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23/10/2001
Unions brand BT demerger as “insane”
The Communication Workers Union (CWU) has mounted an eleventh hour bid to save BT from inflicting “insane” damage on the company by a demerger.
The union lobbied Tuesday’s extraordinary meeting of BT shareholders at the NEC in Birmingham in a determined bid to highlight the dangers of a demerger scheme that would spell the end of BT as an integrated telecoms provider.
The CWU has been calling on top managers and administrators to reconsider the split up of the British telecommunications giant into two separate companies, a move that will separate the fixed line business from the high-growth potential mobile division.
CWU deputy general secretary Jeannie Drake said: "This is like no other dispute in the history of the trade union movement. It has nothing to do with pay or conditions - simply a genuine desire to stop the company inflicting terrible long-term harm on itself where there is no commercial justification.
Although the opposition to the demerger is unlikely to succeed, the unions are not isolated in their prediction of danger ahead for BT; some analysts are concerned that divestment may reduce shareholder value. The unions are worried that mmO2 will be vulnerable to takeover in a mobile market sector that is likely to see further consolidation and that BT, bereft of the growth potential from a mobile wing, will no longer be able to exploit opportunities that integrated telecom companies will be able to enjoy.
Under the demerger, two holding companies, BT Group and mmO2, will be created. The BT Group will be comprised of BT Retail, BT Wholesale, BTopenworld, and BT Ignite. The second holding company, mmO2, will be made up of BT Cellnet, Digifone (formerly Esat Digifone), Telfort Mobiel, Viag Interkom, Manx Telecom and Genie (SP)
The union lobbied Tuesday’s extraordinary meeting of BT shareholders at the NEC in Birmingham in a determined bid to highlight the dangers of a demerger scheme that would spell the end of BT as an integrated telecoms provider.
The CWU has been calling on top managers and administrators to reconsider the split up of the British telecommunications giant into two separate companies, a move that will separate the fixed line business from the high-growth potential mobile division.
CWU deputy general secretary Jeannie Drake said: "This is like no other dispute in the history of the trade union movement. It has nothing to do with pay or conditions - simply a genuine desire to stop the company inflicting terrible long-term harm on itself where there is no commercial justification.
Although the opposition to the demerger is unlikely to succeed, the unions are not isolated in their prediction of danger ahead for BT; some analysts are concerned that divestment may reduce shareholder value. The unions are worried that mmO2 will be vulnerable to takeover in a mobile market sector that is likely to see further consolidation and that BT, bereft of the growth potential from a mobile wing, will no longer be able to exploit opportunities that integrated telecom companies will be able to enjoy.
Under the demerger, two holding companies, BT Group and mmO2, will be created. The BT Group will be comprised of BT Retail, BT Wholesale, BTopenworld, and BT Ignite. The second holding company, mmO2, will be made up of BT Cellnet, Digifone (formerly Esat Digifone), Telfort Mobiel, Viag Interkom, Manx Telecom and Genie (SP)
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03 September 2001
BT Wireless to be renamed ‘O2’
British Telecom (BT) has announced it is to rename its BT Wireless mobile phone business 'O2'. The name change comes ahead of the demerger of the mobile business from BT, which is expected to take place in November. The name change will eventually spell the end for the variety of well-known brands currently controlled by the BT Wireless group.
BT Wireless to be renamed ‘O2’
British Telecom (BT) has announced it is to rename its BT Wireless mobile phone business 'O2'. The name change comes ahead of the demerger of the mobile business from BT, which is expected to take place in November. The name change will eventually spell the end for the variety of well-known brands currently controlled by the BT Wireless group.
24 September 2001
BT considers further fragmentation of business operations
The demerger of BT’s mobile phone business might be the first in a series of fragmentations that could see the company broken up into an array of separate entities in an attempt to lessen company’s debt burden.
BT considers further fragmentation of business operations
The demerger of BT’s mobile phone business might be the first in a series of fragmentations that could see the company broken up into an array of separate entities in an attempt to lessen company’s debt burden.
05 February 2002
Union leaders warn against mmO2 redundancies
Union leaders have warned that strike action will be inevitable if mobile phone group mmO2 pushes ahead with plans to lay off one fifth of its workforce. The company - formerly BT Wireless - was spun off last year as British Telecom attempted to reduce costs.
Union leaders warn against mmO2 redundancies
Union leaders have warned that strike action will be inevitable if mobile phone group mmO2 pushes ahead with plans to lay off one fifth of its workforce. The company - formerly BT Wireless - was spun off last year as British Telecom attempted to reduce costs.
27 August 2001
BT Wireless demerger could mean jobs cuts in Republic
BT operations in the Republic of Ireland are likely to be severely hit by job losses when BT Wireless demerges from British Telecom, a report has revealed. The article, in the Sunday Business Post, revealed that up to 1,500 jobs are to go when the demerger takes place later this year.
BT Wireless demerger could mean jobs cuts in Republic
BT operations in the Republic of Ireland are likely to be severely hit by job losses when BT Wireless demerges from British Telecom, a report has revealed. The article, in the Sunday Business Post, revealed that up to 1,500 jobs are to go when the demerger takes place later this year.
13 November 2001
Vodafone announces huge loss
Over-ambitious acquisitions during the late 1990's by UK mobile operator Vodafone has resulted in company posting losses of £8.45bn over the same period. The bulk of the loss stems from the company’s decision to absorb the cost of recent acquisitions now, rather than wait for their new subsidiaries to pay for themselves.
Vodafone announces huge loss
Over-ambitious acquisitions during the late 1990's by UK mobile operator Vodafone has resulted in company posting losses of £8.45bn over the same period. The bulk of the loss stems from the company’s decision to absorb the cost of recent acquisitions now, rather than wait for their new subsidiaries to pay for themselves.
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