Think Broadband: BT wants to evolve customers to be EE customers

Story from Think Broadband:

News of changes for BT consumer customers is a bit confusing as even though the news emerged a couple of days ago there is little concrete detail. It seems that the reality is that the news item published on bt.com is setting a direction that is going to play out over a number of years, rather than happening immediately. 

Why we don't think a lot is going to happen immediately is because the release has the two sentences "The BT brand will still play an important but more focused role for Consumer customers on standalone broadband and landline services." and "Nothing will change for our BT customers.". So while some coverage may be bigging up a big change for BT customers BT itself seems to be downplaying this and talking more about converged products under the EE branding. What we suspect is likely to change in the shorter term is a TUPE of BT Consumer staff to EE and phoning BT customer support may actually just be someone who works for EE (which is part of the BT Consumer of course) and is just answering as BT support or EE support depending on the phone number called. 

A NEW CHAPTER BEGINS 

This is where our new chapter begins. From today, we’re starting the preparations to make the EE brand our flagship brand for Consumer customers focusing on convergence and future services. 

While retaining much of the identity that is instantly recognisable to millions today, the new EE will evolve and stretch into new areas and be focused on convergence of networks, devices and new services beyond connectivity. 

Why EE? Well – our customers tell us that EE is synonymous with the best mobile connectivity and its popularity in the broadband market is growing steadily as we’ve driven awareness that EE’s fibre network is powered by BT. 

While EE’s rural mobile coverage spreads further than any other operator, EE is also favoured by customers in our towns and cities – which is where there is an overwhelming demand for multiple services beyond fixed lines. 

Since EE launched in 2012, it has captured the hearts of customers across all demographics – topping the service charts, with a strong brand that can stretch into new areas beyond connectivity as well as offering the best network and service.

We will share more about our launch plans later this year. 

Marc Allera, CEO, BT Consumer 

The wording suggests that more of the new products will appear under the EE brand. In the past EE with its past focus on mobile connectivity was seen as a younger persons brand, and as a generation that has grown up not knowing a world without mobile or fixed line broadband are now renting or owning their own properties BT believe that a refocus is needed to avoid people jumping to a growing number of other retail networks/providers.

So for the millions with a BT phone and/or broadband what is going to happen? Well it does read to us as if not much for now, since BT Consumer is still going to sell fixed line phones and broadband. What is likely to happen is that upsell for converged products e.g. mobile and broadband will end up being just via EE. Certainly with the popularity of BT amongst the older generation who may still feel happier with a paper bill even if it costs them more a shift from BT to EE brand could be confusing, add to this mix the next few years when copper phone lines shift to being voice over broadband and we can see lots of younger relatives ending up having to a good bit of explaining - and that financially is a danger for BT Consumer as people may convince relatives to change to their own favoured retailer. One of the triggers for all this might be that consumer feedback was suggesting lots of people care little for their landline when they have reasonable mobile coverage at home.

The last time there was a big BT Consumer change was when the current tier of brands was announced at a press conference in the Tate Modern and at that time the pecking order was: 

1. BT brand the headline brand with expanded backup options via 4G/5G 
2. EE the brand for those after mobile and broadband bundles who care little about a landline phone.
3. Plusnet the budget brand 

The changes seem to mean in our view: 

• EE the lead brand, with converged bundles of mobile/broadband/landline and other services 
• BT for those wanting just a landline or just broadband 
• Plusnet remaining the budget brand with what is looking an ever older product portfolio of ADSL2+ and VDSL2 

Hopefully things will become a lot clear in the coming months and maybe there will be a press conference once everything is ready to happen so that everything can be explained and questions asked about the implications for specific groups.

One problem that is not going to vanish in the next few months is the pressure on disposable income for many people and this is likely to curb spending on the best or latest tech toys. So expensive bundles or upgrades e.g. Halo 4G backup are something people may not buy and instead just complain loudly on the rare occasions they have problems with their full fibre connection.

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