Basic digital skills have now become an almost essential requirement for day-to-day life. Older people who are without digital skills risk losing access to key services like banking, shopping and health services, as well as communications platforms that keep people connected.

Victoria Johnson, Social Impact Director at BT Group, said: “Digital inclusion is about making sure everyone has access to the benefits that technology offers.  This new partnership with AbilityNet, and the Senior Skills programme we are creating together, seeks to dispel the mystery of tech, build confidence and awareness of misinformation, and help make a digital native out of everyone in the UK, whatever their age.”

“BT Group is committed to supporting the older generation as they adapt to using digital tools and technology. The partnership with AbiltyNet will help reach our goal of an inclusive digital future for all.”

Sarah Brain, Free Services Manager at AbilityNet, said: “Our vision at AbilityNet is to create a digital world which is accessible to everyone We’ve been helping older people and disabled people of any age with their technology for 25 years.

“The partnership with BT Group will help meet our goal to support the digitally excluded in building their confidence online and diversifying their skill set, helping people across the UK to live more independent and fulfilled lives.”

The Senior Skills programme will also work to get older and digitally excluded people online to understand and use basic services and aiding them in the switch from analogue to digital home phones.

The training will be available in person and through online resources with the aim of helping participants become more independent and able to manage day-to-day digital tasks.

40 volunteers from BT Group will help deliver the programme​. The partnership will also encourage people struggling in terms of digital skills to call a free helpline.

Notes

Data

* Centre for Ageing Better: https://ageing-better.org.uk/communities-state-ageing-2022

** Research carried out by OnePoll in October 2022 of 1500 over 60s in the UK

BT Group today reaffirmed its commitment to Belfast, and Northern Ireland, as it officially reopened its Riverside Tower building at Lanyon Place, in the heart of the city, following a multi-million pound refurbishment.

As a key location in the company’s future plans, the significant refurbishment has created a fantastic, modern workplace, which will now be home to around 2,000 colleagues from BT Group, which includes EE, BT Business and Openreach.

Belfast was named as a significant long-term location for BT Group in 2021 as part of the company’s ‘Better Workplace Programme’ – the largest workplace improvement and consolidation scheme of its type ever undertaken in the UK. The five-year programme, which will be complete next year, is seeing BT rationalise hundreds of its offices across the UK and establish an estate of modern workspaces.

The new building boasts state of the art technology and flexible work and collaboration areas. These shared workplaces are central to the company’s future, providing environments for colleagues to come together to collaborate, learn, develop and share their experiences. BT Group believes that inspiring office environments, combined with a flexible approach to home working, will play a vital role in its future and in the future local economies of its key hub locations.

Commenting on the official opening, The Secretary of State for Northern Ireland, Rt Hon Chris Heaton-Harris MP, said: "This is great news, with BT Group’s significant investment in its Belfast base showing just what an attractive place for business Northern Ireland is.

"BT's fantastic new office will provide a boost for the local economy, creating jobs and increasing footfall in the city centre, with staff spoilt for choice when it comes to options for lunch."

Brent Mathews, BT Group’s Property & Facilities Services director, added: “We’re really excited for colleagues moving into Riverside Tower following our multi-million pound investment in our Belfast flagship office. We want to bring our people together in an impressive and modern environment, transforming the way our teams work. This refurbishment represents a change in BT Group, one that is better for colleagues, customers and shareholders: easier to work with and for.

“We really want our colleagues to be proud of where they work and to feel part of something brilliant, inspiring them to also continue to do the best that they can for our customers. 

“This investment also marks a significant commitment in Belfast. As a major employer in the city, our presence will support local economic growth and employment opportunities. We recently announced plans to recruit 100 people into digital roles, such as Artificial Intelligence, software engineering and product management, as well as graduates and apprentice roles.” 

The Lord Mayor of Belfast, Councillor Christina Black, added: “It is fantastic to see BT Group complete this multi-million pound refurbishment and that employees can now move into a new modern building in the heart of the city.

“This really is a big vote of confidence that a company the size of BT Group is continuing to invest in Belfast and is supporting its economic growth.”

BT Group plays an important role in Northern Ireland and is responsible for directly generating £1 in every £110 produced here, according to an independent report. BT Group employs approximately 7,300 people both directly and indirectly here.**

The business is making record investments in next generation networks, such as full-fibre broadband via Openreach and 5G via its mobile network EE. This once in a generation upgrade to Northern Ireland's digital infrastructure will support the region's economic growth ambitions and ensure Northern Ireland's businesses and public sector organisations are able to take full advantage of the latest technologies and digital possibilities.

Notes 

BT Group’s new state-of-the-art hub in Belfast is part of the company’s Better Workplace Programme, one of the largest workplace improvement schemes of its type ever undertaken in the UK. The five-year programme will see the company shift from having around 300 locations in the UK to around 30, with a focus on creating new, modern workspaces. The company has already opened new flagship offices in London, Birmingham and Bristol, and a new regional hub is opening soon in Manchester.