BT Group has credited its investment in cutting edge technologies for its strongest revenue performance since 2001 despite the continued exodus of fixed-line telephone customers.

The telecoms giant credited its "best underlying revenue growth in nearly three years" on a 36 per cent rise, to £1.03 billion, in takings from so-called new wave technologies, such as broadband and wireless services, in the July-to-September quarter. New wave products attracted 22 per cent of group takings during the quarter compared with 17 per cent a year before.

One million customers had signed up for broadband in less than six months, "which is a new connection every 15 seconds", Ben Verwaayen, the BT chief executive, said.

Sir Christopher Bland, the BT chairman, said: "We continue to invest in our business at a rate well above others in Europe.

"This investment, together with our continuing research and development programmes, are helping BT take a world leading position."

However, turnover from traditional businesses fell by 6 per cent as customers ditched fixed-line phones for mobile services, or defected to rival offerings such as Carphone Warehouse's TalkTalk.

The share held by the former state monopoly of the traditional consumer market fell by 1 percentage point over the year to 65 per cent.

Group revenues were also held back by the cuts to mobile phone termination charges imposed by the telecoms regulator. Turnover rose by 1 per cent to £4.60 billion for the quarter.

Underlying pre-tax profits rose by 4 per cent to £549 million, ahead of City forecasts.

BT shares stood 5.75p higher at 199p in afternoon trade.

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