Broadband boom boosts BT by pounds 1bn; Firm's record sales.

TELECOMS giants BT said rising demand for broadband had broken the pounds 1billion barrier.

BT said they were connecting a broadband customer every 15 seconds, as they revealed turnover from 'new wave services' in the second quarter.

The boom has seen the company enjoy their fastest underlying revenues growth in nearly three years.

High-speed technology now accounts for 22 per cent of group revenues as BT step up their transition from a fixed-line operator.

A record 607,000 people were linked to broadband in the three months to September 30, boosting BT's total end user base to 3.3million.

BT said pre-tax profits for the quarter were four per cent higher than a year ago at pounds 549million, with underlying turnover up two per cent at pounds 4.6billion.

Chief executive Ben Verwaayen said: 'We are winning business across the globe and responding innovatively to an intense competitive environment, particularly in the UK.'

BT blamed a six per cent fall in fixed-line business on competition, price cuts and measures to encourage people to sign up for broadband.

The group saw revenues eroded by a cut in termination rates - the price mobile firms charge each other and landline operators for putting calls through to customers.

The results come days after BT announced the pounds 520million acquisition of California firm Infonet.

BT disappointed investors with first-quarter figures and yesterday said interim profits were four per cent lower than a year ago at pounds 983million.

Half-year turnover was flat at pounds 9.2billion after accounting for cuts in termination rates.

Moves to adopt a simpler pricing structure to defend their traditional business were having some success, with 8.7million customers signing up for BT Together since July 1.