As a service provider, BT has been known as a trusted brand, and for their good distribution network. Now, by switching from traditional voice and embracing VoIP, it'd like to be known for innovation. That aspiration can only be fulfilled by forming alliances with partners. The telecom has changed its philosophy from viewing voice as PSTN-embedded in the network, to perceiving voice as an application on the outside of the network. Even though a simple concept, it has profound implications on the telecom's investment and source of income.

BT is not a telecom company anymore. It has less than 20% of its revenue coming from traditional voice, vis-à-vis other telecom companies that make 70% or more from that market. The enterprise has sold off its mobile license, and instead invested $20 billion in an end-to-end IP network for the UK, is covering 12 WiFi cities, and has increased its customer base for its VoIP services from less than 100,000 to over a million in one year. The popularity of its BT Fusion, Softphone and IPTV initiatives have lent confidence that the enterprise is ready to leverage the evolution in the handset technology to exploit new opportunities for other applications in the VoIP landscape.

Jerry Thompson, Chief of Applications at British Telecom, talks about BT's transition from being a traditional voice-based telecommunications enterprise to a VoIP-based Internet centric service provider.