The agency secured the business after a pitch against the roster agencies Agency.com and OgilvyOne, and the non-roster agency Detica.
LBi will be briefed to improve BT's online strategy for the next five years as the company looks to achieve its pledge of changing 50 per cent of all consumer transactions from sales to self-service.
The work will involve an extensive web rebuild alongside online advertising aimed at potential customers.
LBi has held the account for the past eight years.
Agency.com handles online ads for BT's broadband, mobile and business services, while OgilvyOne handles DM for the same accounts.
The pitch was handled by Sarah Mitchell, BT's procurement, marketing and brand manager.