My Cd shows a phone symbol and also on steering wheel there is a R/T symbol for phone.What is the implication on seting up the bluetooth phone with this bmw?

There is no bluetooth installed in your model year. But the car
is ''bluetooth ready''. You have to ask your dealer to install the needed parts and program the car to make bluetooth work in it. The price may not be worth the benefit considering the age of your car. Perhaps a cheaper alternative to using bluetooth
but not integrated into your car is original electronics might be better.

BMWs of this model year are all prewired for a module that certain phones could clip into and use the audio system.

Unfortunately it is not Bluetooth and to get the module installed it is nearly $980+ (no idea why! and that is not including the phone)