Spending plans will not be hit by unit problems says BT

The chief executive of BT has recently announced that its ambitious plans for investment at the telecoms company will not be affected by problems with BT Group’s Global Services business.

The better-than-expected results within the rest of the BT group would be far outweighed by charges of £340 million ($480 million) it would take at its corporate IT services warned BT on the 22nd January.

At the annual meeting of the World Economic Forum Ian Livingston, the CEO at BT was asked if this would affect its overall plans for spending and he said “No, I don’t think so.”He added “We still have strong plans to invest in fiber in the UK and also, actually, to still expand our global presence.”

Providing telephony, broadband services and networked IT services the British-based BT operates throughout the world. The long-term potential of the emerging markets was something Livingston said that he was still confident of and that some of the markets were holding up better than others.

He said “South America is still a bright spot. China and India, whilst they are going to be tougher than they have been, still represent opportunities,” he said. The fundamental underlying situation of the growth in Asia-Pacific and also in South America is going to come through in maybe in 12-18 months time and probably push forward.” BT reduced its global workforce to about 150 000 back in November 2008 when it axed 10 000 jobs and it advised that the chances of this being a one-off was unlikely.

Plans remained for a further cut of 10 000 jobs in 2009 so far although Livingston said that in order to reduce price he would carry on look for alternative efficiencies. He said “We will be a more efficient business and also at the same time free up the cash to invest for the long term. You don’t make 20-year investments and do it with a one-year horizon.”