Business At Work.

Customer satisfaction

Customer satisfaction is the cornerstone of the new strategy and BT aims to be the most customers focused and efficient communications company in the markets in which it operates. BT's target is to reduce customer dissatisfaction by 25 per cent per year.

BT continues to become a more "e-Centric" company to improve processes and services whilst constraining costs and they will also continue to develop bt.com as a service channel.

Financial discipline

BT is also focusing on achieving world-class operating costs and resulting systematic improvements in operating cash flow and profit levels. The financial model for the company is based on a balance between organic revenue growth and cash generation. The key financial measures will be earnings per share growth and cash generation.

Broadband

BT aims to have 5 million UK connections by 2006. BT Retail will continue to expand its brand into other new areas such as communications services for small and medium-sized businesses and wider corporate communications technology solutions including mobile services.

BT open world is to continue to offer the full-service product for consumers and SMEs whilst also increasing its focus on value-added services.

Brand extension

BT is committed to an increased level of organic revenue growth through movement into adjacent markets, including a wider range of wireless and mobile services. BT will use DSL to enhance the communications experience to the PC through video and multi-media. BT will expand this to other devices, linking PC, telephone, sound systems and TV, adding interactivity to TV and the entertainment experience.

Motivated BT people

BT will encourage a strong performance orientation amongst its people. It will also grow the skills base of all in BT to meet new or growing requirements, especially in areas such as solutions, broadband and applications. BT will encourage diversity and develop its culture, all aimed at creating a customer focused business.

Profit maximisation

Investments abroad dented BT's earnings for its fiscal second quarter, but the BT still managed to make almost £7000 profit per minute during the period.

Revenue for the quarter ended 30 September it had climbed 21 per cent to £5.3 billion. But pre-tax profit had dropped 52 per cent to £890 million. Excluding gains from BT's sale of its interests in MCI last year, profit had actually raise 3.9 per cent from the year earlier quarter.

Around £3 billion in the last six months, accounted for much of BT's expenditure. BT also spent £3.15 billion taking full control of BT Cellnet, including buying Securicor's 40 per cent stake.

Investors in London are confident that the company would fight off increasingly tough competition at home and abroad, as BT's share price rose 64 pence to 1227 pence.

BT chairman Sir Iain Vallance said: "Growth prospects in the UK and internationally remain good, but they face increasing competition as the globalisation of their industry continues."

Competition does have one positive side for BT. the money they receive from other UK operators, mainly used for carrying part of their traffic on its network, rose £189 million in the six months to the end of September.

Market shares

BT shares hit 31 month low

British Telecom shares have fallen by 600p for the first time in more than two and a half years. The company's shares started the year at 1513p, slid 28p to 591p. The shares later recovered to close down 10p at 609p the last time-shares in the former state monopoly closed below 600p were on 10 March 1998.

Telecom weak

The latest decline was in line with falls in other telecoms stocks in London, as Colt Telecom was down 46p, or 3.7%, at 1,210p, and market leader Vodafone fell 4.75p, or 2%, at 241.25p , weakened by the continuing global concerns over prospects for profits.

The fall defied the unveiling of plans to sell the portal and internet service provider LineOne as part of a company "refocusing".

Analysts have voiced concerns that BT has retained too much of the dislocated public service structure inherited on its privatisation in 1984.

LineOne, a 50:50 joint venture with United News & Media, claims to be one of the top five UK ISPs, and is worth an estimated £340m.