Changes to how BT offers products and services to consumers means its budget brand Plusnet is under review.
In an interview with The Sunday Times, Marc Allera, the Chief Executive Officer of BT’s consumer brands, including EE and Plusnet, confirmed Plusnet’s future is under assessment.
BT is currently working towards moving consumers from its own-brand service across to EE. Only standalone phone and broadband customers will remain directly with BT, which will shift its focus to business and governmental customers.
But analysts had said the process of simplifying and integrating brands was likely to lead to other sub-brands being subsumed into EE.
Allera declined to comment on specifics on the review of Plusnet, such as whether the brand will completely disappear, but did confirm that customers will “see some changes over time. You know our future direction.”
Plusnet has marketed itself as a basic provider of broadband and related services, traditionally proud of its Yorskhire roots. Its current tagline ‘that’ll do’ underlines its cheap and cheerful offer. In recent years, the company has withdrawn from offering its own TV service, but has recently introduced fibre to the premises (FTTP) based products.
However, Plusnet’s business broadband offer overlaps with BT’s mission to become the group’s main business brand.
The internal assessment of Plusnet’s future won’t affect Plusnet’s current activities. If changes are made, customers would be informed if it affected their current contract with the company.
Wider change at BT
BT’s change of direction follows shareholder displeasure over the growing cost of its TV sports business. Last week, its joint venture with Warner Bros Discovery (WBD) was completed, facilitating the merger of both of their UK sports channel businesses. BT is now only liable for half of the sports rights costs and WBD has the option to buy BT out of the merged sports business in the future.
Allera also told The Sunday Times EE would start working with security provider Verisure to provide home security products linked through 5G. He also added the possibility of entering into selling travel insurance, based on the fact his company knew when its customers were abroad.
Sonali Khan, RXTV