BT has announced increased profits and revenue thanks to broadband take-up.
Performance for the giant telco was dragged down by declines in its traditional offerings but buoyed by broadband and networked IT services.
Revenue for its fiscal first quarter reached £4.9 billion, up 3 percent from last year. Profit was up at £464 million from £374 million a year earlier.
Income from what BT calls new wave services, including mobility, broadband and networked IT services, was up 18 percent over last year, reaching £1.6 billion. Within that total, broadband revenue grew most, up 45 percent to £454 million. Networked IT revenue grew nine percent to £981 million and mobility revenue was up eight percent to £71 million. BT doesn't own a mobile network but sells services to customers via a resale agreement with a cellular operator.
Revenue from BT's traditional businesses, including fixed-line voice, dropped four percent. BT blamed regulatory intervention, competition, price reductions and technological changes for the customer shift from traditional services to the new offerings.
The drop in revenue from the traditional services is more than offset by new services, however, said chief exec Ben Verwaayen. "The new wave business is growing at twice the rate of the decline in traditional," he said.
BT continues to work on the implementation of its 21st Century Network, a project that aims to migrate all services from the existing network onto an all-IP network. Initial migration of end user lines is expected to begin later this year followed by testing and national migration is scheduled for early 2008. The new network will deliver broadband connections at up to 24Mbit/s.
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