BT Group
 
 
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Year ended, or as at, 31 March 2001:  
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Total turnover, including share of ventures 3,861m
Group turnover 3,470m
EBITDA before exceptionals 47m
Operating loss before goodwill amortisation and exceptionals (380)m
Capital expenditure on plant, equipment and property 936m
Net operating assets 3,584m
Share of ventures’ net assets, including goodwill 178m
Employees 18,800
BT Ignite, our solutions and broadband IP business, delivers a range of services, including customer solutions, application service packages, web hosting and data transport to European business customers.

Building on its position as a leading business in the European services market, as measured by customer and revenue base, BT Ignite plans to continue to build its revenues from the high end of the value chain – value-added services and complex solutions – from current levels of 50% of revenue. It aims to use its large sales force to add more business customers and increase revenue per customer by selling more of these higher value products and migrating customers towards tailored services, such as moving customers through hosting and applications to solutions. Its strategy for moving into profitability also includes increasing the throughput in its existing network infrastructure of cables and data hosting to benefit from operational gearing. We also expect to generate synergies across BT Ignite by establishing functional responsibilities, including single network management and single product management across the business. We are discussing a variety of strategic alternatives to the Concert joint venture which could include all, or a substantial portion, of the business currently within BT Ignite. See “Discussions with AT&T regarding Concert and BT Ignite” .

Across Europe, BT Ignite is primarily a service business supported by its own infrastructure. BT Ignite has a sales force of 4,000 employees, including 2,000 solutions consultants. It sells directly to businesses in Europe and sells to businesses in the UK through BT Retail’s sales force.

Value-added services
BT Ignite’s international solutions businesses had turnover of 2,082 million, including work done for other parts of BT, in the 2001 financial year. External turnover from solutions accounted for 5% of group turnover in the same period.

Syntegra, our global consulting and systems integration business, is a market leader in creating new systems, which, through the use of the internet and associated technologies, are transforming business-to-business relationships around the world. Syntegra has customers in more than 60 countries.

BT Ignite Solutions (formerly Syncordia Solutions) is a leading provider of integrated information and communications solutions. Underpinned by the internet and associated technologies, these solutions are based on end-to-end managed IP networks and the provision of e-business and e-CRM (electronic Customer Relationship Management) applications on these networks.
BT Ignite offers a range of advanced web hosting application and network services, utilising its 21 internet data centres in Europe. BT Ignite’s internet data centres provide the hardware, software and high-speed communications connections required by customers to run their websites and other online business applications, allowing these customers to focus on their core business and meet growing requirements for e-commerce.

BT Ignite Application Services provides software over IP networks to large and small companies, generally on a per user rental basis. Application Services has developed partnerships with key software providers, including Microsoft, Lotus, Commerce One and Verisign, to provide a range of e-mail, collaborative e-commerce and security applications.

European network
BT Ignite, with its European partners, has a pan-European fibre network which provides coverage to the top 100 commercial centres and serves over 400,000 business customers with 52,000 route kilometres of fibre cable connecting 250 towns and cities through Belgium, Denmark, France, Germany, the Republic of Ireland, Italy, The Netherlands, Norway, Spain, Sweden, Switzerland and the UK.

BT Ignite is responsible for broadband services based on DSL technology in the UK, selling wholesale DSL products to more than 150 service providers and corporate clients. These enable service providers to offer their own customers fast access to high-value content and applications. They also enable corporate customers to provide their teleworkers with fast, remote access to their private networks on the internet.
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