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

talk of the Royal Bank of Scotland being close to announcing a renewed contract with BT to manage all of its telecoms systems.

The long-term agreement is still to be signed, but it could be worth around 65 million per annum to BT.




ains

Just a reminder that from yesterday anybody subscribing to BTs BT 'No Frills' Broadband ADSL service will gain two months of free digital music downloads via the operators Dotmusic portal.

The offer is valid until 31st March 2003 and lets you download up to 100 free music tracks from a collection of over 120,000. The standard subscription of 4.99 per month will be reinstated for April.

Fixed wireless broadband too pricey for ISPs
By Dinah Greek [18-02-2003]

Smaller service providers lack resources to roll out more services, says analyst
Few internet service providers (ISPs) have the enthusiasm or cash to roll out further residential wireless broadband services, according to analyst Ovum.
Even the lure of a low reserve price for the 3.4GHz wavelength, previously used for telephony services, may not be enough to tempt many smaller independent ISPs.

And rather than use the frequency to roll out broadband access to consumers, as the government hopes, larger telecoms operators could take advantage of the removal of many restrictions to snap up the licences while continuing to use the frequency as extra bandwidth for their existing services.

"In the financial climate who has got the hunger left to deploy new networks? This means fixed wireless is still struggling to sell," said Michael Philpott, a broadband market analyst with Ovum.

The most likely outcome could be that licences are sold to major players such as BT, according to Philpott.

"They could buy the spectrum and create more than one source of revenue for themselves by offering both retail and wholesale services."

On paper the 3.4GHz spectrum is perfect for broadband deployment to rural areas where cable and Asymmetric Digital Subscriber Line (ADSL) is too expensive to roll out.

It has a similar bandwidth offering to DSL but with a greater reach, and the equipment is cheaper to install than for higher frequency wireless spectrums.

But the main drawback of fixed wireless access is the cost to the ISP and the consumer. Economies of scale mean that ADSL prices are dropping all the time, whereas fixed wireless asset prices are largely standing still.

Dave Thorpe, operations manager for business-to-business ISP Internet Central, based in Norfolk, said: "Investment costs to ISPs for fixed wireless services are enormous.

"There is the investment in hardware that is needed and the bandwidth has to come from somewhere. This usually means linking to a local BT exchange.

"We charge businesses 750 for installation, then 350 per month for a 2Mbps leased line. We couldn't charge this to residential customers so would never get the cost of investment back."

But the Radiocommunications Agency and the Department of Trade and Industry have had a difficult job pitching the licences at the right price, argued Rob Mortimer at wireless DSL equipment vendor Alvarion.

Removing restrictions that would force operators to provide broadband access would not necessarily backfire, he said.

"While companies such as Vodafone and Orange could be interested in the 3.4GHz spectrum for backhaul services, there is a lot of interest from rural ISPs to provide broadband services."

By Tim Richardson
Posted: 18/02/2003 at 12:25 GMT


BT may fall short of reaching its target of one million broadband customers by the end of June, according to a report just published.

Enders Analysis reports that the wholesale take-up of BT's DSL service is currently growing at an "exceptional" pace and that this would have to be sustained until the summer for BT to meet its target.

During January, the report says BT Wholesale connected 70,000 ADSL lines, compared to an average of 50,000 a month during Q3 2002.

This is disputed by BT Wholesale, which said that in January more than 80,000 DSL lines were connected. It also claims that connection rates are accelerating with 25,000 connected in the first week of February alone.

As long as these levels of take-up are sustained then BT looks set to hit its target. A spokesman for BT Wholesale said the telco remains "absolutely confident" that it will do so.

But Enders Analysis isn't so sure, which is why it is taking a more cautious approach, suggesting that it would be "touch-and-go" whether BT Wholesale hits its million mark.

Of course, whether BT misses its target by a few weeks is not really of any great consequence. The important thing is that with more than 650,000 DSL connections in the UK, broadband is beginning to make its mark. But at what cost?

According to the report, BT has been forced to rethink its broadband strategy following the "disappointing" take-up of its much-hyped, no-frills, access-only BT Broadband service.

When it was launched last year some analysts predicted that this access-only product could sign the death warrant for traditional service and content-included ISPs.

But with only 100,000-plus customers so far and millions spent on promoting the product, BT is still way-off the tough 500,000 target it set itself for the end of June.

Publicly, BT is still optimistic that it will hit this target, something challenged by Enders Analysis.

Perhaps more interesting, though, is the fact that BT Broadband's failure to catch on as hoped has breathed new life into the telco's ISP, BT Openworld, which was effectively kicked into the long-grass last year.

Now it seems BT is ready to spend cash on it once again in a bid to increase numbers and help it reach the million.

Tuesday 18th February 2003


Broadband UK Internet connections reach one in ten
[Computer Buyer] 12:32

The Office of National Statistics has covered the month of December 2002 in its latest monthly report on UK Internet connectivity.
The headline figure is that the total number of subscriptions for access to the Internet actually fell - month on month - by 1.1 per cent. This is attributed to seasonal factors involving the Christmas holiday. On a yearly basis, however, Internet connectivity grew 7.4 per cent compared with December 2001.

Of more interest is the statistic that 10.1 per cent of subscriptions to the Internet now involve fast dedicated access (broadband or fixed lines). The Office of National Statistics reports that the yearly growth for permanent connections was 262.7 per cent, with an increase of 7.3 per cent from November to December 2002.

By contrast, the relative decline of dial-up connections - which include ISDN - has continued. The figure for December 2002 stands at 89.9 per cent, down from the 97 per cent of all subscriptions in December 2001.

Make no mistake, however - this is not to say that one in ten people now enjoy broadband. The official figures relate to the nature of Internet subscriptions. Nevertheless, the stats provide a useful and consistent indication of the take up of broadband.

Alun Williams

The share price seems to have'bottomed at around 165/169p ..... time to add a few in the very next intraday dip ..... some useful shareholder offers on new phones - we need a new cordless as some of the current ones we use are nearly three years old and batteries are starting to wear out - like the look of the On Air 2300SMS exec which enables you to send/receive teaxt messages as well as incorporating an ansaphone ..... save around 70 on a base unit + three extra handsets ......

ains



BTo gets tough with Sat bandwidth hogs - again
By Tim Richardson The Reigister
Posted: 17/02/2003 at 13:48 GMT


BT Openworld has threatened around 40 of its broadband satellite customers that it might have to cap their service if they continue to hog bandwidth.

In a letter to customers BT's ISP has warned them that they have been "using an excessive amount of bandwidth on a regular basis".

And unless they curtail their usage, then BT Openworld warned: "We will soon have to start imposing bandwidth limitations on your account at peak hours so that all our customers have a fair share of bandwidth."

Of course, instead of imposing a restriction, BT Openworld wants to work with those heavy users in a bid to help them manage their usage more effectively.

A spokesman for BT Openworld told The Register that it did not want to cap usage or kick anyone off the service for over-use and hoped that those people contacted would co-operate.

Indeed, when BT Openworld warned satellite customers last September about over-use, the matter was resolved without any further action on BT's behalf, he said.



BT may fall short of reaching its target of one million broadband customers by the end of June, according to a report just published.

Enders Analysis reports that the wholesale take-up of BT's DSL service is currently growing at an "exceptional" pace and that this would have to be sustained until the summer for BT to meet its target.

During January, the report says BT Wholesale connected 70,000 ADSL lines, compared to an average of 50,000 a month during Q3 2002.

This is disputed by BT Wholesale, which said that in January more than 80,000 DSL lines were connected. It also claims that connection rates are accelerating with 25,000 connected in the first week of February alone.

As long as these levels of take-up are sustained then BT looks set to hit its target. A spokesman for BT Wholesale said the telco remains "absolutely confident" that it will do so.

But Enders Analysis isn't so sure, which is why it is taking a more cautious approach, suggesting that it would be "touch-and-go" whether BT Wholesale hits its million mark.

Of course, whether BT misses its target by a few weeks is not really of any great consequence. The important thing is that with more than 650,000 DSL connections in the UK, broadband is beginning to make its mark. But at what cost?

According to the report, BT has been forced to rethink its broadband strategy following the "disappointing" take-up of its much-hyped, no-frills, access-only BT Broadband service.

When it was launched last year some analysts predicted that this access-only product could sign the death warrant for traditional service and content-included ISPs.

But with only 100,000-plus customers so far and millions spent on promoting the product, BT is still way-off the tough 500,000 target it set itself for the end of June.

Publicly, BT is still optimistic that it will hit this target, something challenged by Enders Analysis.

Perhaps more interesting, though, is the fact that BT Broadband's failure to catch on as hoped has breathed new life into the telco's ISP, BT Openworld, which was effectively kicked into the long-grass last year.

Now it seems BT is ready to spend cash on it once again in a bid to increase numbers and help it reach the million.

Wednesday February 19, 01:52 PM





BT pulls discount offer that breached licence


LONDON (Reuters) - Telecoms regulator Oftel has said that former telecoms monopoly BT Group (LSE: BT.L - news - msgs) has withdrawn a discount offer that put it in breach of its licence.


Oftel issued a provisional order against BT following a complaint by telecoms firm Vanco (LSE: VAN.L - news) about RHM, a BT service reseller which had offered a discount to IBM (NYSE: IBM - news) while Vanco attempted to sign up the U.S. computer giant itself. BT's licence says it must publish any discounts offered to customers.


"I welcome the steps BT has taken to comply with its licence and the commitments it has given to ensure that similar unacceptable behaviour does not occur again," David Edmonds, director general of telecommunications, said in a statement.

oops ..... main market down 1.84% - sector down 3.12% - BT down 4.46%




ains



UK games machine operator looks to broadband

London, February 19 2003, (netimperative)



by Richard Agnew

Leisure Link, the games machine giant, has inked a multi-million pound deal for the supply of broadband as part of an expansion plan which will see it roll out 18,000 more digital terminals over the next three years.


The company's digital division, Inspired Broadcast Networks (IBN), is paying BT 17.5m to provide ADSL lines to its pay-to-play touch-screen machines, which provide punters with fixed-odds betting, quiz and arcade games in pubs, amusement arcades, service stations and betting shops across the country.

The agreement will see the 3,000 terminals IBN currently operates upgraded from ISDN by September, and 18,000 new broadband lines installed to facilitate the roll-out of a raft of new betting and gaming machines and services over the next three years.

IBN chairman Russell Hoyle told netimperative that potential new services would include digital music delivery and downloading of content to mobile phones. It currently allows mobile users to pay for ring-tones via its machines.

Hoyle added that the ADSL upgrade would allow it to increase the number and sophistication of the games available, to manage the content better, fix faults remotely and change services overnight.

Slot and games machine operators are increasingly looking to the web for such benefits. Swedish online gambling software company Boss Media recently launched an interactive video terminal allowing fruit machine firms to increase the games on offer on one device and users to continue gambling when they leave the arcade, from their PC or mobile.

Leisure Link is the UK's largest amusement machine provider with 90,000 terminals in 30,000 locations.

BT explores slower ADSL in search for long-range broadband
17:46 Wednesday 19th February 2003
Graeme Wearden


Is your house located too far from the local exchange for 512Kbps broadband to work? BT is working on a possible solution
BT is examining the possibility of offering a 256Kbps ADSL product that would extend the reach of broadband across the UK.

Trials are still at an early stage, but it is possible that this product could help to close Britain's broadband divide. A significant proportion of homes are located too far from their local exchange for BT's current consumer broadband product -- which runs at 512Kbps -- to work, because of technical limitations.



A slower ADSL product could be commercially viable if it works well enough over a longer distance, BT hopes.

edited

19 Feb 2003 17:04 GMT

BT seeks to calm on India plan after strike threat

LONDON, Feb 19 (Reuters) - BT Group Plc BT.L , Britain's former telecoms monopoly, sought to reassure employees on Wednesday after strike threats from union officials who say BT plans to move 700 call centre jobs to India.
BT, which has been forced to cut costs to boost profits despite stagnant revenue growth, said no call centres would be shut down in Britain if it decided to move some work abroad.

"In line with sensible business practice, we will always review our operations to help us provide our customers with the best standard of service at the most competitive cost," the company said in a statement.

Jeannie Drake, director general of the Communication Workers Union, has written to 3,500 BT workers to say the union would resist "by all means possible" the move of jobs out of the UK.

I repeat my earlier comments that I am not over concerned on the pensions front and think the market is wrong to over sell

ains



BT plays down pension concerns

IAIN DEY BUSINESS CORRESPONDENT Scotsman


BTS FINANCE director insisted yesterday that he was not overly concerned by the 1.5 billion deficit in the firms pension fund, despite no imminent prospect of a stock market recovery.

Scot Ian Livingston, in Edinburgh to brief investors on BTs full-year results, claimed the methods of calculating pension fund values has led to a degree of "misinformation" over the true state of the fund.

He also insisted that BT was more than doing its fair share to increase broadband internet access in Scotland.

Livingston told The Scotsman: "While the pension deficit has got worse, it hasnt got dramatically worse. The critical thing is that although the market has fallen, the cash-flow into the fund hasnt changed dramatically. Dividends, rentals from property and that sort of thing havent really changed."

He added: "Between 1996 and 1999, our fund went from a small surplus to a small deficit, despite the fact that the FTSE went from around 4,000 to around 6,900. But many of the companies who were driving up the market were dotcoms, which didnt pay a dividend. Since the market has fallen, many people think Oh well the deficit must be much bigger now. But no."

The BT pension deficit has swelled from 200 million in March 2000 to between 1 billion and 1.5 billion, although some analysts have claimed the company is attempting to understate the extent of the problem. BT is now injecting an extra 200 million a year to cover the deficit.

In Scotland, Livingston said BT was continuing to upgrade exchanges to broadband status, at a cost of up 500,000, wherever there is sufficient demand.

Ten Scottish exchanges - Culloden, Kilsyth, Helensburgh, Newton Mearns, Cambuslang, Ardrossan, Bathgate, Largs plus one exchange in Irvine and another in Aberdeen - will be upgraded in the next few weeks.

Livingston said: "The problem is not supply, its demand. If the demand is there, well build."

He added: "If people want an infrastructure that they could be proud of, we need the government and everyone else to do it with us."

moving up with the market intraday ....



Jane Wakefield
BBC News Online technology staff


BT Retail's Chief Executive Pierre Danon shares his vision for the future of broadband in the UK and points out where the old BT went wrong

BT spent millions on advertising broadband
Getting people to pay for a raft of new services will be the next stage in BT's broadband strategy, as the telecoms giant tries to persuade people to abandon dial-up modems in favour of fast net connections.

In an interview with BBC News Online, head of BT Retail Pierre Danon put content rather than increased bandwidth at the top of the company's agenda.

He acknowledged that the UK net audience is unlikely to increase much beyond 50% of the population.

Instead the real challenge for broadband providers will be in persuading those with dial-up connections to make the switch.

BT is hoping to tempt consumers by offering services such as 24-hour home surveillance and educational content, offering parents access to the curriculum materials in return for a small monthly fee.

Net market

In countries such as Korea, where 60% of its population use broadband, operators have instead opted for more bandwidth, hoping that services will follow.

But it is vital to create such a marketplace on the net, said Mr Danon.

"The real battleground will be over how much people are willing to pay. Most of the internet today is free and the battle of the future will be on what is not free," he said.

Despite seeing content rather than speed as the way forward, BT is determined to distant itself from being a content provider, setting up deals with firms such as Yahoo instead.

Mr Danon is scathing of attempts to lump content and access together.

"AOL Time Warner said access and content needed to be together and it is a failure," he said.

Content dilemma

BT is constantly scotching rumours that it is interested in developing content itself, describing itself as the plumber of the internet, more interested in pipes than Harry Potter.


15 months ago the UK was the last country in the world on broadband, nobody was taking it. BT was going through disaster

Pierre Danon, BT
So what is the future for BT Openworld, the ISP which offers both dial-up and broadband access and content?

Mr Danon plays up Openworld's role as a small business ISP, admitting that it is not the consumer business that is the most successful.

"On the consumer side I personally have a view that it will be difficult to really do content because there are companies like Yahoo, MSN and AOL already doing that well," he said.

"BT Openworld will not be a content provider or producer but will put content together for customers," he said.

BT's controversial product, BT Broadband, which offers people a no-frills net connection with no webspace or e-mail address is seen by Mr Danon as the way forward, offering users a launch pad for shopping for various services on the net.

He is convinced that BT will hit its target of having half a million customers to the no-frills service by the middle of the year, although with just 100,000 so far signed up it might have its work cut out.

BT in chaos

Other ISPs have been incensed by the product, which they say offers BT an unfair advantage in the market.

Mr Danon insists BT is breaking no regulatory law with its no-frills product although he admits that Oftel's regulation has been "lighter".

He sees the no frills product as a breakthrough for a company whose broadband strategy was floundering.

"15 months ago the UK was the last country in the world on broadband, nobody was taking it. BT was going through disaster," he admits.

Efforts by the regulator to limit BT's dominance of the market did nothing to help.

"By forbidding BT to enter this market, the only thing that was done was to weaken the UK," he said.

Rather than complain he thinks other ISPs should be grateful for the broadband momentum BT has kick-started.

"Overall other ISPs are benefiting because as soon as we entered the market with an advertising campaign the business for everyone exploded, including AOL and Freeserve," he said.

Vanguard of change

The company was afraid of new technology and ashamed of its legacy

Pierre Danon, BT
BT itself looks healthier than in the recent past. The latest quarterly results showed a 37% increase in profits and a further 195m shaved off its infamous debt.

It has been a much publicised struggle to transform BT from out-of-date behemoth, scathing of new technology to a forward-thinking company.

Mr Danon joined the company in October 2000 and feels he, in partnership with chief executive Ben Verwaayen, has been at the vanguard of change.

"Ben and I are movement people. You don't win by conservatism," he said.

By contrast, two years ago BT was between a rock and a hard place, he said.

"The company was afraid of new technology and ashamed of its legacy."

"Ben came along as an outsider and said 'Guys you have it all wrong, broadband is the future and you have to take risks and invest'" he said.

Now Mr Danon says BT is in a more contented place, happier to embrace new net technology while at the same time proud of its voice business.

Intel and Virgin join BT as shareholders in Broadreach Networks
20 February 2003 11:27
By Staff
Broadreach Networks announced that Intel Capital and Virgin have joined BT Group as investors in the company. The investment round, led by VCF Partners, also attracted funds under the management of VCF, Yorkshire Fund Managers and Generics Asset Management. Financial details of the investment have not been disclosed.

Broadreach is a provider of broadband Internet access for users on the move, through both fixed-point terminals and, wireless local area networks (WLAN) access zones in public locations. It is backed by British Telecommunications, a broadband access provider in the UK. Broadreach, formerly known as Womba Telecom, has a network of over 350 terminals in 37 locations. Womba was formed in May 2000, as a spinout from Arthur D Little, the international management consultancy firm known for its specialization in communications technologies. Broadreachs network includes a range of blue chip companies such as Virgin Megastores, LA Fitness and EAT/Railtrack.

hmmmmmmmm ..... currently 163.5p up with the market and sector



LEHMAN CUTS BT TARGET

Investment bank Lehman Brothers has cut its share price target for BT Group BT.L to 200 pence from 245p, retaining its "underweight" rating on the stock.

Lincolnshire gets broadband boost

London, February 20 2003, (netimperative)



by Richard Agnew

Lincolnshire County Council has received a 7m grant from the European Union to subsidise broadband services for 3,000 rural businesses in the county.


The grant, reaped from the European Regional Development Fund, will be used to help firms pay for high-speed services and attract broadband providers, which have so far shown a reluctance to invest in infrastructure to serve many rural areas.

The council, which has itself put a further 7m into the project, also hopes to attract technology companies to the county and to improve internet links for residential users.

It will start taking applications for subsidies from businesses later this year, and hopes to offer further funding to support take-up of IT applications once the infrastructure is in place.

The project will expand on the county's existing scheme, NETLinc, which has connected around 450 schools and public sites in the area under the Government's National Grid for Learning initiative.

The new project mirrors similar public-private partnerships that have been set up to aid broadband roll out in non-metropolitan areas across the country.

One such scheme, the ActNow project in Cornwall, recently expanded after signing up 2,500 small businesses in the county in its first nine months.

Im afraid 150 is looking highly possible or even lower i have order for 145 on this stock as with war poss and markets down across the board generely and with the pension probs , also under threat from competion with cable especialy if telewest/ntl can get their act together ie debt ,the chart does not bode well either

Yes, looks as if you're barking up the wrong tree with this one, Ainsoph.

By the way, the reason I said the equity portion of the pension fund had almost certainly underperformed the market was simply that in any year 75% of fund managers do underperform their benchmarks. For the same reason, it's likely that the bond portion has underperformed the bond market and so on.

maybe ..... have added a few more and averaging around 166p ..... my 3rd biggest holding as of today .... they are still favoured by natwest in their latest review - within the sector where they are neutral on the sector.


I would expect them to start outperforming any time soon - Oftel and the pension thingy has had a more adverse effect than warrants but has allowed me to accumulate a few at bargain prices.


ains

BT rejects fixed wireless broadband plan
By Sarah Arnott [20-02-2003]

Government's 3.4GHz auction doomed to failure, say suppliers
Plans to auction wireless licences for broadband communications are in danger of becoming a fiasco.
The Department of Trade & Industry's (DTI's) auction of 15 regional licences to use the 3.4GHz spectrum will go ahead in May.

The government hopes that the new frequency will fill the gaps in Broadband Britain's costly fixed-line infrastructure.

But BT, which analyst Ovum touted as one of the most likely bidders, isn't interested. Pierre Danon, chief executive at BT Retail, described the government's policy as "stupid".

Talking exclusively to vnunet.com's sister title Computing, Danon added: "We warned the government very early that it was stupid to do 15 bids. We are certainly not bidding."

Supplier body Intellect also warned that the sale may not attract any bidders and analyst Ovum said smaller ISPs would also shun the auctions despite the low reserve prices set because of the cost of rolling out services.

The last attempt to sell off wireless licences was for the 28GHz spectrum in 2000, but only 30 per cent of the licences were sold and the third round of auctions is still going on.

Suppliers are wary of auctions because of the higher costs involved, explained Graham Macdonald, senior radio executive at Intellect.

"I am concerned that we will have a repeat of the 28GHz situation with 3.4GHz," he said.

The 15-licence model also contradicts government commitments to Broadband Britain because suppliers will only be interested in licences covering high-population areas guaranteeing a return on investment, according to Macdonald.

A spokeswoman for the DTI said: "The decision to have 15 licences is the result of more than two years of consultation, and that was the choice that came out of the process."

Comment: BT offers no SDSL guarantees
Martin Courtney, IT Week [14-02-2003]

edited

The prospect of cheaper 2Mbit/s wide area network (WAN) connections becoming more widely available in the UK is good news for IT managers. But unless BT backs up its wholesale Symmetric DSL (SDSL) bandwidth with service level agreements (SLAs) - stipulating service guarantees for reliability, and compensation in the event of failure - third-party providers might find corporates reluctant to sign up for their SDSL services. Not that this would be a total disaster for BT, which makes a lot of money from the leased line services that SDSL links threaten to replace