British Telecom reports second quarter results on Thursday and, according to Mike Williams, telecoms analyst at Deutsche Bank, the figures will mark a pivotal moment in the group's history.

Although news on the dividend is likely to grab the headlines - Mr Williams feels there is a 30% chance that BT will signal plans to reduce the payment - it will be the conclusions of the long-awaited strategic review that will determine the direction of BT's shares.

Mr Williams reckons BT will reveal plans to sell a number of non-core assets (non-core being classified as anything outside Japan and Europe). High on the hit list is LG in Korea and Binariang in Malaysia. Alongside the disposals he says there will be strategic initiatives including a demerger of domestic retail and wholesale operations and a commitment to float BT Cellnet.

BT shares closed 12p weaker at 750p last night.