Lol, ow how ill informed we are on 21CN.
Its not the cheapest option by any means, IP backhaul still has a high Capex and Opex compared to the older (and already there) TDM systems. Its also not as reliable to!). THye could eaily install mapper cards in the current setup at low cost to take the IP based traffic from newer soft swicth based exchange setups!
21CN is a dogs arse of a setup as there are to many vendors supplying the kit and some of the kit was not mature when selected!
I on the other hand dont mind, whilst 21CN is falling over, BT are buying loads of OMS1600 to keep shoring the TDM setup up which is my baby (or was, I am now running development of the next gen layer 2/3 kit)
They are looking at medium term reductions - at lot of the kit is getting way past its sell-by date, and because of the mis-mash of bits bolted on, a sod to support, invariably involving lots of different teams to resolve relatively simplistic issues (Not that 21CN will solve that last issue from what I've seen of it so far

).
When the decision was made, they obviously believed that IP would become the cheaper transit technology, and have an added benefit of being about to reduce capital expenditure renewing the tired old X and Y exchanges (an early plan was to basically stick a Cisco badged HP DL380 in each exchange to do the work of the switching part of the exchange, just leaving simplistic analogue to VoIP linecards).
The reality seems to be, from someone now sitting on the periphery, that in true Civil Service style, its become a bloody mess, as they always insist on multiple vendors. And with it being immature technology, interworking between the vendors equipment seems to had introduced other problems.
It can work, in fact it does work reasonably well. It work probably have worked better and easier had it been managed better earlier on.
They decided an entire IP transport was the way to go, allowing a single transit network. Were they jumping on a bandwagon? Yes, probably. Though remember, BT have massive amounts of (different) VoIP, and it would appear that cost is very beneficial.