BT announces massive restructuring

NEWS BT is to split into a number of standalone business units in an effort to ensure future growth and almost certainly increase its market worth. At home, it will reorganise into units focused on retail and wholesale fixed-line customers. Around the world, it will present itself as an IP - and data-centric wholesale business, dubbed Ignite; a mass market Internet business called Btopenworld; BT Wireless, embracing its mobile businesses around the world; and Yell, a directory services operation formerly known as Yellow Pages. Similar restructuring by other European telcos - notably Spain's Telefonica, and imminently, Deutsche Telekom - has unlocked the value of high-growth Internet and mobile telephony assets, and a separate listing of BT Cellnet or BT Internet has been widely expected for some time. BT said it will start by floating Yell. The telco has also announced the purchase of the remaining shares in Telfort, its Dutch fixed-line and mobile venture, for £1.16bn, and the retirement of Bill Cockburn, BT UK's MD.