British Telecom Swot Analysis


  • BT (a BT Group plc subsidiary) is the UK’s lead broadband Internet provider and fixed line that:
  • Provides global telecommunication services in more than 170 countries worldwide;
  • Participates in London and New York Stock Exchange and is listed in the FTSE 100 Index;
  • Provides most British fixed-line telephones with local loop and trunk network connections, and telephone exchanges;
  • Operates more than 28 million UK telephone lines;
  • Owns largest nationwide telecom coverage and penetration;
  • On the basis of Universal Service Obligation, provides public call boxes fixed telephone lines nationwide;
  • Extends communication operations on global markets through acquisition and re-branding of the domestic and overseas businesses, specifically: BT Infonet, 2005; BT Radianz, 2006;, 2006; PlusNet plc, 2007;
  • International Network Services Inc, 2007; Comsat International, 2007; Wire One Communications, 2008; and Ribbit, 2008.
  • Invests in new Internet Protocol century network 21CN.


  • BT main weaknesses are associated with the following factors:
  • Underdevelopment of mobile business and lack of fixed-mobile convergence;
  • Lack of business strategy towards the promotion of ‘cheap voice calls’;
  • Occasional payphone problem due to BT operations;
  • General complaints about customer services provided by BT.


  • Transition to the new century network (21CN) in 2010 including the transfer of half of its customers by 2008;
  • Expansion to more profitable products and services that are less regulated;
  • Emphasis on telecommunications and IT solutions and ;
  • Extension of ‘BT Tradespace’ online service platform to serve small businesses;
  • Advancement of ‘BT Vision’ to provide high-quality broadband television services;
  • Expansion of Internet smart-phone services.
  • Expansion of services on highly-dynamic UK telecom market and internationally;
  • Contracting more overseas partners to further its global expansion;


  • Fierce competition from BT’s main rivals: Carphone Warehouse; Google; O2; Orange and Vodafone);
  • Global financial crisis;
  • Workforce and management shortages in BT core business divisions, including retail, wholesale, Openreach, and BT Global Services);
  • Overall increase of redemptions;
  • Potential risk for BT bond markets;
  • Fund management crisis with 6.6 b. slumps;
  • Operating markets liquidity;
  • Recent behavioural targeting scandal;
  • Inability to foresee the successfulness of long-term projects considering current economic fluctuations.

Source: ChinaStones -

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