Broadband milestone for BT

BT Group PLC
20 February 2004

NR0413 February 20, 2004

                     BT HITS FURTHER BROADBAND MILESTONE

BT today announced it had passed its target of two million wholesale broadband
connections just two months into the calendar year for which it was set. The
latest million connections have come in little more than eight months.

Ben Verwaayen, BT chief executive said: "The phenomenal growth we are now seeing
in the broadband market is excellent news for the whole economy, and for the UK
broadband industry in general. Over the next few years we will all have to
continue to work hard to maintain this momentum, but I have no doubt that this
is absolutely achievable. "

More than 700,000 people have signed up with BT's world leading registration
scheme since it was set up in July 2002. It has helped match investment to
demand and has enabled BT to roll out broadband at a much faster pace than would
otherwise have been possible. More than 85 per cent of UK homes and businesses
are now connected to broadband enabled exchanges and the figure is expected to
reach 90 per cent by the summer. Currently customers connected to 2,345
exchanges can get broadband and more than 800 are in the process of being
upgraded, including those in partnerships.

The past eighteen months have seen BT put broadband at the heart of its strategy
with several significant developments:

   • two major wholesale broadband price cuts helping to make UK retail prices
     among the best value in Europe
   • a registration scheme to extend broadband to areas where there is proven
     demand
   • introduction of BT Broadband, a high speed direct internet access product
   • the first delivery in Europe of a broadband content and applications
     partnership, with Yahoo!
   • trigger levels set that could bring broadband within reach of more than
     99 per cent of UK homes by next year
   • regional partnerships to stimulate demand and extend broadband
     availability.

Broadband Facts

   • The UK is the most competitive broadband market in the world. There are
     more than 150 ADSL providers - and cable companies have about a 40 per cent
     market share
   • Broadband in the UK costs only the equivalent of nine SMS text messages
     (or less than half a pint of beer) a day
   • BT's registration and trigger scheme - to identify where demand is
     strongest - is working, with more than 1,000 exchanges enabled so far - and
     other countries are now beginning similar schemes
   • BT has worked with more than 600 local action groups to stimulate demand
     for broadband and reach their local trigger levels. 700,000 customers have
     now registered their interest in broadband and more than one million
     leaflets have been distributed to promote the scheme and boost demand.
   • BT is pushing to make broadband available as widely as possible through,
     for example, a number of partnerships with regional and local stakeholders
     to deliver ADSL broadband or to increase take-up.
   • BT was considered the most innovative telecommunications company in the
     EU in its approach to delivering rural broadband by the Yankee Group
   • In the time you took to read these broadband facts, another 10 people
     have signed up for broadband in the UK


Inquiries about this news release should be made to the BT Group Newsroom on its
24-hour number: 020 7356 5369. From outside the UK, dial + 44 20 7356 5369. All
BT Group news releases can be accessed at our web site:
                           www.btplc.com/mediacentre



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