BT back in the fray with blueprint

BT's new chief executive Ben Verwaayen will launch a make- or-break drive to redeem the telecoms group on Monday. Inheriting a company that failed to compete internationally, Verwaayen has been forced to turn to BT's last great strength - its 29m UK customers.

He will outline measures to boost customer service and drive demand for fast internet access, one of the few products with the potential to make BT more than a low-growth utility.

Central to Verwaayen's strategy will be a promise to deliver on a range of performance targets - a practice pioneered by highly-regarded oil giant BP. For BT, this means setting its ambitions against a raft of new indicators such as uptake of key products, average revenue per customer and measures of customer satisfaction and profitability.

Further cost cuts are possible on top of the £650m BT has already said it will slash from its retail division. A drive to further reduce its £13.6bn debt is on the cards.

Under Sir Peter Bonfield and Sir Iain Vallance, BT embarked on an expansion that burdened it with £30bn debt and led to its break-up last year.

It was once valued at 1500p a share and spanned the globe. Including its mobile arm - spun off last year - the rump is now worth 342p and is largely a UK operation with a loss-making European business telecoms side.

In recent months as many of its competitors collapsed, Verwaayen and new chairman Sir Christopher Bland have started to rebuild confidence. 'They are talking the talk. Now they have to walk the walk,' said Brewin Dolphin fund manager Stuart Fraser. Deutsche Bank rates BT a 'buy' up to 300p. The shares rose 1/2p to 274p.