April 2024

In recent years, mergers and acquisitions have become commonplace in the telecommunications industry as companies seek to expand their market reach, improve service offerings, and achieve economies of scale. One of the most notable mergers in the UK was the acquisition of EE by BT Group, completed in January 2016. This merger brought together BT, one of the UK’s largest broadband providers, and EE, the country’s leading mobile network operator. While the merger promised numerous benefits, such as enhanced service offerings and greater network capabilities, it also led to significant challenges—most notably, a decline in customer support quality. This blog post examines the impact of the BT and EE merger on customer support, exploring the reasons behind the decline and the lessons that can be learned from this case.

The Promise of the BT and EE Merger

When BT announced its intention to acquire EE for £12.5 billion in 2015, the merger was hailed as a strategic move that would create a telecommunications powerhouse. The combination of BT’s fixed-line broadband services and EE’s extensive mobile network was expected to result in a “super network” that could offer customers a seamless, integrated experience across broadband, mobile, and television services. BT emphasized that the merger would lead to improved network coverage, faster internet speeds, and the development of innovative services that would benefit consumers.

Additionally, BT claimed that the merger would lead to operational efficiencies and cost savings, which could potentially be passed on to customers in the form of lower prices and improved service quality. The company also highlighted its commitment to maintaining and improving customer support across both brands, reassuring customers that the merger would not negatively impact their experience.

The Reality: Customer Support Challenges Emerge

Despite the optimistic projections, the reality of the BT and EE merger was far more complicated. Almost immediately after the merger, customers began reporting a decline in the quality of customer support. Complaints about long wait times, unhelpful service representatives, and unresolved issues became increasingly common. This deterioration in customer support can be attributed to several factors that arose as a result of the merger.

1. Integration Complexities

Merging two large companies like BT and EE is a complex and challenging process, particularly when it comes to integrating their customer support systems and operations. Both companies had different legacy systems, processes, and organizational cultures, which made the integration process difficult and time-consuming. The merger required the consolidation of customer service teams, call centers, and support channels, which often led to confusion, delays, and miscommunication.

For example, customers who previously had separate BT and EE accounts found that their accounts were merged without clear communication or explanation. This caused confusion, as customers were unsure which support team to contact for specific issues. The lack of a unified customer support strategy meant that customers were often bounced between different departments, leading to frustration and dissatisfaction.

2. Resource Strain

The merger also placed a significant strain on customer support resources. As BT and EE worked to integrate their operations, many employees were reassigned or faced redundancies, leading to understaffed support teams. This understaffing resulted in longer wait times for customers seeking assistance, as there were fewer agents available to handle inquiries. Additionally, the remaining support staff were often overwhelmed with the increased volume of calls and emails, leading to a decline in the quality of service provided.

The resource strain was particularly evident in the months following the merger, when customer complaints about long hold times and unresponsive support channels reached new heights. Many customers reported waiting on hold for over an hour, only to be transferred multiple times or disconnected before their issue was resolved.

3. Loss of Expertise

Prior to the merger, BT and EE had separate customer support teams that were specialized in their respective areas—BT for broadband and landline services, and EE for mobile services. These specialized teams had deep expertise in their fields, enabling them to provide effective and efficient support to customers.

However, the merger led to the consolidation of these teams, with many support agents being required to handle inquiries across both broadband and mobile services. This broadening of responsibilities often resulted in a loss of expertise, as support agents were no longer focused solely on their area of specialization. As a result, customers seeking help for specific issues, such as mobile network problems or broadband outages, often found that the support agents lacked the necessary knowledge to assist them effectively.

4. Increased Complexity for Customers

One of the promises of the BT and EE merger was the creation of a seamless, integrated experience for customers. However, in practice, the merger often led to increased complexity and confusion. Customers who previously dealt with either BT or EE for specific services were now required to navigate a more complex landscape of bundled services and support channels.

For example, customers who had a BT broadband account and an EE mobile account were now encouraged to combine these services into a single bundle. While this was marketed as a way to save money and simplify billing, it often led to confusion and complications when issues arose. Customers reported difficulty understanding their bills, managing their accounts online, and determining which support team to contact for specific problems. This complexity was exacerbated by the fact that the merger did not immediately result in a fully integrated customer support system, leaving customers to navigate a fragmented and disjointed experience.

5. Brand Reputation Damage

As customer support challenges mounted, so did the damage to the BT and EE brands. Both companies had built strong reputations in their respective markets—BT as a reliable broadband provider and EE as a leading mobile network. However, the decline in customer support quality following the merger began to erode this hard-earned trust.

Negative reviews and complaints flooded social media and online forums, with customers expressing frustration and disappointment with the level of service they were receiving. Many customers felt that the merger had prioritized cost savings and operational efficiencies over their needs, leading to a perception that BT and EE no longer valued their customers. This reputational damage was reflected in customer satisfaction surveys, where both BT and EE saw significant drops in their rankings.

6. Regulatory Scrutiny and Penalties

The decline in customer support quality did not go unnoticed by regulators. Ofcom, the UK’s communications regulator, received numerous complaints about BT and EE’s customer service following the merger. In response, Ofcom launched investigations into the companies’ practices, resulting in fines and mandates for improvement.

For example, in 2017, BT was fined £42 million by Ofcom for delays in connecting high-speed business lines, a service provided by its Openreach division. While this fine was not directly related to the merger, it highlighted the growing concerns about BT’s ability to manage its customer service obligations effectively in the wake of the merger. Similarly, EE faced penalties for misleading customers about charges for early termination of contracts, further tarnishing its reputation.

Lessons Learned from the BT and EE Merger

The challenges faced by BT and EE following their merger offer several valuable lessons for other companies considering similar mergers or acquisitions:

1. Prioritize Customer Support Integration: Mergers and acquisitions often focus on financial and operational integration, but customer support should be a top priority. Ensuring a seamless transition for customers requires careful planning and investment in integrating support systems, processes, and teams. Companies should strive to maintain or even enhance the quality of customer support during and after the merger.
2. Maintain Expertise: While consolidating support teams can lead to cost savings, it is important not to lose the specialized expertise that customers rely on. Cross-training support agents can be beneficial, but companies should ensure that there are still experts available to handle specific issues effectively.
3. Communicate Clearly with Customers: Clear and transparent communication is crucial during a merger. Customers need to be informed about how the merger will affect their accounts, services, and support options. Proactively addressing potential confusion can help prevent frustration and build trust.
4. Invest in Customer Support Resources: Mergers often lead to increased demand on customer support teams, as customers seek clarification and assistance with the transition. Companies should be prepared to invest in additional resources, such as hiring more support agents or extending support hours, to handle the increased workload.
5. Monitor and Respond to Customer Feedback: Customer feedback should be closely monitored during and after a merger. Companies must be responsive to customer concerns and complaints, addressing issues promptly to prevent them from escalating. Regular surveys and feedback channels can help identify areas for improvement and ensure that customers feel valued.
6. Protect Brand Reputation: A merger can put a company’s brand reputation at risk, especially if customer support quality declines. Companies should take proactive steps to protect their brand, including maintaining high standards of customer service, addressing negative reviews, and communicating the benefits of the merger to customers.

Conclusion

The BT and EE merger serves as a cautionary tale about the challenges of integrating customer support operations following a major acquisition. While the merger promised numerous benefits, including enhanced services and greater network capabilities, the reality was a significant decline in customer support quality that damaged both brands’ reputations. By prioritizing customer support integration, maintaining expertise, communicating clearly, and investing in resources, companies can better navigate the complexities of a merger and protect their most valuable asset—their customers’ trust.