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The BT brand has been saved from the consumer scrap heap as its chief executive plots a bold strategy overhaul.
The former telecoms monopoly announced in 2022 that it was ditching BT as its “flagship” brand for millions of customers to focus on selling broadband and mobile services under the EE name.
However, these plans have now been shelved by Allison Kirkby, its chief executive, amid concerns that dropping the historic brand risked alienating older customers.
As a result, both the BT and EE brands will continue to be used side by side.
The change comes amid pressure from Sunil Bharti Mittal, the Indian tycoon who became BT’s largest shareholder last summer after taking a stake of almost 25pc.
Mr Mittal has taken a hands-on approach to his investment, summoning executives for two days of strategy meetings last month. He also met with Ms Kirkby during the Mobile World Congress industry conference in Barcelona this week.
Ms Kirkby is seeking to refocus the company on its core offering and has already scaled back a previously announced move into new products and services.
In 2023, the company said it would use the EE brand to start selling consumer electronics such as games consoles
Meanwhile, BT will step up its investment in Plusnet, its value broadband brand.
The group recently stopped offering Plusnet mobile services, but executives are understood to be considering the launch of a new discount mobile brand as they gear up for tougher competition following the £15bn merger of rivals Vodafone and Three.
The moves come as Marc Allera, BT’s consumer boss who spearheaded the shift to EE in recent years, heads for the exit. He will leave the company later this month after missing out on the top job to Ms Kirkby a year ago.
The BT chief has appointed Claire Gillies, formerly a senior executive at telecoms group Bell Canada, as the new head of the company’s consumer division. Her appointment forms part of a wider leadership overhaul that includes the hiring of Jon James as new business boss.
The move to retain the BT brand will likely be welcomed by large numbers of Britons who fondly recall the BT phonebook and TV ads featuring the likes of Bob Hoskins, Maureen Lipman and even ET.
Formerly known as British Telecom, BT was privatised under Margaret Thatcher in 1982 and shortened its name just under a decade later.
Under previous plans, BT would have remained the primary brand for business customers and the group’s corporate name, but consumers would have been encouraged to switch to EE.
The company previously said it was prioritising the EE brand because of its reputation for good mobile connectivity and its popularity across different age groups.