Gavin Patterson has his work cut out to restore order and trust in the U.K. incumbent's enterprise arm. Again.
I'll start off this week's Friday Review by conceding that the headline is perhaps a bit harsh on BT; it overlooks the progress the U.K. incumbent has made since 2008 in modernising its consumer unit by growing its TV business and buying its way back into mobile with EE. More later about how that's all going.
This week's revelations about BT Italy though, coupled with the telco's sizeable pension deficit, and uncertainty about corporate and public sector spending, certainly were reminiscent of the difficulties BT faced in 2008.
The company on Tuesday revealed that the extent of improper practices at its Italian arm was much bigger than first thought, leading BT to increase the writedown in the value of BT Italy to £530 million (€613.8 million) from £145 million in October. BT also lowered its revenue and earnings outlook for the rest of this financial year and for next year too.
"The problem is clearly much bigger than Italy," said David Molony, practice leader, network and cloud services, enterprise, at Ovum.
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