A little like oom really from my point of view - I believe they are the favoured company within their sector and despite the markets - Oftel and the G3 nonsense they will climb back. They pay a divi and this wioll be seen to be increasingly important in the days to come. They have new management and are looking to enhance shareholder value .....

I hold and swing trade a few and not adverse to intraday trading them.

ains


BT in web-based investor relations drive

London, February 7 2003, (netimperative)



by Chris Lake

BT is launching a web-based scheme which it hopes will improve communications with its retail shareholders and help cut costs.


Dubbed 'ShareholderPlus', the system allows investors to sign up and receive BT communications - such as reports, news releases, mandates and, subject to a change in the law, electronic tax vouchers - by email, rather than by post.

BT said this will help it achieve cost savings - by not having to print and despatch reports - and pointed out that it is also good for the environment.

Furthermore, it has negotiated a number of deals with companies such as Virgin Wines, Apollo Travel, RSA and National Car Rental, to market the service and said it will add new offers in the future if it proves to be a success.

BT claims to be one of the first FTSE100 companies to launch such a programme, though it is likely that more will follow.

www.btplc.com/shareholderplus

must admit I could never understand what they were saying - anyway. Has to be good for BT shareholders



IAIN DEYBUSINESS CORRESPONDENT - scotsman


UP TO 10,000 jobs might be lost in Scotlands call centres over the next five years as banks and insurers continue to ship jobs to India, according to the latest research.

Following a fact-finding mission to Bangalore, white-collar trade union Amicus has warned that Indias cheap but highly-educated workforce will continue to lure ever more back-office jobs from Scotland.

Further pressures to cut costs and continued improvements in technology will spark a fresh jobs exodus, the union has claimed, similar to that seen in Scotlands electronics industry during the past three years.

Evidence from the study, incorporating work done by academics in two UK universities, will be heard at a conference in Edinburgh today.

Roger Lyons, joint general secretary of Amicus, told The Scotsman: "10,000 jobs will pour out of Scotland over the next five years unless we take action immediately. We have seen the destruction of Scotlands traditional industries over the past 20 years and financial services have replaced metal bashing.

"We have to plan now to meet the reality that many companies are re-locating to India to cut costs and protect share dividends".

He added: "Industry, politicians and trade unions have now got to sit down and ask what it is that Scotland does best and plan to ensure that Scotland positions itself high enough up the industry food chain to protect its future."

Scotland is home to about 200 call centres, employing about 40,000 staff. In Glasgow alone, the industry accounts for 16,000 jobs.

Insurance giants Aviva and Prudential have recently announced plans to open call centres in India. Financial giants HSBC, Citigroup, GE and JP Morgan have already set up Indian operations.

Lloyds TSB also said it has "dipped its toe in the water," running its new government-backed Universal Bank from a centre in India with a staff of about 200. And telecoms giant BT recently sparked controversy by revealing its intention to open call centres in New Delhi and Bangalore this year.

Alongside an analysis of the impact Indias call centres willhave on the UK industry, the group has investigated working practices there to ensure that international labour standards are being met. The final report is expected next month.

Despite the fact that many administrative and call centre workers in India have two university degrees, the researchers found that labour costs are on average 40 per cent cheaper than they are in the UK.

Amicus said the governments 1 per cent cap on the administration charges levied by life and pensions companies is forcing these businesses to find new ways to cut costs.

The union also claims that "there is no evidence to date that corporate social responsibility is high on the agenda for organisations outsourcing or relocating to low-cost economies".

BT workers in Glasgow have also staged strikes in protest at the telecom companys plans to open call centres in New Delhi and Bangalore later this year.

Management consultant Accenture has previously predicted that as many as 70,000 UK insurance jobs will be outsourced to India by 2010.

Scottish Financial Enterprise chief executive Amanda Harvie said "there is no evidence" that Scottish-based financial services companies are relocating their call centre jobs.

She added: "Many financial services call centre jobs require a high level of skill to explain often complex issues, and thats where Scotland comes into its own."

A spokesman for CBI Scotland said: "There is increasing global competition for call centre jobs and what we have to do is ensure that we are higher up the value chain."

BT urges action on rural broadband bbc news


Getting broadband into schools is a priority
BT has called on the UK Government to kick-start rural broadband initiatives.

BT's Director for Public Sector Broadband, Patricia Jones, said it was no doing enough to get fast net services to those on the wrong side of the digital divide.

"Frankly government efforts are too slow," she said. "I challenge it to get 20 regional initiatives up and running in the next year."

In a debate in parliament last week, E-commerce Minister Stephen Timms acknowledged that the government needed to do more to improve broadband coverage.

If public sector organisations had broadband, then these connections could also be used by local residents he said.

Broadband chief

But talks with BT have revealed cultural differences about the best way to get broadband to councils and other local groups, said Ms Jones.

It is no secret that compared with a number of other countries the UK has made a slow start with broadband communications

Stephen Timms, E-commerce Minister
"The government has disciplines, that while laudable, take a very long time to execute," she said.

"The pace has to be stepped up if the government is to get the UK to the top of the European league tables," she added.

The government has been criticised by MPs for not doing enough to provide broadband to the third of the UK which still does not have access to the technology.

As part of the drive to promote broadband, the government has named a civil servant at the Department of Trade and Industry as its director of broadband.

Stephen Speed will be responsible for managing official broadband policy, including benchmarking the UK with other nations and ensuring that schools and GP surgeries get the cheapest possible access to broadband.

2006 deadline

Some progress has been made on getting schools and surgeries wired

Broadband in schools may be the be all and end all for Stephen Timms but for Charles Clarke, getting kit in schools is the be all and end all,

DTI spokeswoman
According to the Department of Health, 1,397 of the 8,000 GP surgeries signed up to NHS Net have been upgraded since January and the rest will get broadband by 2004.

Around 40% of schools have broadband connections.

The government is committed to a 2006 deadline for all schools, GP surgeries and courts to be connected to fast net services.

To push it forward at ministerial level, Stephen Timms himself will head up a steering group with representatives from each of the major government departments to make sure that they are all doing their bit to ensure the widest roll out of broadband.

BT says that it has given the government a roadmap for how to get broadband coverage up to 90% of the population.

But the government says it is juggling a lot of different balls.

"Obviously broadband has to be fitted in with other priorities," said a spokeswoman for the Department of Trade and Industry.

"Broadband in schools may be the be all and end all for Stephen Timms but for Charles Clarke, getting kit in schools is the be all and end all," she said.

Increasingly MPs have been taking an interest in fast net access, especially those who live in broadband black spots.

Mr Timms reassured parliament that the UK was finding its broadband feet after a shaky start.

"It is no secret that compared with a number of other countries the UK has made a slow start with broadband communications," he admitted.

But the government is hopeful that this month the UK will pass the two million connections mark, just nine months after the millionth connection was celebrated.

sector just positive


By David Kuo (TMFDragon)
May 6, 2003


The deregulation of the telecom industry in the eighties breathed life into a sleepy and unattractive sector. It also brought to the attention of the private investor the tremendous potential of investing in businesses that were far from lethargic and showed the capabilities of being able to grow through innovation.

Much was expected of the telecom operators, and also from those businesses that were associated with the sector, like equipment suppliers. To be honest, far too much was expected of these companies and valuations ran way ahead of reality. Billions of pounds were thrown at the industry creating a telecom bubble and valuations that could never be sustained.

Today, I see the telecom sector as two separate, though somewhat interconnected, industries. The fixed line sector comprises those businesses that operate through cables and wires that allow voice and data to be transmitted through fixed line networks. The wireless sector does much the same job but predominantly through the airwaves.

BT Group (LSE: BT.A)(NYSE: BTY) is still the largest fixed line telecom operator in the UK. Traditional voice services at BT are likely to come under threat because of cheaper offerings from alternative telecom providers. This could put revenues from its conventional voice services under more pressure. Nevertheless, the main driver for growth at the company is likely to be broadband services. In January, BT said it was signing up in excess of 25,000 broadband customers a week.

The company, which is on a valuation of 21 times historical earnings, does not appear to be that cheap at first sight. Its high level of debt, which stood at 12.9b at the end of December, makes it even more unattractive. However, profits are expected to have risen in the year ended March 2003, putting the company on about 12 times earnings for this period. The shares currently offer a dividend yield of 2.3%.

Tomorrows Times

BT defuses India pay row


The UK is losing call centre jobs to India
Telecoms giant BT has denied reports that Indian workers subcontracted to work for the company in the UK are paid less than their British counterparts.

The Times newspaper reported on Tuesday that software engineers employed by Mahindra BT, a BT joint venture based in Pune, Western India, could be working in the UK for as little as a quarter of the usual wage.

The Communication Workers' Union (CWU) said it was investigating the reports.

"BT's got to be really careful with its reputation," a CWU spokesman said.

Trade union groups have previously clashed with BT over its decision to open new call centres in India rather than the UK.

Rebuttal

But BT said the Mahindra BT employees' full remuneration package was in line with the wages usually paid for software maintenance work in Britain.

"The total package of the Indian sub-contractors working on BT projects is comparable to those of their UK counterparts and well above the UK national wage. They do not lose out," the company said in a statement.

"We are extremely proud of our employment record and of our commitment to corporate social responsibility."

BT added that Mahindra BT subcontractors are typically employed to carry out basic software maintenance, freeing up BT engineers to work on "leading edge developments."

Farmed out

Many of the usual restrictions on Indian nationals working in the UK have been eased for Mahindra BT employees thanks to an inter-company transfer arrangement, the Times reported.

Outsourcing customer service and IT maintenance work to Indian subcontractors is a growing trend in the UK, with many companies attracted by India's low labour costs and highly skilled workforce.

Last year, HSBC chief executive Sir Keith Whitson caused an outcry by suggesting that the bank's Indian call centre staff performed better than their British counterparts.

ann on premium rate voice deal worth 70 million

someone somewhere always seems to be whinging .... guess they must be doing something right :-)


MP critical of 'unfair competition' from BT
By Tim Richardson
Posted: 06/05/2003 at 15:19 GMT


Labour MP Brian White has branded a recent wholesale price cut from BT as "unfair competition" and called on the telecoms regulator to react more quickly to complaints.

He also blamed "BT's dominant position in the wholesale market" as being repsosible for current problems concerning the roll out of broadband across the UK.

The comments from the MP for Milton Keynes North East followed formal complaints to Oftel from five telcos (Energis, mediaWays.uk Ltd, Thus, Tiscali and Your Communications) concerning price cuts for BT's wholesale IPStream ADSL product - the wholesale end-to-end service provided by BT Wholesale to the telco's retail operations and other service providers.

The telcos argue that BT has failed to pass on similar price cuts to its wholesale Datastream service - a product that allows other service providers to use their own networks to provide competitive broadband services.

Oftel is currently investigating the complaints.

Said Mr White: "BT is reducing the price of IPStream... but it is not reducing the price of DataStream, which network suppliers use. Telecoms companies that use their own network and therefore use the DataStream product, however, pay a higher price. To me, that is unfair competition.

"The matter has been raised with Oftel, but the procedures by which it is being resolved are far too slow. Again, one of the issues that was raised when we discussed Ofcom was the speed with which such regulatory issues are resolved. Those kinds of barriers cause real problems. When Ofcom comes into existence, we need to ensure that its speed of reaction is far faster than Oftel's," he said.

Earlier in the debate, the e-minister, Stephen Timms, talked up the progress being made in broadband: "It is no secret that compared with a number of other countries the UK has made a slow start with broadband communications" before adding that the UK is now making "rapid progress".

He also announced that "career civil servant", Stephen Speed, has been named as Director of Broadband. As part of the newly created position, Mr Speed is to take overall responsibility for coordinating the implementation of the Government's broadband strategy.

BT DIALS AMERICAN BOOST SKY NEWS

BT plans to more than double its network size in North America after scrapping its joint venture with big US rival AT&T.

It is to add 14 new network "nodes", or connection points, to take the total to 23 in cities across the US, Canada and Mexico.


Its aims of beefing up its presence in North America is part of ongoing expansion across the world.

It has also signed up two Asian telecoms partners, Japan Telecom and Singapore's Starhub.

BT had considered buying up a US network operator or setting up North American partnerships, like it did in Asia.

Problems

But it eventually decided that an acquisition would cause network integration problems and take too long to complete.

BT expects to spend about 4.7m expanding the North American network - some 65% of the 2,000 multinational companies it targets have a presence there.

The work will take place over the next three years in cities such as Toronto, Cincinnati, Phoenix, Detroit, Washington DC and Mexico City.




Last Updated: 09:19 UK, Thursday May 08, 2003

J P Morgan overweight on BT - optomistic on pension situation and cash flow

going well today and outperforming market and sector @ plus 3.4%



ains

Their target price is 225p against the current 182p

TELECOMS giant BT is to spend 4.7 million doubling the size of its North American network as part of a plan to fill gaps left after scrapping a joint venture with United States rival AT&T.

The company said it would add 14 new network nodes, or connection points, upping its total to 23, in cities in the US, Mexico and Canada, to bring the network closer to corporate customers locations.

BT revealed the decision to add to its North American network a week after it signed up two Asian telecoms partners, Japan Telecom and Singapores Starhub, to beef up its service in the region.

"We decided to build organically in North America because it was the fastest option and gave us the best technical design," said BT Americas chief operating officer, Chuck Pol.

Mr Pol said BT had considered buying a US network operator, or setting up North American partnerships as it has done in Asia, but decided an acquisition would cause network integration problems.

"In the Americas, we looked for a franchise partner, but we didnt find one that had what we wanted," he added.

BT considered AT&T as a potential partner, but Mr Pol said matching the companies networks would have limited technical capabilities.

BTs international network is based on internet technology known as Internet Protocol , but while IP is a widely used standard in telecoms networks, it does not work the same on different carriers networks, Mr Pol said.

BT expects to spend about 4.7m expanding the North American network. Mr Pol noted that about 65 per cent of 2000 multinational companies targeted by BT have a presence in North America.

The group plans to add about seven of the network points by the autumn. It will leave the remainder for next year and the year after, depending on customer requirements.

Cities where it plans to add nodes include Toronto, Cincinnati, Phoenix, Detroit, Washington DC and Mexico City.

currently 2nd in the ftse100 risers board @plus 4.68%


09 May 2003 15:22 BST

BT shares rise ahead of results, pension gap news

By Braden Reddall and Louise Heavens
LONDON, May 9 (Reuters) - Shares in BT Group Plc gained five percent on Friday as investors took a second look before its full-year results, when the British telecoms firm will give a figure for its pension funding gap and put the issue behind it.

Concerns about the gap of several billion pounds will have eased with a recent recovery in the British stock market, in which much of the former monopoly's pension money is tied up.

BT announces its results for the year to end-March on May 22.

The company also received a boost this week from Goldman Sachs, which downgraded the entire wireless sector. The British company is Europe's only major fixed-line telecoms group without a mobile phone network.

"People have been switching out of European wireless into fixed line," one dealer said. Other dealers said the shares were rebounding from a sharp sell off on Thursday, which left the shares underperforming the wider market by some margin.

Shares in BT were 5.25 percent higher at 185-1/2 pence on Friday, within a few pennies of its highest close since January.

"We expect BT to announce the findings of its actuarial review, removing months of uncertainty, and give guidance on dividend policy. In both areas, we expect to hear positive news," JP Morgan analysts said in a research note, reiterating its "overweight" stance and a fair value of 225 pence.

JP Morgan estimates that under the new FRS17 accounting method, BT's funding gap is 7.4 billion pounds. But under its preferred methods, the investment bank estimates the gap is between 2.5 billion and 3.2 billion pounds.

BT has consistently said it does not expect its annual pension deficit payment to be much different from the current 200 million pounds.

In February, BT reported a better-than-expected profit, but concerns about the pension fund gap knocked its shares lower. They fell as low as 141 pence in March and despite a recent recovery, BT has still underperformed the DJ Stoxx pan-European telecoms index by 13 percent since the start of 2003.

"Operationally, the BT Group is a utility, and should trade as such. However, the materiality of the pension is such that BT equity also plays out as an option on market movement," Williams de Broe analyst Morten Singleton said, repeating a "buy" rating.

SG Securites has also reiterated a "buy" on BT, focusing on its improving profitability despite low revenue growth.

its all getting very silly with oftel behaving like a spoiled child



BT fails to stop rival copying advert
By Robert Budden, Telecommunications Correspondent
Published: May 9 2003 20:32 | Last Updated: May 9 2003 20:32


BT Group embarked on the first steps to stop a rival from mimicking its advertising campaign for directory inquiry services on Friday at the High Court in London.


BT had been running a press advertising campaign flagging its new directory inquiries number that will replace "192" when it is disbanded in August. But the telecoms group was enraged when a new entrant, The Number, copied the exact format of the advert to promote its own service.

On Friday, the High Court failed to give BT an immediate injunction on The Number's advert, but required it to give BT 48 hours' notice if it intended to re-use the same advertisement.

The ruling follows a referral by Oftel, the telecoms regulator, of BT's original advert to the Advertising Standards Authority.

Oftel is understood to have been annoyed that BT's advert did not prominently point out that more than a dozen new companies would be competing to offer directory inquiries services as part of deregulation of the sector. The 192 service will be superseded in August by six-digit numbers starting with "118". In the meantime, the new telephone numbers will run alongside 192.

The wranglings highlight the seriousness with which BT is taking the threat of new competition. BT currently answers almost 700m directory inquiry calls a year in a market worth about 300m ($480m) annually. The telecoms operator is desperate to hold on to as much of this market as possible in the face of new competitors.

As part of this drive, BT has placed an advert promoting its new directory inquiries number on the front page of all of its phone books. It is also seeking to ensure that its new number is the only service that is mentioned on a recorded message when consumers dial 192 after August.

However, these moves have provoked concern at Oftel, which is considering barring distribution of BT's phone book because of the prominence of the advert.

bought in at 182p last week and have already risen 10p on Friday on better sentiment from brokers and there is every possibility they will breach 200p next week.. lets wait and see..

Goldman Sachs initiates coverage of FKI with an in-line rating and reiterates its in-line rating for BT Group (BT.A).

oops wrong thread!

deleted

More UK firms plan broadband upgrade
17:46 Tuesday 13th May 2003
Graeme Wearden


UK companies want broadband, but nearly half of existing business users think they'd ditch it if prices rose by just 10 percent
Over a third of businesses with Internet access expect to soon upgrade to a broadband connection, according to new figures from Oftel.

In its latest survey of Internet use, the regulator found that 15 percent of firms thought they were "very likely" to move to broadband and a further 19 percent considering it "fairly likely".

This is in addition to the 19 percent of wired SMEs that had already moved to broadband by February this year, when the survey took place.

Businesses who currently use a pay-as-you-go dial-up connection are most likely to move to broadband soon, with six in 10 expressing an interest.

Insufficient use of the Internet was the main reason given by small businesses for not upgrading to broadband, followed by price. For medium-sized firms, price was only the second-most popular reason for avoiding broadband, behind satisfaction with current surfing speeds.

Oftel also found that only 55 percent of businesses thought they would carry on using broadband if prices rose by 10 percent. A 50 percent rise in broadband prices would see 86 percent of business users move elsewhere -- to ISDN, unmetered or metered dial-up -- or simply stop using the Web.

The regulator cautioned, though, that this kind of research should be treated with caution because it asks people to speculate about their possible future behaviour.

Furhtermore, the research was conducted before BT slashed its wholesale business ADSL prices by some 50 percent. This is expected to give a significant boost to business broadband take-up -- a conclusion backed up by this Oftel report.

BT wants to embrace BB partners
By Tim Richardson
Posted: 13/05/2003 at 10:19 GMT


BT wants to build partnerships across the country to help extend the reach of broadband to people in rural areas.

In particular, it wants to reach out to its competitors and share with them the knowledge it has gained from a number of broadband initiatives.

Initiatives such as the project in Caerphilly where BT is working with the local borough council, the Welsh Development Agency and steelmaker Corus, to provide broadband to more local people and drive down costs for small businesses - and all to help revitalise Caerphilly's economy.

Laudable stuff indeed.

According to Bill Murphy, MD of BT Regions: "BT is leading the way towards a truly Broadband Britain.

"BT is now volunteering to share its initiatives with other partners who also wish to see wider access and greater take-up of broadband services, in a truly competitive UK marketplace.

"In addition, we will make our 'Broadband Britain Blueprint' available to our competitors who also have responsibilities for creating a broadband-enabled society across the UK," he said.

May 16, 2003

TIMES Rumour of the day



BT GROUP ticked up 3p at 189p amid talk that next weeks full-year results could be accompanied by a large contract win from Royal Bank of Scotland. The telecoms carrier, which has recently sealed deals with Unilever, HBOS and Abbey National, is said to be the front-runner for a five-year outsourcing and network management deal valued at north of 100 million.

Durlatcher reminds their trading clients that the close was highest since january and expects a breakout to the upside ..... hope so - my third biggest holding at this time


ains

Zooming up the riser board - now 8th @ plus 2.51%