Simpler network 'could save BT €1.5bn a year'
BT today mapped out plans to transform its network in a move that could help the telecoms group achieve cost savings of up to £1bn (€1.5bn) a year.
The company said it planned to switch voice-based customers on the existing telephone network on to the same technology used for the transfer of data.
BT said the transfer, which should largely be completed by 2008, removes duplication as it creates a single multi-service network.
Spending on the programme should be achieved within BT’s existing £3bn (€4.5bn) capital expenditure budget, while cost savings from the investment are expected to amount to £1bn (€1.5bn) a year by the 2008/09 financial year.
Paul Reynolds, chief executive of BT Wholesale, said the change – called BT’s 21st century network programme – would enable customers to access any communications service from a device at broadband speed.
He added: “This programme will drive a radical simplification of BT’s operations, including significantly lower costs and the capability to launch new services to market faster than we can today.”
Mr Reynolds placed the move among the “most important infrastructure transformation programmes” ever undertaken in the communications industry.
The first stage of the programme will focus on the bypass of the current network between two major BT centres at Cambridge and Woolwich.
An initial 1,000 customers served by local exchanges connected to those centres will then trial the new network.
BT today also announced trials to test the possible deployment of fibreoptic cable in its UK local access network.
