Contact: Jo Ouvry
Deloitte
Public Relations
+44 (0) 20 7303 0587

David Tansley, telecommunications partner at Deloitte, comments:
"BT has today announced the completion of the first stage of its 21st century network (21CN) project to build one of the world's most advanced converged networks, replacing the existing Public Switched Telephone Network (PSTN). The network, built using Internet Protocol technology, will deliver a radical reduction in network operating costs for BT. By consolidating separate networks on to a single platform, the network should be more reliable and will be easier to maintain. The upgrade will enable BT and other service providers to offer a whole new range of products and services to consumers & businesses, based on its converged voice and data platform.

"21CN is arguably one of the most ambitious network renewal programmes ever undertaken, and the UK will be one of the first countries to replace its public switch telephone network (PSTN) with a converged IP platform. This is an ambitious plan, unprecedented in scale and complexity and will lead to the UK having one of the most advanced network infrastructures of its kind.

"21CN should see a step change in operational efficiency at BT and the way in which it serves it customers, enabling a range of new applications to be delivered to consumers by BT and other service providers that will use the network. The upgrade will help to address the demand for new, more interactive services, and the increasing demand from consumers for more bandwidth from their network.

"Ultimately the provision of next generation services, such as IPTV, will be more effective on 21CN than the existing infrastructure, and BT will be well positioned to take advantage of the revenue opportunities that these services - depending on their uptake - have the potential to provide.

"Switching off the PSTN and replacing it with IP technology will see the dawn of a new era. Few telecoms operators currently have the wherewithal to implement a capital investment programme of this magnitude, and it may be a number of years before the real benefits are realised.

"Ironically given the scale of the programme, the most significant sign of success from 21CN in the immediate term will be that customers don't notice any change of service at all, but in time many will come to enjoy a more persuasive and engaging consumer experience."

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In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other’s omissions.  Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.  The information contained in this press release is correct at the time of going to press.

Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.

The information contained in this press release is correct at the time of going to press.