By the time you read this, turmoil at British Telecommunications may have cost CEO Sir Peter Bonfield his job.By the time you read this, turmoil at British Telecommunications may have cost CEO Sir Peter Bonfield his job. Last November, when Bonfield detailed the second phase of BTs restructuring, he predicted "radical change" for the carrier, which posted $29.5 billion in revenue in financial year 2001. Did the change he envisioned include a new CEO? Struggling under the weight of $40.3 billion in debt, BT last month unveiled plans to split itself into two companies: BT Wireless and Future BT, and reported a $1.4 billion year-end loss, its first in its history as a public company. BT also suspended dividend payments and announced an $8.4 billion cash call.
But Bonfield was already in trouble. Initiatives to raise cash earlier this year were stymied by uncooperative capital markets. Slowing growth made unattractive targets of the units BT hoped to divest. In April, the financial press started clamoring for Bonfields blood, but settled for the head of Chairman Sir Iain Vallance. And in May, BT delayed the launch of the worlds first commercial third-generation mobile network.