14 January 2008
BT's new national network upgrades will not now be completed until 2011, the firm has announced.
The 21CN project is to be delayed by 12 months after BT fell behind on its line installation schedule, the Times reports.
21CN is based on the firm's burgeoning broadband networks, but would have boosted home phone services as well.
BT also estimated cash savings - due to line networks being "simplified" - of around £1 billion per year.
A spokesman told the newspaper: "We are making good progress in some areas whilst other areas are more challenging, as you might expect with a programme of this scale."
The 21CN project, which BT says is the first of its kind in the world, was announced in 2004.
A year later, the telecoms firm announced that it would go ahead with the network plans without using parts from phone manufacturers Marconi - preferring Asian suppliers Huawei and Fujitsu.
The decision sparked bitter recriminations from the parts supplier at the time - and led to its eventual takeover by Swedish mobile phone makers Ericsson.
Industry insiders who spoke to the Times alleged that the firm's attempt to cut the cheapest possible deals with suppliers has led to 21CN's installation delays.
© 2008 Adfero Ltd
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