BT restructures divisions after EE takeover

01 February 2016 | Alan Burkitt-Gray

BT has restructured itself into six divisions following the completion last week of its purchase of UK mobile operator EE. One of the divisions is EE, which continues under its old name, but parts of EE will be moved into other units of BT.

Openreach, BT’s last-mile division continues unchanged, though Sharon White, head of the UK regulator, Ofcom, is expected to announce her decision on the future status of the unit later this month.

BT Business and Public Sector, with around £5 billion of revenues, has been carved out of the existing BT Business unit along with EE’s business division and those parts of BT Global Services that are UK-focused.

BT Wholesale and Ventures, which provides wholesale services to more than 1400 communications providers, will be expanded to include EE’s MVNO business.

Gavin Patterson, group CEO, said: “The acquisition provides us with a chance to refresh our structure and we have done that by creating a major new division that will focus on businesses and the public sector in the UK and Ireland. We want to support those sectors by offering customers the very best services whether that be dedicated private lines, network products such as fibre broadband, mobile solutions, IT services or cyber expertise to keep them safe.”

BT Consumer is effectively unchanged, as is BT Global Services, except for those parts that go into BT Business and Public Sector. 

EE will focus largely on the consumer market retaining its brand, its network and its hundreds of high street stores. It will serve its customers with advanced mobile services, broadband and TV. It will also continue to deliver the emergency services network contract which was awarded to EE late last year.

BT has announced an all-male line-up to lead its new divisions. The CEO of BT Consumer will continue to be John Petter. EE’s CEO, who took over from Olaf Swantee following the merger, is Marc Allera. Graham Sutherland leads BT Business and Public Sector. Luis Alvarez will continue as CEO of BT Global Services. Gerry McQuade, currently chief sales and marketing officer, business at EE, will be its CEO of BT Wholesale and Ventures. The new CEO of Openreach is Clive Selley.

Meanwhile BT has announced that what is it accounted for 71% of the new broadband customers in the UK who were added by Openreach’s network during the last quarter of 2015: 130,000 out of 182,000.