@AC 19:32
BTGS suffering is unlikely to be due to subscription losses from Phorm. GS don't have much to do with broadband service provision like that - they're the corporate networking, IT outsourcing, big Government and commercial contract arm of BT. (Yes, BT do actually have such a thing.) They do stuff like NHS Connecting for Health ('nuff said), computer systems for various UK councils and Government agencies, stock market trading platforms, etc. In fact, it wouldn't surprise me if the CfH project (or "the almighty NHS care records cock-up" as you might prefer to call it) was one of the significant contributory factors to BTGS' relatively lacklustre performance.
Ironically, I've heard from one or two folks that most of the people who work for BTGS - particularly the engineering staff - are about as anti-Phorm as you can get and think that it's a bloody stupid idea that is likely to do BT a lot of harm. Unfortunately, the assorted management clever buggers in BT Retail and elsewhere don't have a history of listening to their own technical staff, much less that bunch of overpaid, geeky IT swots in Global Services.
That's one of the saddest things about BT. There is actually a fair number of reasonably decent, competent engineers and techies who want to do a good job (by and large). However, they're overburdened and hamstrung by too many layers of clueless middle and senior management and a load of horrendously over-complex internal procedures (some historical, some due to regulatory requirements, many due to the aforementioned bloody awful management).