Editing BT Group (section)

=== 2001 debt crisis and sale, demerger ===
By 2001, BT had a debt of £30 billion, much of which was acquired during the bidding round for the [[3G|3rd generation mobile telephony]] (commonly known as 3G) licences.<ref>{{cite news | url=http://news.bbc.co.uk/1/hi/business/1322290.stm | work=BBC News | title=BT attacks debt mountain | date=10 May 2001 | access-date=27 April 2010 | archive-url=https://web.archive.org/web/20070823235812/http://news.bbc.co.uk/1/hi/business/1322290.stm | archive-date=23 August 2007 | url-status=live }}</ref> It had also failed in its series of proposed global mergers, and the funds flowing from its then virtual monopoly of the UK market place had been largely removed. It was also headed by two executives who had little support from the [[London Stock Exchange]], particularly in light of a 60% drop in share price in sixteen months.<ref>{{cite news | url=http://news.bbc.co.uk/1/hi/business/1297641.stm | work=BBC News | title=Vallance resigns from BT | date=26 April 2001 | access-date=27 April 2010 | archive-url=https://web.archive.org/web/20070326014439/http://news.bbc.co.uk/1/hi/business/1297641.stm | archive-date=26 March 2007 | url-status=live }}</ref>

[[Philip Hampton]] joined as CFO, and in April 2001 Sir Iain Vallance was replaced as chairman by recognised turn around expert [[Sir Christopher Bland]].<ref>{{cite news|url=https://www.standard.co.uk/business/james-ashton-next-bt-chair-will-need-todo-list-like-sir-christopher-bland-s-a3453281.html|title=James Ashton: Next BT chair will need to-do list like Sir Christopher Bland's|newspaper=Evening Standard|date=30 January 2017|access-date=2 March 2019|archive-url=https://web.archive.org/web/20190306045037/https://www.standard.co.uk/business/james-ashton-next-bt-chair-will-need-todo-list-like-sir-christopher-bland-s-a3453281.html|archive-date=6 March 2019|url-status=live}}</ref> In May 2001, BT carried out corporate Europe's largest ever [[rights issue]], allowing it to raise £5.9 billion.<ref>{{cite news|url=http://news.bbc.co.uk/2/hi/business/1394128.stm|title=BT wraps up share sale|date=18 June 2001|via=news.bbc.co.uk|access-date=14 March 2019|archive-url=https://web.archive.org/web/20181123023845/http://news.bbc.co.uk/2/hi/business/1394128.stm|archive-date=23 November 2018|url-status=live}}</ref> A few days before, it sold stakes in [[Japan Telecom]], in mobile operator J-Phone Communications, and in [[Airtel]] of India to [[Vodafone]].<ref>{{cite news|url=http://news.bbc.co.uk/2/hi/business/1306080.stm|title=BT retreats from Japan and Spain|date=1 May 2001|via=news.bbc.co.uk|access-date=14 March 2019|archive-url=https://web.archive.org/web/20181123023452/http://news.bbc.co.uk/2/hi/business/1306080.stm|archive-date=23 November 2018|url-status=live}}</ref> In June 2001, BT's directory business was sold as [[Yell Group]] to a combination of [[private equity]] firms [[Apax Partners]] and [[Hicks, Muse, Tate & Furst]] for £2.1 billion.<ref>{{cite news|url=http://news.bbc.co.uk/2/hi/business/1350672.stm|title=BT sells Yell for £2.1bn|date=27 May 2001|via=news.bbc.co.uk|access-date=14 March 2019|archive-url=https://web.archive.org/web/20181123023822/http://news.bbc.co.uk/2/hi/business/1350672.stm|archive-date=23 November 2018|url-status=live}}</ref>

A demerger followed in November 2001, when the former mobile telecommunications business of BT, BT Cellnet, was hived off as a separate business named "[[O2 (UK)|mmO2]]".<ref>{{cite web|url=https://www.zdnet.com/|title=Technology News, Analysis, Comments and Product Reviews for IT Professionals|website=ZDNet|access-date=14 March 2019|archive-url=https://web.archive.org/web/20190310154122/https://www.zdnet.com/|archive-date=10 March 2019|url-status=live}}</ref> This included BT owned or operated networks in other countries, including BT Cellnet (UK), Esat Digifone (Ireland), and Viag Interkom (Germany). All networks now owned or operated by mmO2 (except [[Manx Telecom]]) were renamed as O2. The de-merger was accomplished via a share-swap, all British Telecommunications plc shareholders received one mmO2 plc and one BT Group plc (of which British Telecommunications is now a wholly owned subsidiary) share for each share they owned. British Telecommunications plc was de-listed on 16 November, and the two new companies started trading on 19 November.<ref>{{cite news |title=BT approves mobiles spin-off |url=http://news.bbc.co.uk/1/hi/business/1615100.stm |work=BBC News Online |date=23 October 2001 |access-date=7 February 2013 |archive-url=https://web.archive.org/web/20040628041135/http://news.bbc.co.uk/1/hi/business/1615100.stm |archive-date=28 June 2004 |url-status=live }}</ref>