BT losing customers fast

BT's customer loss worsening
Fri 29 October, 2004 14:03




LONDON (Reuters) - BT Group lost about half a million fixed-line
customers during the July-to-September quarter, with cut-price
offerings from rivals accelerating defections.

Communications regulator Ofcom said on Friday BT's BT.L carrier
pre-select rivals, which include Carphone Warehouse CPW.L and
Centrica's CNA.L OneTel, had expanded their customer base to 4.2
million at the end of September from 3.7 million at the end of June.

Ofcom said the 4.2 million figure represented around 15 percent of all
BT lines.

That would mean a sharp increase in the pace of customer defections
from the former monopoly, which had managed to stem customer losses to
around 100,000 customers in the preceding quarter.

BT had 19.5 million residential customer lines at the end of June,
making it the UK's dominant fixed-line operator by a long way. But its
figure includes those of the carrier pre-select operators, whose
customers pay line rentals to BT.

BT, which reports results for the half-year to September 30 on
November 11, did not comment on the Ofcom data.

The company has seen its fixed-line base erode steadily over the past
few years, while tariffs have fallen, making it hard for it to
increase revenue.

"Mainly as a result of growth in these services, BT's share of fixed
voice volumes fell from 56.7 percent to 55.4 percent in the three
months to June," the media-to-telecoms regulator said in its market
review for the July-to-September quarter.

BT's shares were down 1.1 percent at 186-1/2 pence in afternoon
trading.

In what could be bad news for the entire fixed-line telecoms sector,
Ofcom said average fixed voice telecoms use continues to decline
slowly, despite increased price competition and a record number of
consumers using non-BT services.

But the quarter also had a spot of good news for BT as Ofcom reported
strong broadband Internet take-up across Britain.

BT's wholesale unit provides the infrastructure for a host of Internet
service providers and benefits from any growth in the overall market.

Ofcom said the number of UK broadband connections passed the 5 million
mark during September, with around 50,000 new subscriptions added
every week. The broadband market has been boosted by a steep cut in
the prices that BT charges other Internet access providers.

"The UK has overtaken Germany in broadband penetration," Ofcom said,
adding that Britain, with 7.5 connections per hundred people, was
ahead of Germany's 6.7 but behind France's 8.3 connections.

"OrangeMan" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed) om...
> BT's customer loss worsening
> Fri 29 October, 2004 14:03
>
> LONDON (Reuters) - BT Group lost about half a million fixed-line
> customers during the July-to-September quarter, with cut-price
> offerings from rivals accelerating defections.
>

I was one of those 500,000, but I left because BT put up the line rental in that
period, and dropped the inclusive call allowance.
So it looks like BT will be at least £60,000,000 per year worse off, just based
on those quarterly figures, or if you believe BT's reasons for putting up the
line rental, BT will be better off, because they will not be having to maintain
those loss making line rentals. ;-)

"GwG" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)
> I was one of those 500,000, but I left because BT put up the line
> rental in that period, and dropped the inclusive call allowance.
> So it looks like BT will be at least £60,000,000 per year worse off,
> just based on those quarterly figures, or if you believe BT's reasons
> for putting up the line rental, BT will be better off, because they
> will not be having to maintain those loss making line rentals. ;-)

BT won't be losing anything like £60,000,000 on these customers.

Not just beause "they will not be having to maintain those loss making line
rentals" but as all customers of carrier pre-select companies
(Onetel/TalkTalk etc) still have to pay BT Option 1 line rental.

Also, if these customers are on more attactive tariffs with CPS companies
they may make more calls then they would have under BT - from which BT will
get a cut.

Journalists like saying BT are "losing" customers but a CPS customer isn't
exactly "lost" and even if CPS companies switch to WRL, BT Wholesale will
still get paid.

Regards
Sunil

"Sunil Sood" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> "GwG" <(E-Mail Removed)> wrote in message
> news:(E-Mail Removed)
>> I was one of those 500,000, but I left because BT put up the line
>> rental in that period, and dropped the inclusive call allowance.
>> So it looks like BT will be at least £60,000,000 per year worse off,
>> just based on those quarterly figures, or if you believe BT's reasons
>> for putting up the line rental, BT will be better off, because they
>> will not be having to maintain those loss making line rentals. ;-)
>
> BT won't be losing anything like £60,000,000 on these customers.
>
> Not just beause "they will not be having to maintain those loss making line
> rentals" but as all customers of carrier pre-select companies (Onetel/TalkTalk
> etc) still have to pay BT Option 1 line rental.
>
> Also, if these customers are on more attactive tariffs with CPS companies they
> may make more calls then they would have under BT - from which BT will get a
> cut.
>
> Journalists like saying BT are "losing" customers but a CPS customer isn't
> exactly "lost" and even if CPS companies switch to WRL, BT Wholesale will
> still get paid.
>

This one is lost because I have gone strictly mobile, and as I hardly make, or
receive, any calls, BT will not be getting much revenue from me. I am testing
VoIP on NTL broadband at the moment, so no line rental to pay at all, but NTL
connections are not a very stable, so a mobile will be needed as backup.

In message <(E-Mail Removed)>, GwG <(E-Mail Removed)> writes
>
>"Sunil Sood" <(E-Mail Removed)> wrote in message
>news:(E-Mail Removed)...
>> "GwG" <(E-Mail Removed)> wrote in message
>> news:(E-Mail Removed)
>>> I was one of those 500,000, but I left because BT put up the line
>>> rental in that period, and dropped the inclusive call allowance.
>>> So it looks like BT will be at least £60,000,000 per year worse off,
>>> just based on those quarterly figures, or if you believe BT's reasons
>>> for putting up the line rental, BT will be better off, because they
>>> will not be having to maintain those loss making line rentals. ;-)
>>
>> BT won't be losing anything like £60,000,000 on these customers.
>>
>> Not just beause "they will not be having to maintain those loss making line
>> rentals" but as all customers of carrier pre-select companies
>>(Onetel/TalkTalk
>> etc) still have to pay BT Option 1 line rental.
>>
>> Also, if these customers are on more attactive tariffs with CPS
>>companies they
>> may make more calls then they would have under BT - from which BT will get a
>> cut.
>>
>> Journalists like saying BT are "losing" customers but a CPS customer isn't
>> exactly "lost" and even if CPS companies switch to WRL, BT Wholesale will
>> still get paid.
>>
>
>This one is lost because I have gone strictly mobile, and as I hardly make, or
>receive, any calls, BT will not be getting much revenue from me. I am testing
>VoIP on NTL broadband at the moment, so no line rental to pay at all, but NTL
>connections are not a very stable, so a mobile will be needed as backup.
>
>
I don't think I would want to have to boot windows to make a 999 call!!!

Regards
--
Peter R Cook

"Peter R Cook" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> In message <(E-Mail Removed)>, GwG <(E-Mail Removed)> writes
>>
>>I am testing
>>VoIP on NTL broadband at the moment, so no line rental to pay at all, but NTL
>>connections are not a very stable, so a mobile will be needed as backup.
>>
>>
> I don't think I would want to have to boot windows to make a 999 call!!!
>

With a 'hardphone' VoIP connection, there is no need to boot windows, or even
have a computer connected, to make calls, but (I think) 999 calls are not
accepted through VoIP, hence, another need for a mobile phone for backup.

On 31 Oct 2004 in uk.telecom.broadband, "GwG" wrote:

>or even have a computer connected, to make calls,

and in a power cut ?

--
PlusNet <http://tinyurl.com/24ymz> - I recommend them and save some cash.

"Peter M" <us-(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> On 31 Oct 2004 in uk.telecom.broadband, "GwG" wrote:
>
>>or even have a computer connected, to make calls,
>
> and in a power cut ?
>

Then I use the dect phone ;-)

GwG wrote:
> "Peter M" <us-(E-Mail Removed)> wrote in message
> news:(E-Mail Removed)...
>
>>On 31 Oct 2004 in uk.telecom.broadband, "GwG" wrote:
>>
>>
>>>or even have a computer connected, to make calls,
>>
>>and in a power cut ?
>>
>
>
> Then I use the dect phone ;-)
>
>
HUH? DECT phone will not work in power-cut VoIP does not work in power
cut.. Thats why we have mobiles

On Mon, 01 Nov 2004 15:45:25 +0000, sean <(E-Mail Removed)>
wrote:

>HUH? DECT phone will not work in power-cut VoIP does not work in power
>cut.. Thats why we have mobiles

And a UPS.

--
Hiram Hackenbacker