Scoping the market for business communications. Tanuja Randery President BTGS Strategy

Transcription

1 Scoping the market for business communications Tanuja Randery President BTGS Strategy

2 British Telecommunications plc 2

3

4 Business connectivity needs are truly pan European

5 Flexible connectivity solutions responding to clients needs wherever they need to go City Fibre Networks VSAT & Wireless Internet based access Optical Reach In Network to Network Interface (NNI) Ethernet 3 rd party network xdsl Leased Line Access

6 Multiple quality tiers and suppliers Site profiles Premium full service Plus medium COS capable Standard lower no COS R&D Data centre Cloud Manufacturing Fibre Ethernet GigE SONET/SDH CFN Campus/ HQ Manufacturing Distribution Branch office Leased line Ethernet DSL Premium NNI VSAT DSL Plus NNI Low contention Limited E2E control DSL Standard HVPN High contention No E2E control Retail Branch office Home office Back-up Leased line Ethernet Private (DSL) DSL Private Cable Wireless HVPN CPA/ public VPN Cable Wireless

7 Access focusing on the right demarcation between types of accesses Focus on performance Focus on price Dedicated (private) Shared (private shared) Ethernet copper VDSL/ GPON (Super fast) ADSL 2+ Ethernet fibre ADSL Private circuits Bandwidth increase Focus on reach Wireless Microwave Wi-Fi 3G/ 4G/ LTE Satellite

8 The analysts are telling us Selection criteria for Network Service Providers When selecting a network service provider, which are the most important factors in making a decision? Pricing Quality of service and support Geographical coverage Technology innovation Contract flexibility Vertical or industry expertise Cloud service strategy Ability to provide mobile and fixed A broad service portfolio (incl. IT services) Pricing and coverage are fundamental requirements for our customers (% of respondents) Source: WE Enterprise Communication Survey 2014 IDC

9 Relationship and trends between access types BT EU MPLS access circuits EU MPLS access circuits by type DSL LL Ethernet 0 <=2MB 2-50MB MB Over 155MB FY12/13 FY13/14 FY14/15 Ethernet LL

10 Regulatory response to pan-eu Wholesale Ethernet requirements Regulated Ethernet Available Issues Austria Partially Significant geographic segmentation Belgium No Carrier grade Ethernet not available; delay with implementation of market review Czech Partially Bandwidth capped at 2Mbs France Partially Bandwidth capped at 1Gbs; Concerns about national coverage Germany Partially Bandwidth capped at 150Mbs Hungary Partially Bandwidth capped at 2Mbs Italy Partially Extreme prices, weak SLAs and slow provisioning Luxembourg No Netherlands Partially Weak SLAs Referred to European Court of Justice for delay in undertaking market review Spain Partially High prices, weak SLAs and slow provisioning UK Yes Sweden Partially Weak SLAs

11 Monthly cost Price variation of Wholesale Fibre Ethernet access Incumbent Reference Offer Ethernet leased line charges local access 5km 24 months M 100M 1G 10 G

12 Working days Hours from report Business grade SLAs real and effective? Provisioning timescales (Oct 2014) Fault repair times Minimum on-net Maximum (requiring fibre build) Standard Enhanced

13 Focus on: performance, price and reach to deliver a competitive pan EU corporate market Demand for corporate services is truly pan-european. National regulators should treat Broadband and fixed Ethernet technologies as complementary as they meet different demand requirements, especially at higher bandwidths. Focus on performance, price and reach. Regulation for performance sites should not be capped by bandwidth as this artificially segments the market (and competitive conditions) with little regard to actual competitive infrastructure in the local geography. xdsl based price sites should be delivered with business grade functionality and SLAs but not otherwise be gold plated as this reduces end customer benefits. Critically, ensure more uniform outcome of regulatory decisions.

14 bt.com/globalservices