British fixed line incumbent BT has announced that it is to split its BT Retail into two separate businesses, BT Consumer and BT Business, from September 2013. In announcing the corporate restructure the telco said that it expects the move to ‘enable the company to better serve its customers and focus even more on delivering its strategic priorities’.
BT Retail currently comprises four customer-facing units, those being BT Consumer, BT Business (which supplies SMEs), BT Enterprises (which consists of BT Conferencing, BT Payphones, BT Directories, BT Fleet, BT Wi-fi, BT Redcare, BT Expedite and Fresca, and BT Tikit) and BT Ireland. Under the restructuring plan, BT Enterprises and BT Ireland will merge with BT Business to form the new BT Business division, while BT Wi-fi and the consumer part of BT Ireland will transfer to BT Consumer.
Commenting on the development, Gavin Patterson, the current CEO of BT Retail CEO, and soon-to-be BT Group CEO, said: ‘BT Retail has delivered well for many years now contributing strong profits to the group. It is time however for the business to be split in two given the intensely competitive nature of the consumer market and our strong ambitions in the business space.’