I thought the news that a BT subsidiary has applied to become an alternative business structure (ABS) was the most interesting so far in what is predicted to be a year of unprecedented change in the legal profession.

Sure, it’s interesting that private equity money is being used on an advertising campaign for a franchise. But pooling marketing spend is not, in itself, anything new - National Accident Helpline has done that for years.

Flotation on a stock exchange raises some interesting questions around independence and ethics. And a supermarket pushing consumer-facing legal services beside recipes that suggest baked potatoes could be ‘fun’ provides a different granular feel to the provision of legal services.

But BT doing something for itself, then offering the same service externally, well that’s interesting - or could be (stay with me here).

First up, it is a development on the corporate side. All too often any reminder that the shape of legal services may change in places other than the traditional ‘high street’ are met with a shrug.

More importantly, though, what’s proposed with BT looks and feels more like the sort of back office, supply-chain arrangement that has transformed other areas of business across the world.

There’s a striking phrase bandied about in mainstream business circles: ‘Making stuff - that’s easy. Now, supply-chain logistics - that’s hard.’ Getting it right, though, leads to a competitive edge.

Other parts of BT already do, or use, the joint venture and total outsourcing models that are relevant here.

In fact BT was part of an interesting Legal Services Board ‘what if?’ used in scenario planning (I assume staff there will now use a different ‘hypothetical’ company). What if, LSB people asked privately, BT and BP were to create a joint venture entity to meet their (non-competing) ‘back-office’ legal needs, and then sought to provide services to other companies as well?

I don’t know if BT’ll make a success of their ABS.

But to me, what BT could do looks feels and smells a lot more interesting than an ad campaign, or even a new source of leveraged finance, because it is a new model that looks a little like models that have changed other areas of business.

And it is arriving in part of the market that hasn’t been expecting a new model, because it was assumed the only competition around was opposite a fun baked potato.

Eduardo Reyes is Gazette features editor

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