Guide To 21st Century Network

Since the first customers were connected to BT’s new 21CN in 2006 the £multi-billion project to upgrade the entire UK network is progressively developing towards its goal of positioning the UK at the forefront of modern communications.

BT sees huge revenue and growth potential in new wave businesses - ICT, mobility and broadband - both for itself and for its wholesale customers.

Taking advantage of this opportunity is particularly important at a time when the industry is facing significant challenges. Over time, Voice over IP (VoIP) will increasingly replace circuit-switched communications as the preferred method of communication. And this poses a very significant threat to the business models and strategies of the telecommunications operators, BT included. In a sense, these challenges are a continuation of the tremendous price pressure that the industry has experienced. For example, in the last 10 years international traffic into and out of the United States has quadrupled, whilst the revenues associated have fallen from $11 billion to $8 billion - a proportional drop in revenue of 80 per cent in 10 years.

For former incumbent network operators such as BT, devising a direction for the IP future which is profitable and will sustain growth is the critical strategic challenge. Many operators have decided to minimise outgoings, keep their heads down, and see what happens. The danger is that with IT companies well positioned to succeed in this environment, traditional telecommunications companies could soon find themselves providing commoditised transport services. The intelligence, and therefore value, would be created and located outside the network.