BT Retail records above average complaint levels

25 January 2013




<i>BTwatch Report #240</i> <b>Extract</b>


BT Retail records above average complaint levels

Ofcom’s latest customer service satisfaction survey, conducted by research company GfK, found that BT Retail saw increasing levels of customer complaints for its landline and broadband services in the most recent quarter. Meanwhile, the telco’s pay-TV service, BT Vision, saw the number of complaints per 1, 000 customers fall, but the level of complaints still remains significantly above the sector average.

The survey, which was conducted between July and September 2012, found that BT received 0.21 complaints-per-1, 000 customers for its fixed-line services in the quarter, 0.34 complaints-per-1, 000 customers for its broadband services, and 0.23 complaints-per-1, 000 customers for its pay-TV service.

In the landline market, BT’s complaint rate was slightly above the sector average of 0.20; and the company ranked a distant second in terms of complaint numbers to rival TalkTalk, which recorded 0.39 complaints-per-1, 000 customers in the quarter.

In broadband services, BT was again behind TalkTalk, but this time only marginally (0.34 complaints-per-1, 000 compared to 0.35), and both received significantly more than the sector average of 0.24.

In pay-TV, BT was by far the most complained-about service provider, registering 0.24 complaints-per-1, 000 customers, compared to a sector average of 0.04. Despite remaining at a high level, BT’s complaint rate for pay-TV services has dropped significantly from 0.38 in Q4 2011. The sharp spike in complaints regarding the BT service was previously said to result from the comparative lack of development of the offering compared to well-established rivals, and sales and processing difficulties related to growth (BTwatch, #234).

Another customer satisfaction survey in the broadband market conducted by ISPreview.co.uk supported Ofcom’s general verdict of rising customer satisfaction, finding that 41.6% of respondents reported being “unhappy” with their internet service provider (ISP), compared to 44.5% a year previously. Of the main sources of dissatisfaction, speed ranked as the top factor, being cited by 40.2% of respondents, followed by service reliability, quoted by 17%.

[Further reference: Telecoms and Pay-TV complaints Q3 (July to September) 2012 -- Ofcom, 18 December 2012; Survey finds rising broadband ISP satisfaction but many still unhappy -- ISPreview.co.uk, 2 January 2013.]


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Report: #240
Covering: December 2012-January 2013
Published: January 2013
Next report: February 2013

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<b>Contents</b>


BTwatch Report #240 contents

1 Executive brief

4 BT Group

4 Digital Britain
4 Ofcom reports increasing uptake of fibre services
4 Widespread local availability translates to higher penetration
5 Delivery and uptake of superfast broadband in top-50 local authorities by average speed
7 Lancashire fibre project gets £3m boost
7 More BDUK contracts signed
8 Awards and Accreditations
8 BDUK funds can be clawed back if rollouts outperform
8 BT continues to see close scrutiny of fibre economics
8 EC clears new funding models, but seems committed to fibre…
9 People
9 People movement highlights
9 Digital hub projects may be revived as universal service urgency increases…
9 Technology neutrality may be compromised by commitment to fibre…
10 BT obliged to deliver more comprehensive wholesaling in BDUK areas
12 Intellectual property
12 BT maintains pursuit of patents
12 BT accused of patent opportunism
13 Regulatory
13 BT among bidders in Ofcom spectrum auction
13 Lots and reserve prices
13 Summary of available lots in Ofcom’s 2013 800MHz and 2.6GHz spectrum auction
14 Potential use of ’4G’ spectrum by BT
15 Auction may strengthen BT’s M2M position
15 Private network contracts could also be boosted
16 Slim possibility of mobile aspirations
17 Competition for fringe licences likely to be limited
17 Likely outcome is BT acquiring a new tool for existing NGA plans
18 BT ordered to repay £94.8m overcharged to rivals

21 BT Retail

21 Broadband
21 BT drops down broadband speed rankings
21 Corporate social responsibility
21 BT supports connectivity drive in NI
22 Plusnet
22 BT Infinity
22 BT fibre availability checker criticised by ASA
23 Wireless networks
23 Wi-Fi use up over Christmas and New Year
23 Customer satisfaction
23 BT records above average complaint levels
24 OTT services
24 BT throws hat in OTT ring with new SmartTalk app
25 App marks BT attempt to grab calls share back from mobile
26 BT may benefit from former rounds of VoIP fight, but threats remain
27 Pricing and tariffs
27 BT prices scrutinised as Ofcom begins fixed contract review
29 Television services
29 Additional linear channels join BT Vision
29 BT picks Sunset+Vine for sports production
30 More sport added to BT line-up

31 BT Global Services

31 Contracts
31 BT win Clarins contract
32 Awards and accreditations
32 Public sector contracts
32 Cornwall contract to proceed in trimmed-down form
33 BT predicts PSN progress in 2013
34 BT International: Americas
34 BT supports US regulatory review

35 BT Wholesale

35 Contracts
35 Rumours link O2 to renewed BT backhaul deal
37 Managed services
37 BT still in running for Yorkshire’s Digital Region Network
38 Openreach
38 Fibre
38 Openreach to pilot PCP-only connections
38 Operations
38 Openreach performance still suffering in bad weather
39 Openreach extends FTTP trials
40 Products and services
40 Openreach updates SLA and SLG
41 Openreach to update wholesale pricing in April 2013
41 Schedule of Openreach wholesale price changes

42 Index


<b>Index</b>


BTwatch Report #240 index

A

Advertising Standards Authority, 22
AOL, 12
Apple, 12, 24
AT&T, 34
Aviva, 29

B

Berg Design, 14
Berkshire County Council, 33
British Broadcasting Corporation (BBC), 14, 29
Broadband Delivery UK (BDUK), 5, 6, 7, 8, 9, 10, 15
BSkyB, 14, 18, 21, 23
- The Cloud, 23
BT Group, 4, 7, 8, 9, 12, 13, 18, 34
- BT Global Services, 15, 31, 32, 33
- – BT Assure, 31
- – BT Compute, 31
- – BT Connect, 31
- – BT International, 34
- – Spain, 32
- BT Retail, 4, 6, 21, 22, 23, 24, 27, 29, 30
- – BT Broadband, 26
- – BT Broadband Voice, 26
- – bt.com, 22
- – BT Communicator, 26
- – BT Conferencing, 34
- – BT Fusion, 25
- – BT Government, 32
- – BT Infinity, 22
- – BT Vision, 23, 27, 29
- – Connected Communities, 21
- – Humphrey, Jake, 29
- – Plusnet, 21, 22
- – SmartTalk, 24, 25, 26
- BT Wholesale, 14, 18, 22, 35, 37, 40, 41
- – Superfast Cornwall, 8
- Executives
- – Alvarez, Luis, 32
- – Coyle, Mark, 29
- – Galvin, Mike, 39
- – Green, Simon, 29, 30
- – Ingram, Duncan, 31
- – Langdale, Mark, 33
- – Livingston, Ian, 16, 27
- – Mellor, Neil, 33
- – Sciolla, Corrado, 31
- Ex-executives
- – Lavery, Kevin, 32
- – Waters, Caroline, 9
- Innovate & Design
- – Adastral Park, 12
- Niche Spectrum Ventures, 13
- Openreach, 14, 18, 22, 38, 39, 40, 41
- – Backhaul Extension Services, 18
- – EMP, 39
- – GEA-FTTC, 41
- – ISDN2, 40

C

Cambridge Consultants, 14
Cambridge TV White Space Consortium, 14
Channel 4, 29
China Mobile, 16, 17
Clarins Group, 31
Cornwall Council, 8, 32
Cornwall Development Company, 8

D

Department for Culture, Media and Sport
- BDUK, 6, 7, 8, 9, 10
Deutsche Telekom
- T-Mobile, 12, 13
Digital Britain, 4, 5, 6, 7

E

EE (Orange UK, T-Mobile UK), 13, 14, 16
Entreprise de Transport et de Distribution dEElectricité, 37
Ericsson, 16, 17
European Union, 8, 9, 10, 18
- European Commission, 7, 8, 10, 15, 37
Eurosport, 30

F

Federal Communications Commission, 34
Football Association
- Premier League, 29
France Télécom
- Orange, 13
Frost and Sullivan, 8

G

Gartner Group, 32
Google, 12, 24
- Android, 12, 24

H

Heineken, 23
Hilton Group, 23
House of Commons
- Public Accounts Committee, 8
House of Lords, 9
HTC, 12
Hutchison Whampoa
- Three Group
- – Three UK, 13
Hyde Housing Association, 31

I

International Electrotechnical Commission (IEC)
- Broadband World Forum, 8
International Paralympic Committee (IPC)
- Paralympic Games, 29

J

John Lewis, 23

K

Kyocera, 12

L

Lancashire County Council, 7
LG, 12

M

MetroPCS, 12
Microsoft
- Skype, 26
MLL Telecom, 17
Motorola, 12
MTV, 29

N

National Health Service (NHS, UK), 32, 33
NEC, 12
Netpropagate, 14
Neul, 14, 15
Nextel, 12
Nickelodeon, 29
Nokia, 14
Norfolk County Council, 7
Northumberland County Council, 6, 33

O

Ofcom, 4, 6, 8, 10, 13, 14, 17, 18, 19, 22, 23, 27
- LLU, 41
- Physical infrastructure access (PIA), 10
- Wholesale Line Rental, 41
Office of the Telecommunications Adjudicator (UK), 38, 40
- OTA2, 38
Olympic Games
- London 2012, 29, 31

P

Pantech, 12
PCCW, 17
- HKT (UK), 17
Policy Exchange, 21
Public Services Network (PSN), 33

R

Research In Motion, 12

S

Samsung, 14
Sony, 12
South Yorkshire Digital Region, 37
Spectrum Bridge, 14
Sprint, 12
Starbucks, 23
Steelhead Licensing, 12
Steepest Ascent, 14
Suffolk County Council, 7
Suffolk Technologies, 12
Sunset + Vine, 29

T

TalkTalk Telecom Group plc, 18, 19, 23
Technology
- 2G, 15
- 3G, 15, 16, 25
- ADSL, 9, 22
- ADSL2+, 9, 22
- Broadband, 4, 5, 6, 7, 8, 9, 10, 13, 14, 15, 16, 17, 21, 22, 23, 24, 37
- Ethernet, 8, 18, 19, 39
- Fibre, 4, 5, 6, 7, 8, 9, 10, 14, 15, 22, 37, 38, 39, 41
- – Fibre-to-the-cabinet (FTTC), 38
- Fibre-to-the-premises (FTTP), 39
- GSM, 15
- IP, 26
- IPTV, 29
- LLU, 18, 22
- LTE, 12, 13, 14, 16, 17
- M2M, 14, 15, 17
- Next-generation access (NGA), 17, 38
- OTT, 24, 26
- PCP, 38
- Private circuits, 18
- PSTN, 24, 26
- UMTS, 12
- VDSL, 38
- Vectoring, 9
- VoIP, 26
- Wi-Fi, 14, 16, 23, 24, 25, 26
Telefónica, 16, 35
- Telefónica Europe, 35
- – UK, 35
TTP, 14

U

UK Government, 31
University of Strathclyde, 14

V

Verizon Communications, 18, 19, 34
Viacom, 29
Virgin Media, 18, 19, 21
Vodafone, 16, 35
- Cable&Wireless Worldwide, 18, 19, 35

W

WhatsApp, 26
Which?, 22
World Communication Awards (WCA), 8

Y

YouView, 4, 29

Z

ZTE, 12


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