British Telecommunications’ wireless unit, BT Wireless, slipped from the No. 2 wireless operator in the United Kingdom during the second quarter, falling behind perennial leader Vodafone Group and new runner up Orange SA.
BT Wireless added 301,000 customers in the United Kingdom during the quarter, below analysts’ expectations of around 400,000 additions, bringing its customer base to approximately 10.9 million subscribers. Even with lower-than-expected additions, most analysts applauded the carrier for only announcing active subscribers, eliminating inactive prepaid customers. BT Wireless defines prepaid customers as active if they have used the service within the previous three months.
Including the operator’s additional wireless holdings in VIAG Interkom, Telfort and Esat Digifone, BT added 492,000 customers during the quarter, bringing its total customer base to 16.1 million.
“The change in our reporting base is a logical and important step to help our stakeholders clearly understand the underlying trends both in our business and the wireless market as a whole,” said Peter Erskine, chief executive officer of BT Wireless. “The adjustment in our figures confirm our active customer base and as a result we are well placed to grow profitability in a market where the pace of overall customer growth is slowing.”
BT Wireless also added two members to its board of directors, Andrew Sukawaty and Paul Myners, ahead of its planned spinoff from BT scheduled later this year.
Sukawaty, who was president and chief operating officer of Sprint PCS until he left last June, was appointed non-executive deputy chairman. Sukawaty left Sprint PCS to become partner, president and COO of Callahan Associates International L.L.C., a managing partner of one of Europe’s largest cable operations and winner of licenses to provide fixed broadband services in Switzerland and Finland.
Myners, who was appointed a nonexecutive director at BT Wireless, is currently chairman of Gartmore Investment Management and serves on the boards of a handful of European technology companies.
