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Leading telecoms firm BT has created a new business arm to target customer acquisitions in "an increasingly competitive" broadband arena.

BT Consumer will also focus on home phone and TV growth, as BT Retail splits into two.

The other offshoot - BT Business - will be responsible for meeting the communication needs of UK companies, particularly small and medium-sized enterprises.

John Petter, currently Managing Director of the consumer unit within BT Retail, will take on the role of Chief Executive at BT Consumer.

He said he is "thrilled" to have been given the opportunity to lead the new consumer division of the broadband provider.

"BT is in a four-way tussle with Sky, Virgin and TalkTalk for broadband customers and we are at the start of an exciting journey with BT Sport," he stated.

"There has never been a better time to be a consumer and we plan to up the ante in the coming years."

Gavin Patterson, Chief Executive at BT Retail, said the company has "delivered well for many years".

However, he said it is time to split the business into two, to reflect "the intensely competitive nature of the consumer market" and BT's "strong ambitions" in the business space.

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