The communications industry is changing at breathtaking speed. Amazing new technology is combining with changes in customer demand and the increasing globalisation of business to create a truly global industry.

Customers are increasingly demanding seamless communications to anywhere in the world, from anywhere in the world, at a time that suits them.

The companies that successfully meet this demand will have global reach. The potential market is so enormous and so complex that no one company can hope to do it alone. Which is why mergers, acquisitions and partnerships are so much a feature of our industry today.

With 43 million customers in more than 70 countries, and revenues of £26 billion, Concert will certainly have the necessary size and scale. However, although size and scale get you into the game, they cannot guarantee that you will win it. Success will come to those companies that are rigorously customer-focused, innovative, self-confident, get the best from their people and thrive on genuine competition. Concert will be such a company. Starting with six per cent of a worldwide market, currently worth £400 billion in total and expanding fast, the opportunity for growth is enormous.

I am looking forward immensely to working with MCI in the US local market, which is opening to competition for the first time and will be worth in excess of $100 billion a year. Amongst the opposition will be the Regional Bell Operating Companies (RBOCs) which, until recently, have been comfortable monopolies.

Nor has MCI restricted its activities to the US. Concert will be able to build on MCI's recent activities in Canada and Mexico to offer its customers seamless service across the whole of North America - the world's most lucrative call corridor. And recent alliances with Spain's Telefonica and with Portugal Telecom will enable Concert to increase its presence in Latin America, as well as filling out our already strong position in Europe, where the announcement of BT's investment in CEGETEL in France was one of many highlights of the year.

And then there is the Asia-Pacific region, which in telecommunications terms is the fastest-growing market in the world. Concert will have a significant presence in this region from day one, but we have made no secret of the fact that we want and need to do more. One very exciting development is that BT and NTT have joined forces with two major local companies to bid for the second telecoms licence in Singapore.

On the eve of closing this historic merger, I would like to thank all our shareholders for the confidence that they have shown in BT and assure you, as we look to the future with Concert, we will continue to drive the changes in our industry.

Sir Peter Bonfield Chief Executive