On the up: British Telecom

BRITISH TELECOMMUNICATIONS will announce in the autumn whether it will start offering an advanced phone service that can rival cable networks by carrying video and providing internet access at 10 times the speed of regular phone lines.

The shares rose 4 per cent.

Analysts expect that it will take at least two years for the company to make the service, known as digital subscriber lines, or DSL, available throughout the country.

The advent of interactive television, in which BT is an investor, and fast growth in UK internet use, have boosted demand for networks that can carry more data at higher speeds. DSL would help BT compete with cable companies such as NTL and Cable & Wireless Communications.