In his first address to BT shareholders since taking over as chairman, Sir Michael Rake stressed the telecoms titan needs to continue its transition from a fixed-line specialist to encompass a comprehensive communications portfolio.

At the company's AGM at the Barbican centre in London, Rake outlined his vision for BT to become a software and services driven company with a global reach. BT's 2007 revenue grew 2 per cent to about £20.7bn and pre-tax profit was £2.5bn, which Rake lauded as a "strong" performance. He added: "Looking forward, we expect to deliver continued growth in revenue, EBITDA, earnings per share and dividends per share in this current financial year."

Rake also took time to cast his eye over the communications industry's regulatory environment. He claimed to be looking forward to increased deregulation in the UK "to reflect the emergence of sustainable competition”. He also called for "a consistent and principles-based approach to regulation wherever we operate around the world."

Alluding to BT's recent announcement that it will be ploughing £1.5bn into the development of ultra-fast broadband Rake said: "It is critical that we have a regulatory regime in place that encourages investment and innovation in next generation networks. We look forward to governments in the EU adopting more appropriate regulatory stances.”

Rake also paid tribute to the achievements of former chief executive Ben Verwaayen, who departed the company last month. Six weeks into replacement Ian Livingston's tenure Rake said: "Ian is determined the next few years will be even more exciting and innovatory than the last few."