Following last week’s Q4 results, today we saw how BT Group plans to implement its new strategy starting with the reshaping of its consumer division. There were a number of announcements made, the most important of which included:
A converged, smart network vision to bring together the best of broadband, mobile and Wi-Fi to provide seamless connectivity
A new product category and plan called 'BT Plus' which brings together the fastest home broadband, mobile and Wi-Fi on one bill
A 'keep connected' promise to keep customers online during problems with connectivity and when they move home
A converged network
as one of the most obvious reasons for the acquisition of EE, this was always something likely to have been in the pipeline. There is still a lot to be understood both in terms of how this is implemented technically and also positioned to customers. While convergence is a term that is used by the industry, it is a dated one and one that will mean little to customers of either BT or EE. Positioning and messaging here will be crucial.
BT Plus plans
As highlighted during last weeks results, the group is keen to focus on attracting higher spending customers. While pricing of Plus plans has not been released, it is without doubt a premium offering. Bundling as a concept has been slow to take off in the UK relative to other markets such as France and Spain. Success in these countries has partially been down to explaining the concept to customers face-to-face in-store. The fact that BT will now be returning to the high street in more than 600 EE retail stores will no doubt help with this drive.
Better customer service
This has been a weakness not only for the industry as a whole, but for BT specifically. While Ofcom has incentivised improved customer service this often hasn't resonated with customers. Home moves are often the most disruptive and bad experiences from the outset only fuel resentment. Increasing data allowances on mobile when customers move house and distributing 4G Wi-Fi mini hubs when the fixed network goes down are simple yet meaningful solutions to common connectivity challenges.
After what was a challenging set of results, no time is being wasted in beginning the transformation of the business. EE’s network leadership has arguably been partially a result of the passion and energy within the teams delivering on it. From the various events launching this next chapter, there feels to be a renewed sense of purpose within the division – something that will be crucial to deliver on what has been unveiled today. The strategy is due to be presented to the investment community later this week, but it will no doubt take time before we see the results reflected in the share price.
