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By Jon Bernstein, 14 April 2000 18:18

COMMENT When Silicon.com compiled its list of European Agenda Setters earlier this year, one name above all others was notable by its absence - Sir Peter Bonfield, chief executive of BT. Our panel of experts said unlike those that made it - who were often bigger than their companies - Sir Peter (who would admittedly be hard pushed to be bigger than BT), showed few signs of creativity, entrepreneurism and the ability to think out of the box. Where others led - most obviously Bernie Ebbers' MCI Worldcom and Chris Gent's Vodafone AirTouch - BT rarely followed. The overhaul announced yesterday at least shows it's starting to follow - and follow the right people. Making its biggest strategic move in 16 years as a privatised company, BT is about to create four separate operations - Ignite, an IP data networking division aimed at corporates BTopenworld, a consumer Internet division BT Wireless, a mobile telephony division and Yell, the directories business. BT's core unit will be dedicated to fixed telephony with a proper delineation between its retail and wholesale business. To prove these are divisions in their own right, the intention is to float all four, starting with Yell before the year is out. If the strategy sounds familiar, just take a cursory glance at continental Europe. Spain's Telefonica has already spun-off and listed its Internet service provider (ISP), Terra Networks. Meanwhile the initial public offering of T-Online, Deutsche Telekom's own ISP, is a matter of days away. (And yes, both Deutsche Telekom's Ron Sommer and Telefonica's Juan Villalonga feature in our Top 50). BT's plans are on the right track. Some critics question why it's splitting off Internet and mobile divisions just as the two technologies are converging. But for the time being, Web and wireless customers have differing needs. Nevertheless, a credible strategy and executing it effectively are two very different things. Sir Peter talks of leaner management, increased accountability, and crucially, faster innovation. For a company and a man accused of dragging heels over ADSL roll-out and free Internet access, these are bold words. We are about to find out if he can match these with deeds. For related news and analysis, see:
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