The Anglo File: Followers Losing Faith in British Telecom

LONDON -- British Telecom's (BTY Quote) decision early today to buy out E.ON's stake in its joint venture Viag Interkom is further proof of the faith the telco has in the future of wireless. Investors, however, appear to lack similar conviction in British Telecom.

"There's a lot of uncertainty about [third-generation mobile telephony]; British Telecom's debt is increasing; and there's not a lot of confidence in management," was how one analyst summed up the telco's troubles.

British Telecom announced Thursday morning it is buying German utility E.ON's 45% stake in their Viag Interkom joint venture. E.ON said it was selling so that it could concentrate on its core energy operations. But it is widely assumed that E.ON believed the 8.45 billion euros ($7.69 billion) Viag Interkom bid for a German, third-generation mobile-phone license was too much and told British Telecom it wanted out of the venture. ...