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BT was created in 1981 when the telecommunications network arm of the General Post Office (GPO) was spun-off as a separate entity. The company was transformed from a state-owned enterprise to a public limited company in 1984, under the aegis of the Telecommunications Act of 1984, and shares in the business were sold in a series of public offerings between 1984 and 1993. All of BT's shares are now publicly-traded. At present, BT functions as the UK's incumbent fixed-line telecommunications operator.
Competition for BT was established in the form of a second operator - the short-lived Mercury Communications, controlled by Cable & Wireless plc (C&W) - in 1981, but it was not until early-1991 that the UK telecommunications market was liberalised at all levels. A corporate reorganisation was implemented in 2000, resulting in the creation of separate service provider units which could be spun-off or partially-privatised in order to generate cash that would reduce the company's debt burden.
BT is currently without a major strategic partner in the global telecommunications market, following the closure of Concert, its joint venture with AT&T, in early-2002.
BT's principal activities include local, national, and international telecommunications services, broadband and Internet products and services, and IT solutions. The company spun off its wireless business in 2001 but has recently taken steps to re-enter the mobile service sector and develop converged fixed/mobile communications solutions in collaboration with other mobile network operators.
Currently, BT has three major business groups including BT Retail, BT Wholesale, and BT Global Services. The other business groups of the company are BT Openworld and BT Exact. Also, the company classifies its business across its customer segments into consumer, business, major corporate, wholesale, and other.
