Marconi and BT in net venture

TELECOMS equipment group Marconi and British Telecom are pushing ahead with a costly new venture for internet enabled phone booths, even though another company abandoned a similar project after it flopped.

Photo-Me International gave up on internet booths earlier this year because of a lack of demand. 'It didn't work all that well,' said Photo-Me. 'They weren't hugely popular. People found it too complicated.'

Just 300 were set up of the 1,000 first planned. Nonetheless, BT and Marconi plan on Wednesday to unveil a joint venture-to convert 30,000 payphones into internet-access devices over five years.

The booths will, they say, allow users to 'surf the net, get e-mails and download videos' while standing in a phone booth, stamping their feet to stay warm.

Marconi will make them and BT install them. The pair expect £800m back in revenues. They are tightlipped about the initial costs, though one source admitted: 'It will be significant.'