Fireside Chat, Interview
Philip Jansen, Chief Executive Officer of BT Group
- Phil Jansen, CEO of BT Group, tested positive for COVID-19 in March with mild symptoms, subsequently recovering and using the experience to advocate for transparency regarding the virus.
- Jansen disclosed his infection early to enable contact tracing for over 100 individuals, including government officials and industry peers, to protect vulnerable contacts such as his mother and mother-in-law.
- He highlighted the importance of sharing specific symptoms like breathing difficulties, noting that some severe cases presented without a raised temperature, a detail that prompted a friend to seek hospital care.
- The crisis required BT to prioritize three core principles: standing by customers, people, and the country, driven by BT's status as critical UK infrastructure.
- BT's executive team successfully managed a surge in 999 emergency calls despite a 20% reduction in staff due to isolation protocols, utilizing rapid retraining and shift pattern changes.
- BT connected 18 new hospitals to their network within days and enabled UK GPs to conduct video assessments, access patient records, and prescribe medication securely within four weeks.
- UK telecom demand profiles shifted dramatically, with average call lengths increasing by 50%, mobile data usage dropping by 10% as commutes ceased, and fixed data rising by 50-70% at peak times.
- BT deployed tens of millions in funding to upgrade network capacity and switches in specific geographic pockets to handle unexpected surges in demand without performance degradation.
- The company serves approximately one-third of UK SMEs, observing fewer immediate business failures than anticipated due to robust government support measures like the 80% wage furlough scheme.
- Jansen warns of significant future pressure on the SME sector once government support schemes conclude, noting the state cannot sustain multi-million payroll subsidies indefinitely.
- BT is committing to connecting 20 million homes to full fiber infrastructure within the next five to six years, with a long-term target of reaching 26 million homes.
- BT plans to double its 5G coverage in the UK within the next 12 months to create a converged network, leveraging its current position as the outright leader in 5G deployment.
- Jansen projects that global data usage is growing at 40% annually and will continue to accelerate, necessitating substantial investment in future-proof digital infrastructure.
- BT is currently investing £12 billion plus in full fiber rollout alongside 5G deployment and supplier base changes, creating a heavy upfront cost burden common across the global telecom sector.
- While 5G consumer returns remain uncertain, Jansen identifies significant commercial potential for 5G in enterprise campuses, virtual private networks, and manufacturing efficiency.
- BT faces a business model challenge as data usage surges but revenue remains flat due to non-usage-based pricing models, requiring a shift to new service offerings to generate returns.
- Jansen emphasizes the necessity for leaders to maintain personal well-being and mental health to prevent organizational "wobbles," citing his own daily 20-mile cycling routine as a coping mechanism.
- He advocates for leaders to admit when they are struggling and to prioritize human interaction and family connection as essential countermeasures to the isolation caused by the pandemic.
- Looking forward, Jansen envisions home health monitoring becoming off the scale within 10 years, driven by connectivity and sensors, to help redress the economics of healthcare provision.