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To: Jack Bridges who wrote (184)	7/25/1999 7:47:00 PM
From: Jenne	Read Replies (2) \| Respond to of 13582

BT aims to be first with global mobile TWO key steps are being planned by British Telecommunications in its strategy to establish itself as a global leader in mobile telecoms, writes Andrew Lorenz. Overseas, BT and its ally AT&T aim to develop the first seamless global mobile telecoms service. At home, BT, led by Sir Peter Bonfield, chief executive, plans to bid by itself, rather than through Cellnet, for a next-generation mobile-phone licence. This could trigger a £2.8 billion buyout by BT of Securicor's 40% stake in Cellnet. BT and AT&T, which have allied their international fixed-line operations to serve big businesses, aim to beat Vodafone AirTouch, the British-American combine, to the ultimate goal for mobile operators - to satisfy customer demand for a single worldwide service and billing system. Vodafone is already looking to fill gaps in its international operations and is keen to buy Cable & Wireless's minority interests in the Japanese mobile market. The BT-AT&T global service would weld AT&T's transnational American network with BT's European and Asian interests - which include stakes in Hong Kong, Singaporean and South Korean operators - and the two companies' recent investments in Japan. In Britain, BT is close to a decision to bid by itself for a UMTS licence, which allows voice, data, video and internet transmission. BT is unlikely to bid through Cellnet, its 60%-owned offshoot. The move, if confirmed, will have big implications for Securicor, which owns the other 40%. Although Cellnet would act as subcontractor to BT, gain ing a lucrative contract to run the new network, its role would be seen by the City as a second-best to itself owning the licence. However, a BT move to go it alone for a UMTS licence could break the log jam that has prevented BT and Securicor agreeing terms under which BT would buy out Securicor. BT is this week expected to report a first-quarter surge in profits. Investec Henderson Crosthwaite is forecasting annualised volume growth of 11%, pre-tax profits up from £723m to £813m and earnings up 23%.