THE growing use of the Internet and mobile phones helped drive business ahead at BT in the run-up to Christmas.

But despite persistent rumours, the company said it had no immediate plans to increase its stake in the mobile phone group Cellnet.

The Government announced two weeks ago that it would clear the way for BT to take full ownership of Cellnet, in which it currently has a 60 per cent stake.

The clearance will be given as part of plans to allow BT to bid for one of the new mobile phone operating licences which are up for grabs next year.

Robert Brace, BT's group financial director, said BT had had no talks with Cellnet's 40 per cent shareholder, Securicor, over the stake.

Profits before tax at BT for the three months to December 31 were £858 million, down from £1.02 billion in the same period last year.

But the figures for the third quarter last year included an exceptional income of £238 million paid to BT by U.S. group MCI after the collapse of the two companies' merger talks.

Over the full nine months, pre-tax profits were £3.46 billion, up from £2.58 billion on turnover of £13.33 billion, up from £11.93 billion.

The Internet and mobile phone boom has boosted inland calls made to and from BT's fixed line network, but BT has also benefited from the performance of Cellnet, which added 658,000 customers in the last three months of 1998.

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