BT Set To Become A Media Company

British Telecom is considering plans to extend its interests into the media business and could be making and distributing its own television services within the next two years, according to chairman Sir Christopher Bland.

Writing in the Sunday Times last weekend Bland said that it was probable that BT would expand its existing network to distribute television in an attempt to compete with cable TV companies NTL and Telewest.

Bland said that one of BT’s key objectives for 2002 was to define its relationship with the television industry. He identified two main options for the future, saying: “At one extreme, we can be a distributor of other people’s programmes, just as existing companies do. On the other extreme, we can build a full integrated model like BSkyB, which makes and distributes its own programmes over its own networks.”

He wrote: “Nothing is excluded, including taking shareholdings in content producers” and said that the BT was ready to invest in upgrading its infrastructure over the next two years to offer customers telephone, high-speed internet and television services.

He acknowledged that NTL and Telewest posed a threat to BT and said: “If cable companies can successfully offer that triple-play, they will erode our business.”

NTL and Telewest have been moving to consolidate their position in the UK market and recently announced plans to develop a joint interactive television service that will link programming and interactive services such as shopping, betting and games over a high-speed cable network (see NTL And Telewest To Launch iTV Service).

BT: 0207 356 5000 www.bt.co.uk

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