High-speed BT gets broadband boost

BT broadband connections boomed to new highs in September. The telecoms company signed up 250,000 new customers to highspeed internet access during the month. It added 472,000 in April, May and June combined.

Recruiting broadband users is a key part of chief executive Ben Verwaayen's plan to offset falling income from phone calls.

BT is close to reaching 3.5m broadband customers after slashing prices and heavy promotion. But only a third are consciously buying BT services. The rest have signed up to rival providers such as Wanadoo or AOL that take BT internet access on a wholesale basis.

'The rate of broadband connections in the UK is growing faster than Germany, Spain or Italy,' said Alison Ritchie, BT's chief broadband officer. 'Broadband sales are seasonal. The quarter before Christmas is the biggest of the year as people look at getting new computers.'

During one week in September, BT handled 100,000 broadband 'transactions' - including new customers and upgrades. BT increased the minimum distance of customers from the local telephone exchange to six kilometres - opening up its service to another 1m people.

BT's retail arm is mulling whether to sink tens of millions of pounds into new services over the 'last mile' of copper wire that feeds into homes and businesses.

Rival Cable & Wireless will spend £85m on installing its own kit in 400 of BT's telephone exchanges so it can offer improved highspeed access, while ntl has earmarked £65m. BT Retail boss Pierre Danon fears he will lose market share unless he matches the investment.