Financial Information Analysis

Glasgow Caledonian University

Managing Financial Information

Coursework- 1

Name : Nikhil Unnikrishnan

Student ID : S1003062

Course : MSc Management of IT Innovation

Module : Managing Financial Information

Lecturer : Kazem Falahati

Submission Date : 28th October, 2010

Enquiry Point : Nikhil Unnikrishnan

N10@caledonian.ac.uk

Table of Contents

1 Introduction 1

1.1 Background 1

1.2 Current Structure of BT Group 1

1.3 Recent Developments 3

2 Competitors 3

2.1 Vodafone 3

2.2 Tesco 3

2.3 Virgin Media 3

3 Key Differentiators: 4

3.1 Employee Count 4

3.2 Total Assets 4

4 References 5

5 Appendix 8

Introduction

In this coursework, the financial positions of British Telecom as against three of its competitors operating in the telecommunication domain are examined. The three competitors considered are: Vodafone, Virgin Media and Tesco.

1.1 Background

British Telecom (BT), is the oldest and amongst the largest telecommunication companies in the world. In 1896, NTC was taken over by GPO and in 1912; GPO became the primary supplier of telecom services after it took over the private sector telecom services in UK, except for a few local authority services. (BT, 2010a)

In 1977, the Carter Report recommended the separation of two main services offered by GPO, and the findings led to renaming of Post Office Telecommunications as British Telecom in 1980, although it remained a part of the post office. (BT, 2010a)

On 19 July, 1982, the Government formally announced its intention to privatize British Telecom with a...