BT

BT Change From Per Second To Per Minute Billing
As of today BT is reshuffling its phone pricing structure. In a typical move of a power-crazed ex-monopoly, it’s giving with one hand and taking away with another.
The ability to get going on this was given by Ofcom when they lifted restrictions on BT’s UK landline pricing structure.
The ‘giving’
BT hasn’t had the take-up with its bundled packages that it had hoped. From today, subscribers of its Option 2 & 3 package will receive around a third price cut. The included-evening/weekend calls to landline packages will move to £3.95 & the all landline calls to £9.95. This is the packages that they’re trumpeting – shame that most people won’t benefit from it isn’t it?
The other part BT is drawing attention to, is the reduction in price of calls to 0870 and 0845 numbers – the sort of numbers most people have been forced to call to speak to their banks. Oh … and they tell us that they’ve reduced the price of calls to mobile phones.
Almost to add insult to injury, BT is offering all of their 16m subscribes 25p off their monthly line rental at the end of the year- TWENTY FIVE PENCE! We’ve just wasted that typing this. Of course, much to our distress, most broadband services (supplied by BT Wholesale) need to pay the line rental. Why should we? and how much longer can this be allowed to continue? Come on Ofcom.
The ‘taking’
The majority of BT’s 16m customers pay per call on the Option 1 scheme. Sadly for them, things won’t be such a bargain. BT is changing their standard charging unit from per second to per minute – not something that we’ve seen since the wild-west days of early mobile phone companies, where the cowboy operators tried to extract the maximum amount of money from the ~~suckers~~ customers.
We think it more than sneaky that BT have given people Call Minder, their free phone answering service, then charge people a fixed fee (3p) or ‘setting up’ the call, then charging whole minutes. When many people get an answer phone, they hang-up because they don’t want to leave a message, or to try to call their mobile – in the meantime BT will collect the setup fee PLUS a whole minute charge, for a couple of seconds.
As to how much the minute will be – we don’t know. We’ve looked, really we have, pretty hard too – we’ve even tried to use their price list search – but to no avail. Isn’t it a bit of a give away that if you need a search engine for your price list, you’re possibly going to be confusing the customer.
Interestingly, for the first time, BT have listed Skype on their pricing structure on the press release. Welcome to the future BT.
If you’ve got a couple of hours to spare, and fancy trying to extract pricing information, you can have a look at the BT Together site.
1 August, 2006
BT Tops UK Broadband Performance Table
A new report has awarded the honours to BT, Virgin, Demon, AOL and Orange as being the UK’s top five consumer ADSL broadband services throughout the second quarter of 2006.
The new study by Customer Experience Management (CEM) firm Epitiro placed BT as the top dog of their overall ADSL index.
BT, along with Virgin and AOL, were the fastest services to actually connect to the Internet, while BT, Pipex and Orange were found to be up to four times faster than the industry average at delivering email.
Gavin Johns, Managing Director of Epitiro said, “Our consumer ADSL testing found that in terms of Internet performance, BT topped the overall rankings for the period April to June 2006. BT was also found to provide the fastest service as a percentage of its theoretical maximum.”
Solutions galore
Epitiro – a company very partial to using the word ‘solution’ in every other sentence – explained that they used their (ahem) “customer experience monitoring and competitor benchmarking solution, ISP-I” to monitor the ADSL broadband services by periodically connecting from ten key geographic locations around the UK from April to June 2006.
This information was compiled into Epitiro’s Consumer ADSL Internet Performance Index (IPI), which awarded a performance score of 1 to the best performer in each test throughout the period.
1 BT 2.78
2 Virgin 4.79
3 DEMON 5
4 AOL 5.22
5 Orange 5.23
With the ADSL industry’s average IPI score for Q2 2006 being 4.72, this shows that BT really are ahead of the game right now.
Epitiro
17 July, 2006
Barclays Drop BT Media And Broadcast Deal
The planned buy out of the satellite interests of BT Media and Broadcast, the division within UK giant, British Telecom, that operates ‘business to business’ broadcasting industry interests, has fallen at the final fence.
After long and protracted negotiations that we here at Digital Lifestyles have been covering for the last six months, we can reveal here that the deal will not go through. Rumours have been rife for the last week or so after Barclays Private Equity (BPE) failed to get the necessary agreements to cut suppliers costs.
BT like other large telco’s is finding itself with more Satellite capacity than it can usefully manage, remains committed to a sale and is now considering the long term future of some of its’ other major earth stations.
The failure of the negotiations that valued the sale at around £80m, is expected to enable key players from both sides to ‘spend more time with their families’ and staff who had elected to join the new company that Barclays were putting together, face a prolonged period of uncertainty while “reserve bidders” are consulted, including a further interested private equity outfit.
14 July, 2006
BT Home Hub Examined
To date, most ADSL equipment that BT has put out has been pretty …. functional … or put another way, ugly. Their ethernet routers have been transposed from office equipment, and their USB kit, the Frog as it was known … well don’t get us started on that*.
This has all changed with their latest packaging of broadband. Released alongside this, the newly-announced BT WiFi Home Hub has been designed to seduce people into pulling their router out from it previous position in the study or under the stairs, and putting it in to their living space.
Why would they care about that? Well it’s important for the success of products like BT Vision, their autumn-release IPTV service, as the connection between the Home Hub and the BT Vision box currently has to be wired ethernet. Given most people don’t have their house cabled for ethernet, the Home Hub has to be located close to the main TV in the house, normally in the lounge. It also doesn’t hurt to have their new wireless-DECT VoIP phone handsets sitting in the main room in the house either.
It’s a looker
BT have clearly had the industrial designers on the case and what they’ve turned out is a bit of a looker.
Being white, you can’t but fail to be reminded of Apple (being that they own the colour white). It’s like a cross between a small, white, upstanding PS2 and an iPod, but lacking the curves of the iPod.
The BT VoIP handset, or BT Broadband Talk handset as they call it (sssh, don’t mentioned VoIP), sits in an integrated docking unit that is slots in the front of the base of the Home Hub.
What can you connect to it?
Apart from the 802.11G/B wireless connectivity, there’s six physical connectors tucked away at the back of the Home Hub.
There’s the connector that runs between the phone line and the box, a slot for you POTS phone, two ethernet connectors (one of these will be used for BT Vision) and two USB connectors.
One of these USB ports is intended for computers that don’t have ethernet ports on them (are there any of these still in circulation?) and the other is for an as-yet unannounced use.
One trick I feel they’ve missed is using the Hub as a print server, but discussing this with BT’s, they suggest that this is something that could be introduced later, via a software update.
Disco lights may drive you mad
The only issue we raised after spending a brief time with it was the usage indicator lights that sit at the top of the unit, which flicker whenever data passes through the box. Sadly, as yet, these can’t be turned off.
We’d imagine that while having these beauties flickering away may be a novelty initially, but long term, people are going to find it _really_ annoying, as they catch them out of the corner of their eye. Expect either the addition of some masking tape over them or a software update giving the option to kill them.
Over broadband software updates
Keeping equipment up to date is a expensive and risky business, especially if you need to get the customer involved.
Like their video phone handsets, the Home Hub can be updated remotely by BT over the broadband connection. This gives them a chance to provide new features in the future, or to fix an problems that they might find, without having to bother the subscriber.
Do you need a Home Hub?
If you want to carry on using the Internet as you have previously, then the short answer is no, _but_ if you want to use any of the new BT services like BT Vision or BT Homesafe, their home security system (more on this soon), then yes.
For BT Vision to work, the STB that comes with it has to be able to control the flow of data over the broadband connection, because frankly, getting TV to run over a 2Mb DSL connection is asking a lot of it. If little Johnny is sitting in the bedroom downloading goodness knows what, he’s going to have to have his connection throttled, which Dad is watching the Football on Saturday night.
* Thank the gods of USB that BT have finally dumped the USB-connected Frog that used to ship in previous version of their broadband offering. We found this an odious move purposely designed to limit the number of computers that connect to one. In our book, this was detrimental to the wider adoption of broadband in the UK.
23 June, 2006
BT Include OpenZone WiFi Minutes with Broadband Package Shakeup
BT have released a shake up of their home broadband offering.
As well as reducing the number of options available, they’re also boosting the packages to try and both get people to switch to them, as well as attempting to induce their current subscribers not to switch away.
Mirroring their phone call plans, BT have gone for the Option 1, 2 & 3.
250 minutes of BT OpenZone WiFi
Most of the offering isn’t that different – OK, they’re bundling Norton Antivirus and firewall – the big innovation is the inclusion of 250 minutes of BT OpenZone WiFi.
BT have done a clever thing here in providing WiFi minutes. People will come to realise that they can use WiFi when out and about … near a BT roaming point only of course.
This is of course only averaging 8 minutes a day – and we all know how quickly time on the Internet can disappear.
Once they get used to that behaviour, people will start to run out of the 250 minutes that are available over the month – and start to pay BT for extra minutes.
This is a very clear indication that the convergence of network access is now well underway.
Free VoIP calls to UK Landlines
All of the packages provide free evening and weekend calls to UK landline, and until Jan 07, free video calls. International calls are not discounted – at all, which we thought a bit shocking.
This is not just calls using the PC softphone, but using the new Hi Def phone handset. We’ll cover this in more detail soon.
As well as the Hi Def phones and BT softphone, calls can be made to other BT VoIP handsets, like the now available BT Broadband Talk Videophone 1000 and soon to be available 1000 video phones.
We specifically asked about linking to other VoIP services. With no shock, we heard that this wasn’t going to be supported ‘at launch’, and we suspect ever. Locking people in to the BT handsets will be a way to attempt to increase their subscribers, with BT subscribers encouraging their family and friends into having a compatible, ie BT handset.
Equipment
In an effort to try and get you to step up to the highest subscription, BT are using an increasing amount of equipment to induce you to be tempted every increasing monthly fees. They’re leveraging their ability to buy huge amounts of equipment and the discounts that brings to them.
The entry-level Option 1 customers will be provided, free of charge, with a BT Wired router; Option 2 brings the white BT Home Hub; Option 3 includes the Home Hub and VoIP/DECT handset, that they label the Hi-Def handset.
If you persist in opting for Option 1, you’re able to purchase the Home Hub at the additional cost of £30 – £25 if done online.
Costs
There’s a promotional offer on each of the packages of a reduced cost for the first six months of subscription.
Option 1 – £9.95 for six months, then £17.99/month
Option 2 – £14.99, then £22.99/month
Option 3 – £22.99, then £26.99/month
Learning a trick or two from the mobile business, contract length for the entry Option 1 is 18 months. The others are a more expected 12. Do you get the impression that they really don’t want you to go for the Option 1?
Options 2 & 3 are pretty much the same, except for the amount of data that can be downloaded by the subscriber – option 2 give 6Gb usage per month, Option 3 a more generous 40Gb. It’s unclear if BT Vision is used if this will be included in the usage.
23 June, 2006
Bright Star: BT Media and Broadcast Sale Close
As you may recall, we first reported the sale of BT’s Media and Broadcast division (or BTM&B as it’s known internally) and its TV satellite interests at the turn of the year. Since then detailed negotiations have been ongoing, with around 200 staff worldwide expected to be moving away from the comfy world of BT, to the more exposed waters of a private equity-driven outfit. We’ve heard that it’s expected to be known as Bright Star.
The new enterprise centred around Satellite Occasional use and satellite TV multiplexs will be headed up by Mark Smith who was the boss of what was, a couple of years back, BT Broadcast Services. Joining Mark there will be some new hires alongside those former BT folks, described as ‘in-scope’ who we understand have decided to take a sweetener of around £4,500 to transfer their skills and experience to the fledgling outfit.
It is expected that initially BT’s Media and Broadcast customers will notice little difference as BT continue to offer a wrap that includes satellite expertise. Beyond that, Bright Star will be looking at other opportunities not limited to BT’s customers.
The new business will include satellite earth stations in the UK, France and the USA but it is as yet unclear where the operation will be headquartered. Currently BT’s M&B operates out of the iconic BT Tower.
The transfer and negotiations around the unit are likely to have given BT some food for thought as to how they can manage the disposal of business units they do not see as key, or that are giving rates of return below the main business’s targets.
After such protracted negotiations it will be interesting to see if a more bottom line-focused business emerges and if BT attempts similar transfers around the peripheries of its empire in the future.
22 June, 2006
BT To Create 12 Wireless Cities In UK
BT has today announced its plans to set up wide-area Wi-Fi networks in 12 cities, giving perambulating folks access to high-speed Internet and telecoms services.
The first phase will see BT installing Wi-Fi hotspots covering large areas in Leeds, Birmingham, Cardiff, Edinburgh, Liverpool and London’s Westminster area, with services scheduled to be running in all 12 metropolitan areas by February next year.
“We have been thrilled with the overwhelming response of local authorities and businesses wanting to be part of this wireless revolution,” enthused BT’s chief of converged services, Steve Andrews.
“This first phase of 12 cities is just the start. We are already negotiating with many other cities,” he continued.
Lovely, lovely Cardiff was the city chosen for the first roll out of the Wireless City scheme, with BT Openzone hotspots being installed in many locations in the city centre.
Meanwhile, the bustling heart of Westminster has already seen a dedicated high-bandwidth wireless network being installed, now in the process of being extended.
Sadly, the Wi-Fi service won’t be free to Joe Public, but BT says it intends to develop a range of information and public services for the local authorities and split costs and revenues for such services.
BT is also looking to use the service to promote a Wi-Fi version of its BT Fusion mobile phone services which will be launched later this year.
The Fusion phone currently uses Bluetooth but the updated version will allow consumers to switch from a mobile network to a cheaper Internet network when the phone comes within range of a Wi-Fi hotspot.
BT Fusion
17 May, 2006
NTL, BT Nowhere In Premier League Football Bids
There had been some excitement, well amongst UK media analysts at least, that BSkyB might loose its dominance of the control of UK football’s Premier League.
Today we learned who the winners were.
Following pressure from the European Union (EU), who had stated that all matches couldn’t be controlled by the same broadcaster, the games for this round of bidding were split into six packages of 23 games each. The EU threatened legal action against the Premier League if their will wasn’t complied with. Not surprisingly, they did.
Clearly BSkyB bid. Having exclusive right to the football was one of the cornerstones that built the success of Sky in the UK.
Other bidders included NTL, fronted by the bearded-wonder – Richard Branson, who had been acting the big I AM, threatening to out bid Sky for the available six packages. BT made some noises too.
Finally the other company, Irish broadcaster Setanta, had thrown its hat into the ring, originally saying they were going to bid for two of the packages. Those not in the broadcast world wouldn’t necessarily know who Setanta are, but most people will know of their 40% owners, Benchmark Capital.
The results of the bidding? Sky got four of them and Setanta the other two. With only six on offer, the other pretenders got nothing.
For the UK Football Association, it’s a giant payday with the total amount paid rising from £1Bn three years ago, to £1.7Bn covering the next three years. Not bad work if you can get it. Expect many more overpaid footballers and lurid stories in the tabloids. The Cristal champagne will be flowing tonight.
Premier League
5 May, 2006
Carphone Warehouse To Offer Free Broadband?
Carphone Warehouse are going to stir up a hornet’s nest in the telecoms industry if they go ahead with rumoured plans to introduce a free broadband package in the UK.
According to the Sunday Times, the company is expected to offer the public “free” broadband as part of their Talk Talk landline package.
Backed by a huge advertising budget, the promotion is seen as part of Carphone Warehouse’s strategy to elevate their Talk Talk brand into the leading consumer alternative to BT Group.
Carphone Warehouse’s current tally of 75,000 broadband customers puts them miles behind big boys BT Retail and NTL, who boast a mighty 2.3m and 2.8m customers respectively.
Not us, Guv.
At the moment, the company are denying everything about the new free service, although an announcement is expected on Tuesday.
Some industry experts believe that Carphone Warehouse are looking to repeat the soaraway success of fabled freebie ISP Freeserve, who came out of nowhere to overtake BT in the late 90s.
Up until now, Carphone Warehouse have been hampered by having to resell BT’s wholesale broadband product, but a hefty £60m investment will see the company having its own broadband gear in up to 1,000 BT exchanges – potentially reaching 70% of the population.
PR spin-mesisters at Carphone are thought to have christened their broadband campaign “Independence Day”, based on a feeble pun that it will give customers independence from BT.
Some are suggesting that the tag has greater significance, insisting that it reflects the proposed launch date for the new broadband deals – July 4, America’s Independence Day.
Talk Talk
Carphone Warehouse
10 April, 2006
Two Million Brits Use VoIP Services
New research reveals that around two million Brits have used VoIP packages to place calls over the Internet in the last 12 months, with the figure expected to double by this time next year.
Analysts at Continental Research conducted a poll of 3,000 UK adults using VoIP and discovered that Skype was the preferred tool of choice for 48 per cent of users.
In second place was Microsoft’s MSN Messenger boasting a fifth of all calls, with Vonage and BT trailing miles behind at 6 per cent each and Wanadoo barely visible on the horizon at just two per cent.
Punters seem happy with the service, with most saying that they will increase or maintain usage over the next year, with only 1 per cent planning on using VoIP less.
Sound quality was the most common complaint with 29 per cent citing dissatisfaction with what’s reaching their lug’oles.
Mulling on the findings, James Myring, the associate director of Continental Research, told The Independent newspaper that by being early to market, Skype has enjoyed a big “first mover” advantage.
He noted that BT has huge potential to roll out VoIP to customers on a large scale, but warned that, “it will be concerned about losing market share from its fixed line business. For BT, it might be a case of compete or lose.”
Protecting the VoIP future
Elsewhere, the University of North Texas is leading a project to look at ways of protecting VoIP services from voice spam and network attacks like DoS, as well as looking into issues concerning network quality and emergency services access.
The $600,000 (£344,000) investment looks to develop a secure, geographically distributed test bed to seek out VoIP vulnerabilities before the “damage is done.”
Unveiled by the National Science Foundation, the three year security audit will also be used to sniff out potential security holes arising from running VoIP over conventional phone networks.
With VoIP being aggressively marketed, one recent study estimated that some 24 million US households will be hooked up to VoIP services by 2008.
10 April, 2006