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The seamless upgrades mark the first phase of the national roll-out of 21CN, BT's next-generation IP-based network. The telco expects 21CN to provide a variety of benefits including new voice, data, broadband and multimedia services that will be delivered quicker and cheaper than before.

BT has re-built around 10 per cent of the UK's

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core national communications infrastructure, installed 21CN equipment at over 100 sites across the UK and laying more than 2,300km of fibre optic cable in South Wales.

Paul Reynolds, chief executive of BT Wholesale, described the launch of 21CN as symbolic and momentous.

'Years of research and development, network build and design, rigorous trials and testing, together with open collaboration with the communications industry have culminated in this historic moment,' he said. 'A network transformation on this scale has not been attempted anywhere else in the world - it's happening now in South Wales, and the rest of the UK will follow over the next few years.'

BT customers in Cardiff, Bridgend and the Pontypridd area will be the next to have their voice and broadband services transferred to 21CN and by the end of summer 2007, BT expects to have migrated around 350,000 customer lines across South Wales.