BT reorganizes BT Retail into two groups

BT says it will split its BT Retail arm into a pair of separate businesses. BT Consumer and BT Business will begin operations this September. The British Tier 1 service provider believes the move will both advance its broadband consumer strategy as well as its marketing to business customers.

BT Retail currently has four units: BT Consumer, BT Business (which markets to small and medium enterprises), BT Enterprises (which itself consists of several groups, including BT Conferencing, BT Payphones, BT Directories, BT Fleet, BT Wi-fi, BT Redcare, BT Expedite and Fresca, and BT Tikit), and BT Ireland.

BT Enterprises and BT Ireland will merge with BT Business to form the new BT Business division. BT Wi-fi and the consumer part of BT Ireland will transfer to BT Consumer.

John Petter, currently managing director of the Consumer unit within BT Retail, will assume the CEO title for BT Consumer. The CEO of BT Business will be Graham Sutherland, currently managing director of the Business unit within BT Retail. Both will continue to report to Gavin Patterson as Patterson moves from CEO of BT Retail to take over for Ian Livingston as BT Group Chief Executive in September. Petter and Sutherland will join BT’s Operating Committee on September 1.

“BT Retail has delivered well for many years now contributing strong profits to the group. It is time however for the business to be split in two given the intensely competitive nature of the consumer market and our strong ambitions in the business space,” said Patterson. “John and Graham are excellent leaders and I have every confidence they will take the fight to the competition and help BT to grow in the future.”

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