Annual Review and summary financial statement

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Annual review > Delivering today Investing for tomorrow > Broadband

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Broadband

“Information technology is transforming our world and broadband is at the forefront of this revolution. By speeding up communication, broadband is opening up new opportunities in almost every area of our lives. It will play a central role in the reform of our public services, improving our competitiveness and building a modern digitally connected Britain.”

So said the Prime Minister, Tony Blair, when he visited the broadband-enabled Trimdon exchange in his constituency. 

A couple of years ago, people were sceptical about the idea of Broadband Britain. They thought it was only something for the tech-savvy. 

But as the UK’s leading supplier of DSL (digital subscriber line) broadband services, we’ve turned that perception round. We’ve put the infrastructure in place and we’ve proved that the demand for broadband is enormous.

From narrowband to broadband
BT is transforming itself from a narrowband to a broadband company. In February 2004, we passed our target of two million wholesale broadband lines, just eight months after hitting our first million, and in May 2004 we reached 2.45 million. 90% of UK homes and businesses are now connected to broadband-enabled exchanges. And we continue to work in partnership with community organisations and business development agencies, to explore innovative ways to bring broadband to people connected to the very smallest exchanges in the UK, or who live more than six kilometres from their nearest exchange. 

The first step was upgrading to broadband more than 1,100 of our exchanges where there was a clear commercial case for doing so.

In July 2002, we introduced a demand-driven registration scheme, which enabled people in areas where the exchange had not been upgraded to register an interest. This hugely successful scheme attracted more than 860,000 registrations, helping us match our investment to demand, and the total of exchanges upgraded as at 19 May 2004 stood at 2,652.

Because the registration scheme gave us such a clear picture of demand, we were able to announce in April 2004 the speeding up of the delivery of broadband services to rural communities. The scheme is now closed and we intend to roll out broadband to exchanges serving 99.6% of the UK’s homes and businesses, by no later than the summer of 2005.

The broadband experience
For customers at home, broadband is more than just another technology; it’s a whole new experience – faster, richer, more interactive, more rewarding than its dial-up predecessor. 

And the visual dimension is proving to be critical. Narrowband may be OK for text; but the broadband experience offers the chance of video emails, the chance to download video clips or holiday trailers, without ever leaving home.

Because we know that different customers have different broadband requirements, we offer a Broadband from BT Family range of products and services, from BT Broadband Basic – for less than £20 a month – to BT Broadband 1Mb – our fastest broadband service so far.

During the year, BT and Yahoo! jointly launched BT Yahoo! Broadband, which gives customers high quality, compelling and personalised content and  services (news, sport and entertainment) and advanced security (anti-spam, email anti-virus and a free firewall) for £29.99 a month.

We also announced a set of innovative broadband services that will be at the heart of our broadband lifestyle strategy, enabling the delivery of compelling, personalised content. These are:

bulletpointFlexible Bandwidth, which enables users to upgrade the speed of their connection at a click of a button if, for example, they want to watch a movie
 
bulletpointBT Communicator, for making free PC-to-PC calls, or PC-to-phone calls at BT Together prices, and instant messaging

bulletpointBT Rich Media, which enables users to receive, manage and pay for content, securely, online. 

By giving customers a wide choice of connection speeds and content options we aim to drive broadband adoption in the UK and reach our target of five million broadband connections by 2006. 

The broadband economy 
And broadband is driving change in the economy as a whole. 

At the end of the 2004 financial year, BT Business Broadband remained the leading ISP (internet service provider) for SMEs (small and medium enterprises) in the UK. We had more than 240,000 business customers, many of whom were customers for our added-value broadband services such as Internet Security Pack and Internet Business Pack

At the end of March 2004, we were converting business customers to broadband at the rate of more than one business customer for every minute of the working day. 

Broadband can also transform the ways corporations and other large organisations communicate with customers, suppliers and employees. Broadband teleworking, for example, offers businesses the chance to build a diverse and motivated workforce, while offering employees the chance to create a more rewarding work-life balance.

In April 2004 we launched BT Connected & Complete, featuring Microsoft technology – a one-stop shop providing small businesses with secure broadband access, applications, services, support and maintenance – all from a single source and on one bill. 

In May 2004 we announced a series of price cuts – of between 15% and 70% – and simplification of our LLU (local loop unbundling) product, which will benefit those companies willing to innovate and invest in broadband infrastructure.

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