“BT Design” will be responsible for the design and development of new services. “BT Operate” will be responsible for their deployment and operation. Approximately 20,000 BT employees will move into these new units from other parts of the business.

Ben Verwaayen, BT chief executive, said today: “This is the second phase of BT’s transformation. The first phase saw BT shift its focus from narrowband to broadband. This next stage is equally important. It will see BT advance from a 20th century hardware-based company to a 21st century software-based services company. In a software driven world, services will be available in real time and around the globe, harnessing the potential of BT’s 21st Century Network. The changes we are announcing today will drive new standards of excellence and shift power and choice decisively to customers.”