British Telecom roared back into favour with the stock market yesterday as it announced plans to take the mobile Internet to the masses.
The company said it would offer wireless Web phones for £99.99 sterling (#163.33) up front plus £10 a month and expected to sell 500,000 of the WAP (wireless application protocol) handsets between April and June.
The news, which coincided with a "strong buy" recommendation from Deutsche Bank, took shares up 20 per cent at one stage, putting them back above their level before they plunged following disappointing results February 2nd. They ended the day with a gain of just more than 12 per cent at £13.15.
Analysts said the mobile Internet plans, the first mass rollout in the UK, underpinned the change in sentiment on the stock.
BT said it had overcome the shortage of phones by buying almost every compatible handset in the world, primarily from Mitsubishi, but also including Siemens AG, Alcatel and other companies.
BT also announced plans to launch global mobile portal services with its international partners this summer as part of a £160 million (#261 million) investment in WAP.
The company named more than 30 partners that will provide content for the UK service, including broadcaster BSkyB Plc, bank First Direct and travel website Travelocity.
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