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| Total turnover, including
share of ventures
|EBITDA before exceptional items
|Operating loss before goodwill
amortisation and exceptional items
|Capital expenditure on plant,
equipment and property
|Net operating assets
|Share of ventures’ net
assets, including goodwill
BT Wireless consists of our wholly-owned interests in European wireless
operations, including BT Cellnet in the UK, Viag Interkom in Germany,
Telfort in The Netherlands and Esat Digifone in the Republic of
Ireland. BT Wireless has approximately 16.9 million customers. BT
Wireless also includes Genie, our mobile internet business, one
of Europe’s leading mobile portals.
BT Wireless’ strategy is to attract and retain high-value
customers and increase revenues per customer by positioning itself
as a leader in the European mobile data market. Being wholly owned,
the wireless businesses will be managed on a unified basis, facilitating
the development of common technology and the swift roll out of services,
such as the Genie mobile internet portal and associated content
and applications, across the BT Wireless networks. BT Wireless has
developed relationships with a large number of applications and
content developers through its application developer forum. It will
seek productivity improvements through these cross business synergies
and seek network sharing options with others to reduce build out
costs where allowed.
BT Cellnet is our wholly-owned wireless business in the UK and is
the second largest mobile network operator in the UK, with 11.2
million customers, an increase of more than 50% during the 2001
financial year. This represents an estimated market share of approximately
26%. BT Cellnet’s total turnover for the 2001 financial year
was £3,031 million, with EBITDA for the same period of £591 million.
In the UK wireless markets, BT Cellnet has the second largest market
share by customer base and a strong position in the business market.
The UK market grew rapidly during the 2001 financial year and remained
extremely competitive, reflecting significant demand for competitively
priced pre-pay products.
BT Cellnet launched General Packet Radio Service (GPRS) services
in June 2000. In the UK Government’s 3G licence auction, which
concluded in April 2000, BT obtained a licence for £4.03 billion
to operate 3G mobile services.
In April 2000, BT Cellnet purchased, for £45 million, the 60% of
The Mobile Phone Store that it did not already own, as part of BT
Wireless’ initiative to obtain increased control over its
BT Wireless’ German operations are conducted through Viag
Interkom, which, since February 2001, has been our wholly-owned
subsidiary. Viag Interkom launched mobile telephony services in
October 1998 as the fourth entrant into the German market and, by
31 March 2001, had achieved an estimated 7% market share with over
3.7 million customers. Viag Interkom’s turnover, including
its fixed business, for the year ended 31 March 2001 was £1,078
million, with negative EBITDA for the same period of £407 million
before exceptional items. The fixed business market formerly addressed
by Viag Interkom is now served by BT Ignite Germany.
The German market is currently a highly competitive four-player
market, and two further entrants are possible following the auction
of six 3G licences carried out by the German Government in August
2000. Viag Interkom holds one of the 3G licences, which was purchased
for £5.13 billion.
The construction of Viag Interkom’s Global System for Mobile
communications (GSM) network is ongoing. It currently covers an
estimated 81% of the German population, but a national roaming agreement
with T-Mobil allows Viag Interkom to offer service covering approximately
99% of the German population.
Viag Interkom launched GPRS services in January 2001.
Viag Interkom is developing other initiatives to achieve a greater
share of the business market, such as cooperation arrangements with
specialised service providers. It is also seeking to improve network
costs per minute by increasing use of its network from selected
wholesale opportunities and by other initiatives, such as outsourcing
functions to achieve cost efficiencies.
Republic of Ireland
Our wireless operations in the Republic of Ireland are conducted
through Esat Digifone, which became a wholly-owned subsidiary in
April 2001. Esat Digifone entered the Irish market in March 1997
and, by 31 March 2001, it was serving over 1.1 million customers,
representing an estimated market share of approximately 41%. Esat
Digifone’s turnover for the year ended 31 March 2001 was £312
million, with EBITDA for the same period of £69 million. Esat Digifone
expects to apply for one of the four licences to be offered by the
Irish Government to build and operate a 3G network in Ireland.
Telfort launched its service in 1998 in the Dutch mobile market.
It now has a network covering over 97% of the population and more
than 918,000 customers representing an estimated market share of
approximately 8%. Telfort’s turnover, including its fixed
business, for the year ended 31 March 2001 was £301 million, with
negative EBITDA for the same period of £118 million before exceptional
items. The fixed business market formerly addressed by Telfort is
now served by BT Ignite Netherlands.
Telfort was awarded a 3G licence in July 2000 for £267 million.
Genie is BT’s mobile internet portal, comprising web and WAP
portals in the UK, France, Germany, Hong Kong, Italy, The Netherlands
and Spain. With more than four million registered customers, according
to Red Sheriff Services’ data collection software, Genie is
one of the major players in the mobile internet portal market, offering
content including entertainment, m-commerce, games, and the latest
sports, news and business information.
Genie also functions as an Application Service Provider (ASP) to
network operators, offering hosted, secure access to enterprise
applications through an integrated customised portal, and provides
mobile internet communications and portal services on a hosted basis
in the Asia-Pacific region.
In November 2000, Genie launched the UK’s first exclusively
online mobile service, offering mobile phones with mobile internet
access through text messaging and WAP.
By offering high quality content and applications and developing
personalised relationships with our customers, we believe Genie
will assist in increasing average revenues per user and reducing
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