BT is being tipped in the press for a possible demerger of its BT Wireless division as an alternative to partial flotation. Additionally, fears that the company might have overspent on its purchase of 3G licences weighed heavy on the minds of traders as its share price slipped 2.33 per cent as of 09:20(GMT).
FTSE 100 giant Vodafone, also stumbled after news over the weekend that Singapore Telecom has submitted a rival bid of £7.2bn for Australian mobile phone operator Cable & Wireless Optus. Vodafone was this morning down nearly 1.5 per cent during early trading.
Downbeat news last week from high-tech bellwethers drove Wall Street down by closure on Friday. Nasdaq closed down five per cent after profit warnings from HP and Dell.
The American markets will today have a day of rest for President's Day.