A History of BT

A History of BT

The history of British Telecom goes all the way back to the very first telecommunication companies in the UK and, as such, BT claims that it is the oldest telecommunications company in the world. Back then, things were very different from what we think of now from BT telephone systems, but these initial steps were hugely important in the development of the industry. The Electric Telegraph Company was formed all the way back in 1846 and, over the years, with amalgamations and companies collapsing or being taken over, the remaining companies were placed under state control. The Post Office had responsibility for the group at this time. Although later on a privatised company, British Telecommunications PLC was formed and this became the company that evolved into the BT Group PLC, a company which currently serves in 170 countries.

Some notable moments include:

  • 1891 when the first link between London and Paris created an international service
  • 1896 saw wireless signals being sent for the first time with respect to telephone communication and in 1897, these signals were being sent for up to 9 miles
  • 1912 The Post Office takes over NTC and nationalises Britain’s telephone system and this year saw the introduction of an automatic exchange, allowing customers to call without going through an operator
  • 1936 sees the introduction of the speaking clock while 1937 sees the 999 service introduced in London, Glasgow in 1938 and in other major towns and cities in 1946
  • 1963 saw international direct dialling take place for the first time between London and Paris and in 1970, this occurred for the first time between London and New York.

The 1977 Carter Committee Report recommended that the telecommunications element be removed from the Post Office and, while at first this took place in name only, the British Telecommunications Act of 1981 saw responsibility for all telecommunication services in the UK to a new corporation. In July of 1982, the Government announced it was selling up to 51% of shares in British Telecom to private investors, which would privatise the company. This was confirmed with the Telecommunications Act of 1984 and in November of 1984, over 50% of shares in the company were sold to the general public.

The ‘90s saw major changes in the industry

The next big step for the company came in 1991 when a Government white paper paved the way for an open market in the telecommunications sector. In the same year, the firm changed their name to BT and unveiled a new corporate and organisational structure. In 1994, BT launched Concert Communications Services in conjunction with CMCI Communications Corporation, a joint venture said to be worth $1bn. There were plans to create a telecommunications company with global reached based in London, but in 1997 the company decided to sell their stake of MCI to WorldCom for $7bn, bringing this project to an end.

Through a number of business acquisitions, BT has grown to a leading global provider of communications for voice and data network services. Purchases of companies like Albacom, the second biggest telecoms firm in Italy, has enabled the firm to maintain and supply networked solutions across the world. BT has also worked closely with industry regulator Ofcom to develop a better regulatory framework for the firm and UK businesses in general. In 2006, Openreach started operating and this company manages the telecommunications structure in the UK, considering BT as an equal with other operations in the industry.

There are five businesses currently in BT Group, which are:

  • Openreach
  • BT Global Services
  • BT Business
  • BT Consumer
  • BT Wholesale

While the industry has changed considerable since 1846, it would be fair to say that BT telephone systems have changed dramatically since the 1980s and ‘90s. The way we communicate has been transformed and yet through these changes, BT remains at the heart of communication for so many people around the world.