SECURITIES AND EXCHANGE COMMISSION
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act 1934
Report on Form 6-K dated May 27, 2009
BT Group plc
(Translation of registrants name into English)
BT Centre
81 Newgate Street
London EC1A 7AJ
England
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form 20-F
X Form 40-F o
Indicate by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934.
Yes o No X
Enclosure: Shareholder Magazine May 2009
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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BT Group plc
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By: |
/s/ Alan Scott
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Name: |
Alan Scott |
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Title: |
Deputy Secretary |
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Date: May 27, 2009
Chairmans
introduction
I am confident that
BT will emerge from
the current recession
a stronger company
The world looks a very different
place than it did a year ago. Global
trade has contracted for the first time
in many decades. Financial markets have
been in turmoil and trading conditions
worldwide remain extremely challenging.
Against this background, the importance
of defending free trade and fighting for
regulation that promotes investment and
encourages competition has never been
greater.
Three out of our four principal
divisions (BT Retail, BT Wholesale and
Openreach) are delivering well.
Managements highest attention is now
directed towards returning BT Global
Services, our one under performing
division, to profitable growth.
Of course the current downturn will
end, and I am confident that BT will
emerge from the recession a stronger
company. We have in place a management
team that not only understands the
challenges we face, but also sees the
opportunities that lie ahead for our
business.
So we are continuing to innovate and
look for opportunities to grow. This
issue of Forward looks at some of the
exciting things that we are doing.
Super-fast broadband promises to
change all of our lives. On page 4,
you can read about our plans to bring
broadband speeds many times faster
than currently available within the
reach of 10 million UK homes by 2012.
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BRINGING IT ALL TOGETHER FOR LONDON 2012
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01 |
BT FORWARD CHAIRMANS INTRODUCTION
Delivering excellent customer
service is vital and so I am delighted
to say that we continue to see
improvements right across our business.
For example, at Openreach, customer
service is now at its best ever level
and our engineers have played an
important part in this success. You can
read about an engineers typical working
day on page 14.
On page 10 we explain the vision for our
main research and development (R&D)
centre at Adastral Park. The development
of the park will deliver a regenerated
R&D facility and a new residential
community, including educational and
social facilities. Our plans will ensure
that the park will continue to lead the
way in communications technology and
innovation long into the future.
We are committed to being a
responsible and sustainable company and
to having a positive impact on society.
Our Wind for Change project is the UKs
biggest corporate green energy project
outside of the energy sector. On page 16
we explain how we plan to generate 25
per cent of our current energy needs
from wind power.
Below you can read about our
customised portable personal computers
that are giving disabled students a
voice. And as official communications
services partner for the London 2012
Olympic and Paralympic Games we are
encouraging our employees to get
involved in volunteering in their
local communities.
BT Conferencing is a real success story
and is now the worlds biggest provider
of video conferencing. We show how
conferencing can save time and money, as
well as protecting the environment on
page 20.
For these reasons and for many
others I am very confident about the
future for our business, our employees,
our customers and for you, our
shareholders.
Giving disabled students a voice
TA Wheeltop is a customized
portable personal computer, similar
to a laptop, which is mounted on a
wheelchair.
In April 2007, BT partnered with
disability charity, Scope, to give
disabled students access to Wheeltops.
The computers provide a voice to
students with communication and
other impairments, as well as access to
a range of communication technologies
for education and social purposes. The
three year partnership is called The
Wheeltop Project. Its rooted in a
shared belief that being able to
communicate is a fundamental human
right. The project, based at Scopes
further education centre, Beaumont
College in Lancaster, gives Wheeltop
users access to applications like
email, texts and the college network.
@ www.btplc.com/innovation/helpingsociety
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02
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BRINGING IT ALL TOGETHER FOR LONDON 2012 |
Volunteering
for London
2012
The Games dont just inspire
competing
athletes. They motivate billions of
people around the world to be the
very best they can be
And its not just competitors who
will realise their ambitions. As the
official communications services partner
for the London 2012 Olympic and
Paralympic Games, BT is helping our
people to make their mark too. Suzi
Williams, BT Group Marketing and Brand
Director, says, Although London 2012 is
still three years away, were already
encouraging our people to volunteer to
get involved in lots of different
activities things they wouldnt
normally have the chance to do.
Weve got five volunteering themes: arts
and culture; coaching and mentoring;
green and environment; sport and youth
and education.
So a youth and education volunteer
might find themselves going to a local
school to teach communication skills
using sporting analogies and the
Olympic Values, to breathe life into
the topic.
Its all about making sure
we leave a lasting legacy. Were
working with our local communities now,
but we also hope our volunteers will
continue to help in the future, long
after the Games are over.
@ www.btplc.com/BTLondon2012
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BRINGING IT ALL TOGETHER FOR LONDON 2012
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03 |
BT FORWARD NEXT GENERATION BROADBAND
Schools and colleges could pool resources and teach specialist subjects, which they wouldnt
have been able to do before and allow parents greater participation in the education process.
And all of this cuts back on travel, which means lower carbon emissions too.
BT is already making super-fast broadband a reality for consumers and businesses in the UK. Ruth
says, We are installing fibre-optic, super-fast broadband in homes in Ebbsfleet Valley in Kent.
People are already getting data speeds of up to 100 megabits per second by far the fastest speed
available to residential customers anywhere in the UK.
We are doing technical trials in other parts of the country too. For example, we have been running
a trial in Foxhall in Suffolk since January 2009; in July 2009 we will begin trials covering around
30,000 premises in Muswell Hill in London and Whitchurch in South Glamorgan. By March 2010, we now
aim to provide access to fibre-based, super-fast broadband to more than one million premises. The
trials and early deployment will help us to learn more about the needs of different people in
different geographic areas both in cities and in more rural areas.
The introduction of super-fast broadband will be led by customer demand. Ruth explains, We dont
have a pre-determined rollout plan. We will introduce super-fast broadband where theres sufficient
demand. This involves consulting with communication providers, regional development agencies and
local and devolved government and introducing the new fibre-based products where people are ready
to use them.
The UK is now one of the worlds leading countries for broadband in terms of availability,
affordability and take-up. The vast majority of people in the UK have access to broadband with
nearly two thirds of the population actually subscribing to the service.
Ruth says, There are already high levels of interest in super-fast broadband. We need to make sure
that people are fully aware of its benefits and understand that it isnt just about high speed
internet access. We believe that the launch of new services, interactive content and the sharing of
information, which requires higher upload speeds, will increase demand.
@ www.bt.com/broadband
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06
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BRINGING IT ALL TOGETHER FOR LONDON 2012 |
Priorities for
the year ahead
Even in the most difficult economic times, a diverse and agile business like ours will find
opportunities to grow and improve the services we deliver to our customers
Q&A with Ian Livingston
Q. It has been a challenging first year in charge of BT what have been the major features for
you?
Ian Livingston: Lets start with the positives. Despite the difficult economic conditions,
three of our principal divisions BT Retail, BT Wholesale and Openreach have all delivered ahead
of expectations. Together they have recorded their best performance for more than five years.
However, the performance of BT Global Services has been unacceptable and we have taken steps to fix
this.
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BRINGING IT ALL TOGETHER FOR LONDON 2012
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07 |
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BT FORWARD PRIORITIES FOR THE YEAR AHEAD
Q&A with Ian Livingston
Another important milestone was committing to make the biggest ever investment in super-fast
broadband in the UK. We will spend £1.5 billion making the service, delivered over fibre-optic
cable, available to 40 per cent of the homes in Britain by 2012 providing that the regulatory
conditions allow us to make a proper return. This will offer customers speeds of up to 100 Mb/s,
allowing them to simultaneously run multiple bandwidth hungry applications like HD video. This is
not just an important investment for BT, it is a significant development for the UK and its future
as a knowledge-based economy.
Finally, I am really proud of the improvements we have made in the quality of our customer service.
As an example the time it takes us to repair a network fault has been halved in the last three
years. We know there is much more to do, but in a highly competitive market I am certain that being
known for outstanding customer service can be a key differentiator for BT.
Q. Have the problems in BT Global Services been resolved?
IL: First of all, I want to be clear that the issues in BT Global Services are not principally to
do with the recession or a lack of demand for our services. The problem has been a failure to
control costs properly. The scale of the issue only became clear during the course of the year, but
we acted quickly to take the tough decisions that will turn the business around. These include,
putting a new management team in place, urgently addressing our cost base and lowering the expected
financial value of some key contracts. As a result of our actions, I believe the division is now in
a position to return to profitable growth.
BT Global Services has a very healthy order book, and during tough economic times our ability to
help customers reduce their own costs makes our proposition compelling. At the same time, we
continue to improve the quality of the services we deliver. The independent research group,
Telemark, recently rated BT Global Services the best operator in the world in its Customer
Satisfaction Index with the highest score ever awarded.
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BRINGING IT ALL TOGETHER FOR LONDON 2012 |
Q. What are the major opportunities for the business?
IL: Even in the most difficult economic times, a diverse and agile business like ours will find
opportunities to grow and improve the services we deliver to our customers. For example, we aim to
build on the success of BT Conferencing, which is strongly growing both revenue and profits and is
now the worlds biggest provider of video conferencing.
Another example is our Business One Plan service, which is the UKs first triple play of
landline, mobile and broadband for small and medium-sized businesses. It launched three years ago
and in 2009 added free calls within an organisation even between offices and mobile workers a
significant saving. Over a million business lines are now using this service and more than 2,500
new customers sign up each week.
Our ability to provide world-class, networked IT services for multi-national organisations remains
an important part of our portfolio, while the roll out of super-fast broadband in the UK will carry
with it a host of exciting new possibilities.
Q. Managing BTs costs is clearly important. Tell us about the right first time initiative.
IL: It is vital we manage our costs. When we focus on customer service and get things right
first time, we not only make our customers happy, we reduce our costs as well. Thats why our goal
is to get our service right first time. When we do this the number of people contacting our call
centres falls and so does the number of engineers we need to send out to fix things. This is just as true for our biggest
corporate customer as it is for a family buying broadband for their home. We have made real
progress in the past twelve months. Service levels are the best they have ever been on a number of
measures, and theres much more we can achieve in the year ahead.
Q. How important is it for BT to be an international business?
IL: We are a global business and we serve global customers we service 170 countries and employ
around 20,000 people outside of the UK. We need to be wherever our customers want us to be,
delivering a consistent service regardless of location. We also want to pick the worlds best
brains. Our main research and development centre based in Adastral Park is home to highly skilled
researchers and academics from all over the world. We have research teams based in Malaysia and in
China, as well as links to 30 world-leading universities including MIT/ Cambridge and University
College London.
Q. How important is innovation and developing the technology of the future to BT?
IL: Pioneering innovation and research and development are vital to us. Last year we spent £1.25
billion, the third highest spend of any British company. This is an investment in our future as it
helps us to reduce costs, develop new products and improve customer service.
Q. What are your top priorities going forward?
IL: When I took over as CEO I said I had three priorities, and I am sticking with them. They
are to provide excellent customer service; to continue investing in networks, systems and services
including super-fast broadband; and to make BT a more agile company so that we can deliver faster,
better, great value services to all our customers from major global organisations, through the
small business sector, to the millions of families who we are proud to serve every day. My aim is
for BT to be a better business with a better future.
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BRINGING IT ALL TOGETHER FOR LONDON 2012
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BT FORWARD A CENTRE OF TECHNICAL INNOVATION
This is appropriate as Dr Ivan Boyd, Head of Research Operations, BT Group, explains: Weve
deliberately set out to create a very open community that allows the best brains from different
organisations from all over the world to meet and this helps ideas to spark.
The work we do here covers everything from advanced business software for predicting faults
on networks before they happen, to developing energy saving systems for the homes of the future.
But its not just the responsibility of the people at Adastral Park to be innovative, a culture of
innovation exists right across BT. For example, our New Ideas Scheme allows any employee to suggest
an idea that might improve products or customer experience or help us work more effectively.
Since the schemes launch, a number of suggestions from employees have either generated income, cut
costs or improved the working environment at BT. Ideas include a website that provides a simple way
to identify and reuse stopped lines and a system that reduces the failure of critical tasks.
To ensure that Adastral Park continues to lead communications technology and innovation, BT has
unveiled a vision for its future. This will create a sustainable environment that supports a
regenerated R&D facility and a new residential community of up to 2,000 homes, including additional
educational and social facilities.
Graham Murchie, Strategy Director, Adastral Park Development, says, Weve been here for 40
years and a significant number of the buildings were constructed in the 1970s and 1980s. While the
park is still a world-class R&D facility, it would be short-sighted if we did not put a plan in
place now that ensured Adastral Park retained and built on this status for many years to come.
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12
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BRINGING IT ALL TOGETHER FOR LONDON 2012 |
Predicting
the future
A small group of people at Adastral Park spend their time mapping the future. Jonathan Mitchener,
one of BTs Futurologists, explains, My job is to look ahead and see how technology will develop
in the future. I work with many of BTs biggest customers to help them see whats coming. For
example, I am currently helping people in the health sector to understand how technology can assist
with patient care taking into account future characteristics and population trends. I also work
with companies to identify the next disruptive technologies technology such as the internet which
has turned the business world on its head. Our customers really value this insight as it helps them
to plan more effectively.
I work in a team of four and combine scientifi c disciplines such as nanotechnology and
biotechnology with demographic data and scenario planning to develop my research.
I need to be very open minded and interested in everything. I also spend a lot of time meeting
people to make sure I am constantly building my knowledge and sharing insights with others.
One area that Im really excited about is the potential of the virtual world. Its still early
days, but big companies are already experimenting with it for things like trialing new products and
for training their staff. In future, I believe most companies will operate in both the real and
virtual worlds.
Adastral Park is already an integral and important part of the regional economy, contributing £850
million annually. The development plans for the site will ensure that this remains the case long
into the future. Graham explains, Our plans include the creation of more than 2,000 information
communications technology (ICT) related jobs over the next 10 years. Also, InnovationMartlesham,
our partnership with the East of England Development Agency, provides a home and facilities for
start-up companies. In the past year alone, 11 companies have moved onto the site to develop their
businesses alongside BT.
But its not only about creating a sustainable supply of jobs. We will continue to create and
encourage the scientists of the future by bringing school children to the park to learn about ICT
and by expanding the university presence here. We dont want young people moving away to study, we
want them to develop ICT skills here the skills that businesses need now and will need in
future.
@ www.atadastral.co.uk
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BRINGING IT ALL TOGETHER FOR LONDON 2012
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BT FORWARD
The benefits of conferencing
Companies can save money and help the environment
Over the last five years, BTs own use of audio, web and video conferencing has stopped nearly
300,000tonnes of CO2 being pumped into the atmosphere.
These services also save us money and time. For example, on average we save £256 every time we
replace a face-to-face meeting with conferencing. In a company as big as ours, that means we can
save lots of money every year. And we cut unproductive time spent traveling to meetings too.
We provide three types of conferencing. Audio conferencing lets people use their phone -
either landline or mobile to talk to several colleagues at once. Web conferencing lets people
talk to colleagues, while using the Internet, to share papers and presentations. And video
conferencing lets people see who theyre meeting and have nearly the same experience as they would
from meeting in person.
Customers can choose just one of our conferencing services or combine more than one in a
package that best suits their business. For example, web conferencing is a perfect partner for
audio conferencing.
Aaron McCormack, CEO of BT Conferencing, says, New technology means we are always improving
our conferencing services. Video conferencing is now so much better than it was. We offer what we
call an immersive experience where everyone on the call feels like they are in the same room,
with life-size video images allowing people to make eye contact and read body language.
Using audio, web or video conferencing will reduce annual spend on travel by cutting
unnecessary journeys. Other costs associated with meeting face-to-face, like accommodation, are
also cut. We estimate that using conferencing to cut travel spend has saved us over £192 million in
the last 12 months alone.
Aaron says, Some of our biggest clients, like Unilever and Philips, have made major savings on
their annual travel budgets since choosing BT Conferencing. We are confident that all of our
customers will get a return on their investment within a year of starting to use our services. In
todays economic environment, this makes good business sense.
So being greener and saving time and money can go hand-in-hand.
Conferencing also helps people to balance their work and personal lives. Aaron explains,
Cutting out millions of journeys every year means people no longer have to spend time traveling to
and from meetings. And if they have to travel to these meetings outside of their working hours,
this can really benefit their personal lives too.
The market for conferencing is still in its infancy, but is likely to grow rapidly in the next
three to five years. Aaron says, Only two per cent of European workers, who could use conferencing
to replace real meetings, actually do. We plan to invest in our conferencing so that we deliver the
best audio, web and video services and get more people using them.
@ www.conferencing.bt.com
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BRINGING IT ALL TOGETHER FOR LONDON 2012 |
Be an e-shareholder
With around 1.2 million shareholders, BT sends out a lot of paper each year. Being an e-shareholder
enables you to receive your shareholder communications electronically, reducing our combined
impact on the environment. You can build, view and manage a full share portfolio online. Whats
more, e-communications helps BT manage costs, which is good news for you as a shareholder. Visit
www.shareview.com/online today!
As an e-shareholder you can benefit from:
Dividends direct to your bank account
Go online and choose to have your future dividends paid directly into your bank account, meaning
less hassle for you, youll get your money faster, and youll still receive a tax voucher giving
you full details.
e-Tax vouchers
You can receive an electronic tax voucher (e-Tax voucher). Its easy for every dividend, youll
receive an email to your private email address and a secure link so that you (and only you) can
access your dividend details from the comfort and convenience of your own home, saving paper each
time.
Update your shareholder details the easy way
Update your personal details so you wont need to write in to update your shareholder details,
such as address or bank account, but can do it securely online.
e-comms preference for communications
Choose to access new documents online and well notify you whenever they become available. Every
document that doesnt have to be printed and mailed helps reduce our impact on the environment.
How do I become an e-shareholder and get access to all these services?
Its easy! Just go to our Registrar Equinitis secure site
www.shareview.com/online, click on Register to set up your free Shareview Portfolio, and fi ll in
the details it will only take a few minutes! Well send you your activation code so that you can
update your contact details, bank details, communication preferences, and more visit
www.shareview.com/online today!
Special offers
We have special offers for e-shareholders.
Find out more at www.bt.com/shareholderplus
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BRINGING IT ALL TOGETHER FOR LONDON 2012
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BT Total Broadband from
just £7.78 a month,1 for the
first three months, plus
Welcome Cheque of up to £602
BT Total Broadband is a fast, always-on internet connection. Share your latest news and pictures in
an instant. Make cheap internet phone calls or have home video chats with friends and family
wherever they are in the world3. All this without tying up your telephone line. Sign-up
or switch to BT Total Broadband. Prices from just £7.781 a month for the first three
months.
Step one: sign-up to BT Total Broadband
Sign-up now for BT Total Broadband and be eligible
for up to £60 Welcome Cheque2
Option 1: £25 cheque
Option 2: £40 cheque
Option 3: £60 cheque
Order at
www.bt.com/shareholders/broadband
or call 0800 055 6258 and quote Shareholders
New broadband sales only (Sales line open
Monday Friday 8.30am 7.00pm only)
Please call 0800 800 150 for all other matters.
Step two: claim your Welcome Cheque
Claim your Welcome Cheque at
www.btshareholder.onlinerebates.com
BT Group plc
Registered office: 81 Newgate Street, London EC1A 7AJ.
Registered in England and Wales No. 4190816.
Printed in England by Pindar Graphics
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fibre.
All pulps used are elemental chlorine free (EFC).
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PHME 57864
Claims for a Welcome Cheque must be submitted within 28 days of your broadband being activated
Please supply all the details and remember to press submit. Failure to supply all the requested
information may invalidate your claim. You will need to supply:
1. The telephone number of your broadband line
2. Your order reference number
3. Your shareholder reference number.
If all the correct information is supplied and your claim is validated, then you will receive your
Welcome Cheque within 28 days of activation.
Terms and Conditions
1. Introductory price achieved via one-off credit on your first bill. Option1, £15.65 a month from
month four with £23.58 bill credit. Option 2 £13.69 a month for first three months then £20.54 a
month, £20.55 bill credit. Option 3 £18.59 a month for first three months then £24.46 a month,
£17.61 bill credit. 18 month minimum term. New customers only. Excludes upgrades/regrades. New BT
Home Hub included. Excludes customers BT has already provided with this Hub. Conditions apply.
Featured handset £39.14. BT line/similar and payment by Direct Debit required. BT Total Broadband
is subject to availability and conditions apply. See www. bt.com/broadband for details.
2. To claim your Welcome Cheque go to http://www.btshareholder. onlinerebates.com and register
your BT Broadband order details. Welcome cheque depends on option chosen, Option 3: £60; Option
2: £40 and Option 1: £25. Your claim MUST be made within 14 days of activation. New orders only.
Payment by Direct
Debit required. Your broadband must be ordered before 30th September 2009 and you must claim your
Welcome Cheque by 31st October 2009. Terms and conditions apply.
3. Pence per minute charging applies after one hour. Redial before one hour to avoid call charges.
Opt-in required. Quality of reception may not match landline. Access to Emergency Services is
provided but calls including emergency calls to 999 or 112, made via BT Broadband Talk may not work
in the event of power or broadband connection failure. These failures may be caused by reasons
outside our control. Location information, provided to the emergency services, is limited to the
address of the associated telephone line where applicable. Broadband Talk does not currently
support Number Portability, or Text Relay or Directory Enquiries for disabled customers. Abuse
policy applies. Touchtone telephone required.