Tag: Gavin Patterson

  • BT to invest billions more on Fibre, 4G and customer Service

    BT to invest billions more on Fibre, 4G and customer Service

    MUMBAI: BT announced a further wave of investment to help the UK remain the leading digital nation in the G20. Its Openreach and EE businesses will between them spend around six billion pounds in capital expenditure over the next three years in the first phase of a plan to extend superfast broadband and 4G coverage beyond 95 per cent of the country by 2020.

    Ultrafast broadband will be deployed to a minimum of ten million homes and businesses in the same period, subject to regulatory support, with an ambition to reach twelve million. There will be an increased focus on Fibre to the Premises (FTTP) technology within this plan with the aim being to reach two million premises with the technology, mainly in new housing developments, high streets and business parks.

    Customer service will be another area of focus with the company revealing a series of new initiatives to better meet the evolving needs of its customers.

    BT Group Chief Executive Gavin Patterson said: “The UK is a digital leader today and it is vital that it remains one in the future. That is why we are announcing a further six billion pounds of investment in our UK networks, subject to regulatory certainty. 

    “Networks require money and a lot of it. Virgin and BT have both pledged to invest and we will now see if others follow our lead. Infrastructure competition is good for the UK and so is the current Openreach model whereby others can piggyback on our investment should they want to.

    “G.fast is an important technology that will enable us to deploy ultrafast broadband at pace and to as many homes as possible. Customers want their broadband to be affordable as well as fast and we will be able to do that using G.fast. FTTP will also play a bigger role going forward and I believe it is particularly well suited to those businesses who may need speeds of up to 1Gbps. My ambition is to roll it out to two million premises and our trials give me confidence we will.

    “Customer expectations are increasing all the time and we need to work hard to meet those new demands. That is why contact centre work is being returned to the UK and why Openreach is aiming to halve the number of missed appointments within a year. Customers want higher standards of service and we are determined to provide them with just that.”

    Better Service

    The internet has become increasingly central to people’s lives and BT today said it would respond with further investment in customer service across the company. A range of new initiatives were unveiled today with BT Consumer set to reduce the standard time to fix line faults by 24 hours as well as pledging to handle 90 per cent of its customers’ calls in the UK by March 2017. These new commitments follow the recent announcement that EE will handle 100 per cent of its customers’ calls in the UK by the end of this year.

    Openreach also gave new service commitments with CEO Clive Selley telling his communication provider customers it will deliver ‘better service, broader coverage and faster speeds’. The business will hire 1,000 new engineers this year and provide further multi skill training for engineers so there is more flexibility in the work they can do for customers.

    Openreach is also aiming to halve missed appointments to two and a half per cent within a year with an ambition to reduce them even further after that. A case management service team is also being established to step in and resolve problems for customers who have experienced two or more missed or unsuccessful appointments. The provision of dedicated business lines known as Ethernet will also increase by 20 per cent year on year.

    Broader Coverage

    The UK is the leading digital economy in the G20  with the highest superfast broadband coverage and take up in the EU ‘big five’. More than ninety per cent of UK premises can access superfast broadband across all fixed networks and that is set to rise to 95 per cent by the end of 2017. Meanwhile, more than 15 million people are using 4G via the EE network, the highest number for any operator in Europe.

    BT’s next wave of investment will help Openreach take UK superfast broadband coverage beyond 95 per cent and the business also stands ready to address slow speeds in the final few per cent of the country should there be regulatory support for its plans. Long Reach VDSL has been identified as a potential solution and Open reach is set to run technical trials in the coming months.

    EE meanwhile has said that it will extend its geographic 4G footprint from around 60 per cent today to 95 per cent by 2020. These parallel plans will ensure the UK is one of the best served countries in the world when it comes to superfast fixed and mobile services.

    Faster Speeds

    Ultrafast broadband will be a major area of focus for Open reach which today said it has an ambition to reach twelve million premises with ultrafast services by 2020, two million more than previously announced. The business has the largest FTTP network in the UK and it has been conducting further trials of this technology to prove it can reduce the cost of deployment, improve the customer experience and make it quicker to install. The trials are going well and the business believes it may be able to pass two million premises with this technology by 2020 helping to take overall ultrafast availability to twelve million.

    FTTP is likely to be deployed to hundreds of thousands of SMEs in high streets and business parks – should there be demand – providing them with a service that offers speeds of up to 1Gbps without the need for a dedicated business grade line. The updated service will be developed by Openreach in the coming months taking the views of its communication provider customers into account.

    FTTP will also be deployed to consumers in new property developments with Openreach announcing it would deploy the service for free at sites where there are more than 100 homes. It may also play a role in serving apartment blocks and some rural areas where it may provide the most appropriate solution.

    Whilst some consumers will receive their ultrafast broadband via FTTP, most will receive it via G.fast, a technology which transforms the speeds customers can receive over a mix of fibre and copper. Customers taking part in the trials are currently receiving speeds of up to 300Mbps and these will reach up to 500Mbps in the next few years as the technology is deployed. Laboratory tests of XG-FAST, a future variant, have also shown that speeds of more than 5Gbps are possible over short copper lines demonstrating that copper has a role to play for many years yet.

  • BT to invest billions more on Fibre, 4G and customer Service

    BT to invest billions more on Fibre, 4G and customer Service

    MUMBAI: BT announced a further wave of investment to help the UK remain the leading digital nation in the G20. Its Openreach and EE businesses will between them spend around six billion pounds in capital expenditure over the next three years in the first phase of a plan to extend superfast broadband and 4G coverage beyond 95 per cent of the country by 2020.

    Ultrafast broadband will be deployed to a minimum of ten million homes and businesses in the same period, subject to regulatory support, with an ambition to reach twelve million. There will be an increased focus on Fibre to the Premises (FTTP) technology within this plan with the aim being to reach two million premises with the technology, mainly in new housing developments, high streets and business parks.

    Customer service will be another area of focus with the company revealing a series of new initiatives to better meet the evolving needs of its customers.

    BT Group Chief Executive Gavin Patterson said: “The UK is a digital leader today and it is vital that it remains one in the future. That is why we are announcing a further six billion pounds of investment in our UK networks, subject to regulatory certainty. 

    “Networks require money and a lot of it. Virgin and BT have both pledged to invest and we will now see if others follow our lead. Infrastructure competition is good for the UK and so is the current Openreach model whereby others can piggyback on our investment should they want to.

    “G.fast is an important technology that will enable us to deploy ultrafast broadband at pace and to as many homes as possible. Customers want their broadband to be affordable as well as fast and we will be able to do that using G.fast. FTTP will also play a bigger role going forward and I believe it is particularly well suited to those businesses who may need speeds of up to 1Gbps. My ambition is to roll it out to two million premises and our trials give me confidence we will.

    “Customer expectations are increasing all the time and we need to work hard to meet those new demands. That is why contact centre work is being returned to the UK and why Openreach is aiming to halve the number of missed appointments within a year. Customers want higher standards of service and we are determined to provide them with just that.”

    Better Service

    The internet has become increasingly central to people’s lives and BT today said it would respond with further investment in customer service across the company. A range of new initiatives were unveiled today with BT Consumer set to reduce the standard time to fix line faults by 24 hours as well as pledging to handle 90 per cent of its customers’ calls in the UK by March 2017. These new commitments follow the recent announcement that EE will handle 100 per cent of its customers’ calls in the UK by the end of this year.

    Openreach also gave new service commitments with CEO Clive Selley telling his communication provider customers it will deliver ‘better service, broader coverage and faster speeds’. The business will hire 1,000 new engineers this year and provide further multi skill training for engineers so there is more flexibility in the work they can do for customers.

    Openreach is also aiming to halve missed appointments to two and a half per cent within a year with an ambition to reduce them even further after that. A case management service team is also being established to step in and resolve problems for customers who have experienced two or more missed or unsuccessful appointments. The provision of dedicated business lines known as Ethernet will also increase by 20 per cent year on year.

    Broader Coverage

    The UK is the leading digital economy in the G20  with the highest superfast broadband coverage and take up in the EU ‘big five’. More than ninety per cent of UK premises can access superfast broadband across all fixed networks and that is set to rise to 95 per cent by the end of 2017. Meanwhile, more than 15 million people are using 4G via the EE network, the highest number for any operator in Europe.

    BT’s next wave of investment will help Openreach take UK superfast broadband coverage beyond 95 per cent and the business also stands ready to address slow speeds in the final few per cent of the country should there be regulatory support for its plans. Long Reach VDSL has been identified as a potential solution and Open reach is set to run technical trials in the coming months.

    EE meanwhile has said that it will extend its geographic 4G footprint from around 60 per cent today to 95 per cent by 2020. These parallel plans will ensure the UK is one of the best served countries in the world when it comes to superfast fixed and mobile services.

    Faster Speeds

    Ultrafast broadband will be a major area of focus for Open reach which today said it has an ambition to reach twelve million premises with ultrafast services by 2020, two million more than previously announced. The business has the largest FTTP network in the UK and it has been conducting further trials of this technology to prove it can reduce the cost of deployment, improve the customer experience and make it quicker to install. The trials are going well and the business believes it may be able to pass two million premises with this technology by 2020 helping to take overall ultrafast availability to twelve million.

    FTTP is likely to be deployed to hundreds of thousands of SMEs in high streets and business parks – should there be demand – providing them with a service that offers speeds of up to 1Gbps without the need for a dedicated business grade line. The updated service will be developed by Openreach in the coming months taking the views of its communication provider customers into account.

    FTTP will also be deployed to consumers in new property developments with Openreach announcing it would deploy the service for free at sites where there are more than 100 homes. It may also play a role in serving apartment blocks and some rural areas where it may provide the most appropriate solution.

    Whilst some consumers will receive their ultrafast broadband via FTTP, most will receive it via G.fast, a technology which transforms the speeds customers can receive over a mix of fibre and copper. Customers taking part in the trials are currently receiving speeds of up to 300Mbps and these will reach up to 500Mbps in the next few years as the technology is deployed. Laboratory tests of XG-FAST, a future variant, have also shown that speeds of more than 5Gbps are possible over short copper lines demonstrating that copper has a role to play for many years yet.

  • Q3-16: Affiliate & Advertising revenues prop 21st Century Fox revenue 5.7 percent

    Q3-16: Affiliate & Advertising revenues prop 21st Century Fox revenue 5.7 percent

    BENGALURU:  Rupert Murdoch’s Twenty-First Century Fox Inc. ( 21st Century Fox) reported 5.7 percent year-on-year (y-o-y) growth in adjusted total revenue (revenue) for its third quarter ended 31 March 2016 (Q3-16, current quarter). 21st Century Fox reported revenue of $7,228 million in the current quarter as compared to $6,840 million in the corresponding year ago quarter. This revenue growth reflects higher affiliate and advertising revenues at both the Cable Network Programming and Television segments partially offset by lower television production revenues at the Filmed Entertainment segment. The adverse impact of foreign exchange rates in the current quarter impacted revenue growth by $204 million, or 3 percent in total.

    Affiliates fees in Q3-16 increased 7.3 percent y-o-y to $2,939 million as compared to $2,740 million. Advertising revenue in the current quarter increased 3.6 percent to $1,907 million as compared to $1,840 million in the corresponding year ago quarter. Content revenue in Q3-16 increased 4.5 percent y-o-y to $2,288 million to $2,189 million. ‘Other’ revenue in Q3-16 increased 32.4 percent y-o-y to $94 million from $71 million.

    Quarterly total segment operating income before depreciation and amortization (OIBDA) of $1,881 million increased $204 million, or 12.2 percent, from the $1,677 million of quarterly OIBDA reported in the prior year. The increase principally reflects double digit OIBDA growth at each of the company’s Filmed Entertainment and Cable Network Programming segments partially offset by lower contributions from the Television segment. The adverse impact of foreign exchange rates impacted OIBDA growth by $110 million, or 7 percent.

    21st Century Fox reported quarterly income from continuing operations attributable to stockholders of $844 million ($0.44 per share), compared with $990 million ($0.47 per share) in the prior year. Excluding the net income effects of Other, net and gains and other adjustments related to Sky plc and Endemol Shine Group included in equity losses from affiliates, adjusted quarterly earnings per share from continuing operations attributable to stockholders was $0.47 compared with the adjusted year-ago result of $0.42.

    21st Century Fox executive chairmen Rupert and Lachlan Murdoch said: “We delivered significant revenue and earnings growth in the quarter on the strength of gains in affiliate and advertising revenues across our domestic and international cable portfolios as well as at our television segment. Whether it was Fox News outranking all of basic cable for the first time, FX delivering the year’s most watched new cable show with The People v. O.J. Simpson: American Crime Story, or Star Sports remaking televised sports in India, the unique appeal of our industry leading brands and premium content has never been clearer. This strength extended to our film studio, which broke global box office records and expanded a global franchise with Deadpool, while delivering its second strongest quarterly earnings ever. The demonstrated value of our brands and our outstanding creative content will drive our businesses forward in both the existing and evolving media marketplace.”

    Cable Networking Programming (CNP)

    CNP revenue in Q3-16 increased 9.8 percent y-o-y to $3,941 million as compared to $3,590 million. Cable Network Programming quarterly segment OIBDA increased 11.5 percent to $1,375 million driven by a 10 percent revenue increase on higher affiliate revenues and low double digit advertising revenue growth, partially offset by a 9 percent increase in expenses.

    Domestic affiliate revenue increased 7 percent reflecting sustained growth at FX Networks and FS1. Domestic advertising revenue grew 17 percent over the corresponding prior year quarter reflecting higher ratings and pricing at Fox News and a higher number of National Basketball Association games played in the current quarter at the Regional Sports Networks as well as the impact from the consolidation of the National Geographic non-channels businesses. Domestic OIBDA contributions increased 7 percent over the Q3-15 led by higher contributions from FS1, Fox News and FX Networks.

    International affiliate revenue increased 6 percent driven by strong local currency growth at the Star India and Fox Networks Group International (FNG International) channels, formally known as Fox International Channels, or FIC, which was partially offset by a negative 14 percent impact from the strengthened US dollar. International advertising revenue increased 6 percent as local currency growth at the Star India and FNG International entertainment channels was partially offset by a negative 11 percent impact from the strengthened US dollar. Quarterly OIBDA at the international cable channels increased 67 percent reflecting strong growth at the Star India channels due to both higher affiliate and advertising revenues at the entertainment channels and lower rights costs at the sports channels due to the absence of the prior year broadcast of the ICC Cricket World Cup.

    Television

    Television revenue increased 5 percent y-o-y in Q3-16 to $1,298 million from $1,237 million in Q3-15. Television generated quarterly segment OIBDA in Q3-16 of $125 million, a $16 million decrease from the $141 million reported in Q3-15. Quarterly segment revenues were 5 percent higher than in Q1-15 due to strong retransmission consent revenue growth and higher advertising revenues led by higher political spending at the TV stations. The decrease in segment OIBDA was driven by higher contractual sports programming costs at the Fox Broadcast Network that more than offset the higher revenues.

    Filmed Entertainment

    Filmed Entertainment segment reported a 2.8 percent y-o-y decline in revenue to $2,321 million in Q3-16 as compared to $2,389 million in Q1-15. Filmed Entertainment generated quarterly segment OIBDA of $470 million, an increase of $88 million, or 23 percent, from the $382 million reported in the same period a year-ago. The OIBDA increase was driven by higher contributions from the film studio, led by the record-breaking worldwide theatrical release of Deadpool, which has grossed over $760 million in worldwide box office to date and is the top grossing R-rated movie ever, partially offset by lower television production results reflecting the absence of the network delivery of Glee, which aired its final season on the Fox Broadcast Network last year. Q3-16 segment revenues decreased primarily reflecting lower worldwide home entertainment and television production revenues and a 3 percent negative impact from foreign exchange rate fluctuations, partially offset by higher worldwide theatrical revenues, led by the theatrical release of Deadpool. Foreign exchange fluctuations adversely impacted segment OIBDA growth by 13 percent.

     

  • Q3-16: Affiliate & Advertising revenues prop 21st Century Fox revenue 5.7 percent

    Q3-16: Affiliate & Advertising revenues prop 21st Century Fox revenue 5.7 percent

    BENGALURU:  Rupert Murdoch’s Twenty-First Century Fox Inc. ( 21st Century Fox) reported 5.7 percent year-on-year (y-o-y) growth in adjusted total revenue (revenue) for its third quarter ended 31 March 2016 (Q3-16, current quarter). 21st Century Fox reported revenue of $7,228 million in the current quarter as compared to $6,840 million in the corresponding year ago quarter. This revenue growth reflects higher affiliate and advertising revenues at both the Cable Network Programming and Television segments partially offset by lower television production revenues at the Filmed Entertainment segment. The adverse impact of foreign exchange rates in the current quarter impacted revenue growth by $204 million, or 3 percent in total.

    Affiliates fees in Q3-16 increased 7.3 percent y-o-y to $2,939 million as compared to $2,740 million. Advertising revenue in the current quarter increased 3.6 percent to $1,907 million as compared to $1,840 million in the corresponding year ago quarter. Content revenue in Q3-16 increased 4.5 percent y-o-y to $2,288 million to $2,189 million. ‘Other’ revenue in Q3-16 increased 32.4 percent y-o-y to $94 million from $71 million.

    Quarterly total segment operating income before depreciation and amortization (OIBDA) of $1,881 million increased $204 million, or 12.2 percent, from the $1,677 million of quarterly OIBDA reported in the prior year. The increase principally reflects double digit OIBDA growth at each of the company’s Filmed Entertainment and Cable Network Programming segments partially offset by lower contributions from the Television segment. The adverse impact of foreign exchange rates impacted OIBDA growth by $110 million, or 7 percent.

    21st Century Fox reported quarterly income from continuing operations attributable to stockholders of $844 million ($0.44 per share), compared with $990 million ($0.47 per share) in the prior year. Excluding the net income effects of Other, net and gains and other adjustments related to Sky plc and Endemol Shine Group included in equity losses from affiliates, adjusted quarterly earnings per share from continuing operations attributable to stockholders was $0.47 compared with the adjusted year-ago result of $0.42.

    21st Century Fox executive chairmen Rupert and Lachlan Murdoch said: “We delivered significant revenue and earnings growth in the quarter on the strength of gains in affiliate and advertising revenues across our domestic and international cable portfolios as well as at our television segment. Whether it was Fox News outranking all of basic cable for the first time, FX delivering the year’s most watched new cable show with The People v. O.J. Simpson: American Crime Story, or Star Sports remaking televised sports in India, the unique appeal of our industry leading brands and premium content has never been clearer. This strength extended to our film studio, which broke global box office records and expanded a global franchise with Deadpool, while delivering its second strongest quarterly earnings ever. The demonstrated value of our brands and our outstanding creative content will drive our businesses forward in both the existing and evolving media marketplace.”

    Cable Networking Programming (CNP)

    CNP revenue in Q3-16 increased 9.8 percent y-o-y to $3,941 million as compared to $3,590 million. Cable Network Programming quarterly segment OIBDA increased 11.5 percent to $1,375 million driven by a 10 percent revenue increase on higher affiliate revenues and low double digit advertising revenue growth, partially offset by a 9 percent increase in expenses.

    Domestic affiliate revenue increased 7 percent reflecting sustained growth at FX Networks and FS1. Domestic advertising revenue grew 17 percent over the corresponding prior year quarter reflecting higher ratings and pricing at Fox News and a higher number of National Basketball Association games played in the current quarter at the Regional Sports Networks as well as the impact from the consolidation of the National Geographic non-channels businesses. Domestic OIBDA contributions increased 7 percent over the Q3-15 led by higher contributions from FS1, Fox News and FX Networks.

    International affiliate revenue increased 6 percent driven by strong local currency growth at the Star India and Fox Networks Group International (FNG International) channels, formally known as Fox International Channels, or FIC, which was partially offset by a negative 14 percent impact from the strengthened US dollar. International advertising revenue increased 6 percent as local currency growth at the Star India and FNG International entertainment channels was partially offset by a negative 11 percent impact from the strengthened US dollar. Quarterly OIBDA at the international cable channels increased 67 percent reflecting strong growth at the Star India channels due to both higher affiliate and advertising revenues at the entertainment channels and lower rights costs at the sports channels due to the absence of the prior year broadcast of the ICC Cricket World Cup.

    Television

    Television revenue increased 5 percent y-o-y in Q3-16 to $1,298 million from $1,237 million in Q3-15. Television generated quarterly segment OIBDA in Q3-16 of $125 million, a $16 million decrease from the $141 million reported in Q3-15. Quarterly segment revenues were 5 percent higher than in Q1-15 due to strong retransmission consent revenue growth and higher advertising revenues led by higher political spending at the TV stations. The decrease in segment OIBDA was driven by higher contractual sports programming costs at the Fox Broadcast Network that more than offset the higher revenues.

    Filmed Entertainment

    Filmed Entertainment segment reported a 2.8 percent y-o-y decline in revenue to $2,321 million in Q3-16 as compared to $2,389 million in Q1-15. Filmed Entertainment generated quarterly segment OIBDA of $470 million, an increase of $88 million, or 23 percent, from the $382 million reported in the same period a year-ago. The OIBDA increase was driven by higher contributions from the film studio, led by the record-breaking worldwide theatrical release of Deadpool, which has grossed over $760 million in worldwide box office to date and is the top grossing R-rated movie ever, partially offset by lower television production results reflecting the absence of the network delivery of Glee, which aired its final season on the Fox Broadcast Network last year. Q3-16 segment revenues decreased primarily reflecting lower worldwide home entertainment and television production revenues and a 3 percent negative impact from foreign exchange rate fluctuations, partially offset by higher worldwide theatrical revenues, led by the theatrical release of Deadpool. Foreign exchange fluctuations adversely impacted segment OIBDA growth by 13 percent.