3G Licence

British Telecommunications PLC
27 April 2000



                     BT WINS A 3G LICENCE



BT today won a 3G licence in the UK auction providing further

evidence of the company's determination to retain market

leadership in mobile Internet services.

     This licence, coupled with BT's existing GSM spectrum,

will enable the company to deliver first class mobile

multimedia services to its customers at a highly competitive

price.  BT is already the leader in the emerging mobile

Internet market with the Genie portal, and will be first to

market with high speed mobile data (GPRS).

     This licence represents good value for BT's shareholders.

BT expects explosive growth in mobile data services to deliver

a sound return on its investment over the 20-year lifetime of

the licence.

     By winning Licence C at a substantial discount to the

price paid for Licence B, BT has minimised the overall cost of

bringing 3G mobile to its customers without compromising the

range or quality of its services.



     The only benefit of Licences A and B over Licences C, D,

or E is that there may be some cost savings in building a

network.  These savings are way below the premium Licence B

attracted. Moreover it is unlikely there is any cost

difference at all until several years after the launch of 3G,

by which time more spectrum may well be available.

     BT's main auction objective was to secure the best value

licence available at a price that represented a good

investment for its shareholders.  In addition, its strategy

was to maximise its forward competitive position.  BT believes

that ensuring a large differential between Licence B and

Licence C achieves this.

     Sir Peter Bonfield, BT's chief executive, said: 'This was

a high stakes game.  We executed a well thought out and gutsy

strategy which ended with us achieving the best value possible

for BT's customers and shareholders.'