- BT retains historic brand alongside EE
- Increased investment in Plusnet despite service downsizing
What happened: BT shelves rebranding strategy under new CEO
BT Group has confirmed it will no longer retire the BT brand for consumer products. This reverses its previous plan to transition EE into the group’s “flagship brand”. According to The Telegraph, CEO Allison Kirkby shelved the rebranding strategy. The move came after concerns that retiring the historic BT brand could alienate older customers, especially those reliant on standalone broadband and landline services.
A BT spokesperson said:“EE is our lead consumer-facing brand for converged mobile and broadband customers. However, BT will always play a big role as one of our most highly valued brands. BT will continue as part of our portfolio of well-loved consumer brands alongside EE and Plusnet.”
In April 2022, BT announced it would simplify its operations by consolidating services and eliminating duplicate brands. Under the original plan, EE was to become the primary brand for most consumer customers. BT was set to focus on its Enterprise and Global units. Plusnet was expected to continue offering “basic no-frills broadband and landline” services, though it later discontinued landline phone options on FTTP.
Despite downsizing Plusnet’s services, which previously included mobile, TV, and home phone offerings, BT plans to step up investment in Plusnet. BT may also launch a new budget-focused mobile service in the future. It is unclear whether this will be under Plusnet or a new brand.
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Why it is important:
BT’s decision to retain the BT brand for consumer services marks a significant strategic shift. It reflects concerns over alienating older customers who are deeply familiar with the BT brand. The move also aligns with pressure from BT’s largest shareholder, Sunil Bharti Mittal, who has taken a hands-on approach to the company’s strategy.
By retaining both the BT and EE brands, BT Group can leverage the strengths of each. The BT brand remains a trusted household name. EE is known for its strong mobile connectivity and popularity across different age groups. This dual-brand strategy allows BT to maintain market presence and customer loyalty while adapting to evolving consumer needs.
BT is also increasing investment in Plusnet to strengthen its value broadband brand. This move is crucial as BT faces increased competition following the £15bn merger of rivals Vodafone and Three. By retaining its core brands and focusing on strategic investments, BT aims to navigate the competitive landscape more effectively and deliver long-term value to its customers and shareholders.
