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British Telecom rings up Marconi for deal

February 19, 2002

LONDON - Web-enhanced payphone kiosks remain a significant player in British Telecom's (NYSE: BTY) future plans. The telecommunications company on Dec. 12 announced a strategic partnership with Marconi Interactive Systems that will lead to the deployment of 28,000 Internet payphones throughout the United Kingdom by 2007.

The new phones will feature full Internet access, e-mail access, and text messaging. Featuring a built-in keyboard and trackerball, the kiosks will also offer video images, maps, directions, and retail advertising.

The roll out will begin in April of 2002, with 3,000 terminals deployed within a year. The payphones will be deployed in shopping centers, railway and subway stations, and airports. Marconi will fund the terminals, with British Telecom managing and marketing the network. The two companies will split revenue, with British Telecom estimating its share will reach about $72 million by fiscal year 2004-2005.

British Telecom's project is a continuation of other Web payphone deployments it has unveiled in the past year (See story: British Telecommunications unveils new kiosks). The project's unveiling comes as the British government is promoting Internet access initiatives nationwide.

"We are continually striving to meet our customers changing communications needs," BT Retail chief executive officer Pierre Danon said in a news release, "and although more than 20 million adults have logged on to the Internet many people are still excluded from using the web because they don't have access to a PC."


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