& cplSiteName &

Verwaayen Set to Leave BT

Michelle Donegan
News Analysis
Michelle Donegan
4/8/2008
50%
50%

BT Group plc (NYSE: BT; London: BTA)'s straight-talking, media-friendly chief executive Ben Verwaayen says he will leave BT at the end of May after leading the British carrier for more than six years. (See BT's Verwaayen Steps Down.)

Verywaayen will step down as CEO at the end of May and will leave the board of directors at the end of June. He'll be replaced by BT Retail's chief executive Ian Livingston. (See BT Snares Lucent Exec, BT CEO Is Knighted , and Knight Time for BT.)

"He feels he's had a good run... and now it's time to let someone else have a go," says a BT spokesman. "It's nothing more dramatic than that."

The spokesman says Verwaayen made his decision recently and that he is not leaving BT for another position elsewhere. The spokesman said Verwaayen's decision was not forced by BT's board. Verwaayen has a 12-month rolling contract, which he has been on since he joined BT in January 2002, but apparently a contract renewal was not the issue; the BT chief has just decided to go.

Verwaayen's successor Livingston certainly has a tough act to follow. To say that Verwaayen transformed BT is putting it mildly. He has taken a staid, old British incumbent and made it a player in next-generation networking.

"Verwaayen sorted out the mess that was BT in 2002... It was a big job to pull BT back from the abyss," says Mike Cansfield, telecoms strategy practice leader at Ovum Ltd. "Also, the rapprochement and constructive dialogue with the regulator was a huge achievement."

Verwaayen navigated BT through a tense government investigation into whether the incumbent should be broken up. In the end, BT worked with regulator Ofcom and split out its access network business on its own terms with the creation of Openreach . (See BT Let Off the Hook, Government Report Cheers BT, BT Opens Up Access.)

His legacy in technology terms will be the massive and groundbreaking 21CN project -- a converged, all-IP network that BT is expected to migrate to some time in 2011. (See BT Moves Ahead With Mega Project and BT Inches Toward Telco 2.0.)

The 21CN has encountered some setbacks recently, and the timeline for the 21CN completion has slipped. Light Reading has reported that the operator is dealing with delays in the delivery of multiservice access equipment and problems with the new network's voice service related-elements in the 21CN Intelligence Node. (See BT: 21CN Slips, IPTV Nears, BT Aims to Finish 21CN in Late 2011, Upheaval at BT's 21CN?, and Green Leaves BT.)

"BT has been very quiet about 21CN -- strangely so," says Cansfield. "BT needs to be clear about what it's doing with 21CN."

Heavy Reading's chief analyst Graham Finnie says that Verwaayen has done an excellent job of marketing BT to the world through the high-profile 21CN project and the separation of Openreach. But the operator hasn't really done any better than other incumbent carriers that face the same challenge of being "reliant on revenues from saturated or maturing commodity products."

And in some cases BT lags other incumbents in technology innovation.

"BT has been slower than other telcos in some respects, specifically in launching content/entertainment services and in committing to deep fiber or FTTH strategies," says Finnie. "They have built a large global services business but it is barely profitable. The most profitable business is the wholesale business, which is in decline."

So running BT, prestigious as it is, won't be an easy job for Livingston. "Livingston will face at least as many challenges as Verwaayen as BT commits fully to NGN and tries to open up its platforms to third parties," says Finnie. "BT has a lower market share in broadband than most incumbents, and it is seeing revenue decline in its wholesale business. Revenues are flat overall. There will be plenty to do."

At BT Retail, Livingston has a good track record since he became CEO in 2005. "It's growing as a business and it's more profitable than it has been in years," says Ovum's Cansfield.

Those skills will be most welcome at BT Group, which faces the challenge of how to grow its top-line revenues.

Dresdner Kleinwort analyst Lawrence Sugarman welcomed the management change.

"Ian should bring a more direct and focused style in comparison to Ben's more visionary one," writes Sugarman in a research note. "In the current environment this change in style should be positive."

Livingston will be replaced by Gavin Patterson, who is currently group managing director of BT's consumer division. Meanwhile, Verwaayen will deliver BT's full-year results on May 15 and focus on the handover to Livingston.

— Michelle Donegan, European Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
bollocks187
50%
50%
bollocks187,
User Rank: Light Beer
12/5/2012 | 3:43:29 PM
re: Verwaayen Set to Leave BT
It is about time this guy moved on. Prediction CTO is going to go soon.

21st will be a disaster and a new RFP will be on the streeet in 9 months for 21.5 - lol

BT is still not a player.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, August 3, 1:00PM EDT
The Central Office Re-Architected as a Data Center
Guru Parulkar, Executive Director, Open Networking Research Center, Open Networking Lab
UPCOMING COURSE SCHEDULE
Wednesday, August 10, 1:00PM EDT
Telcos & Open Source 101
Phil Robb, Senior Technical Director, OpenDaylight
Friday, August 12, 1:00PM EDT
The Role of Open Source in NFV
Jim Fagan, Director, Cloud Practice, Telstra
Wednesday, August 17, 1:00PM EDT
Using Open Source for Data Centers and Cloud Services
Roz Roseboro, Senior Analyst, Heavy Reading
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (0) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Telecom Innovators Video Showcase
Versa Networks' Kumar Mehta on SD-WAN Managed Services

7|19|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Versa's Kumar Mehta for an interview focused on why service providers are building SD-WAN managed services, and how Versa's telco customers are innovating.
LRTV Custom TV
Juniper Networks & The Evolution of NFV

7|19|16   |   06:01   |   (0) comments


Senior Juniper Networks executives talk to Light Reading Founder & CEO Steve Saunders about NFV developments and the recent independent evaluation by test lab EANTC of Juniper's Cloud CPE solution.
LRTV Interviews
CenturyLink Goes Beyond Managed WiFi

7|19|16   |     |   (0) comments


CenturyLink's managed WiFi allows enterprises, such as retailers and resorts, to track guest WiFi usage in order to help them better communicate with customers.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Verizon Sports Big Plans for Yahoo
Alan Breznick, Cable/Video Practice Leader, Light Reading, 7/26/2016
Light Reading Beyond
Steve Saunders, CEO and founder, Light Reading, 7/28/2016
Are IP/Optical Integration Initiatives Moving to Silos?
Faisal Khan, Network Operator Technology Planning Dept., 7/28/2016
Yahoo Signing Off in $4.83B Sale to Verizon
Mari Silbey, Senior Editor, Cable/Video, 7/25/2016
Ericsson Board Has Been Asleep at the Wheel – Consultant
Ray Le Maistre, Editor-in-chief, 7/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
I've enjoyed interviewing many interesting people since I rejoined Light Reading, but William A. "Bill" Owens certainly takes the biscuit, as we say where I come from.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.