Broadband Migration

BT Group PLC
28 April 2004





NR0423
                               April 28, 2004

                    BT REDUCES MIGRATION COSTS FOR BROADBAND

BT is set to introduce greater flexibility into the broadband market by reducing
the prices charged to service providers when they sign up customers from other
suppliers and by standardising those prices where possible regardless of which
wholesale product the supplier uses.

BT is also making it cheaper for service providers to move their existing
customer base from a BT IPStream based service to one based on BT DataStream.
The changes are in response to customer demand.

Migration prices will fall to £11 per end user from May 1. The new price
represents significant savings for service providers. The cost of switching a
customer from one BT IPStream based supplier to another has fallen from £35 per
end user, whereas the cost of moving a customer from a BT IPStream based service
to one based on BT DataStream has come down from £50 per end user.

The price cut reflects costs savings brought about by the early stages of a
project to introduce an automated migrations process. This process will be
implemented in stages during the next year.

Bruce Stanford, director of products at BT Wholesale said: "Today's price cut
will introduce greater flexibility into the broadband market. The UK is already
one of the most competitive broadband markets in the world and this move will
make it even more competitive by making it easier for service providers to
attract new customers.

"These major price reductions reflect the cost savings brought about by the
early stages of a BT Wholesale project to enhance our customers' experience by
introducing further automation into the migrations process. The pricing changes
reflect the changing nature of the UK broadband market and the fact that service
providers are choosing to use a range of different wholesale products. As a
result, BT is developing processes so that customers can migrate from one
service to another whether it be from IPStream to DataStream or between
different service providers. These processes will take time to implement and
further announcements will be made over the coming months."



                                  -     ends -



Notes to Editors:

BT IPStream is a wholesale ADSL product sold to internet service providers
(ISPs). In simple terms, it is an end-to-end wholesale broadband service that
ISPs use to sell on to their end user customers.



BT DataStream is an ATM transport product which tends to be bought by other
network operators. These alternative network operators can then use their own
ATM and IP networks to sell services directly or indirectly through their ISP
customers to consumers and businesses.





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