Broadband price cuts

BT Group PLC
30 June 2004


News release - BT Group plc

June,30 2004

   BT LAUNCHES BEST EVER VALUE BROADBAND WITH PRICE CUTS OF UP TO 25 PER CENT

BT is to slash the rental prices for its family of consumer broadband products
by up to a massive 25 per cent.
The price reductions, available to both new and existing broadband customers,
will be effective from 1st July 2004.
The prices for the Broadband from BT family of products will now be as follows:

   • BT Broadband (512k) - down from £27 per month to £24.99
   • BT Yahoo! Broadband 512k - down from £29.99 per month to £26.99
   • BT Yahoo! Broadband 1Mb - down from £40.99 per month to £29.99,
   • BT Broadband Basic (512k), remains at £19.99 per month, now with free
    modem and connection.

All products will continue to offer free connection and modem when purchased
online.*

Until now, lighter users of broadband have been paying the same price as a small
minority of exceptionally high users. To resolve this, BT will be introducing
fair usage allowances, enabling us to offer our customers lower monthly prices.

The new monthly allowances have been set at levels significantly higher than the
usage of the overwhelming majority of broadband customers. For example, the 512k
services, featuring a 15GB allowance, will still enable customers to do all of
the following each month:

   • Surf the internet for 15 hours every day,
   • Send / receive 250 JPEG pictures via e-mail per week,
   • Download 250 music tracks and three hours of video clips per week,
   • Listen to online radio for fifteen hours every day,
   • Send / receive 3000 emails** per week.

With the exception of BT Broadband Basic, the limits will only be advisory until
Jan 2005.
Duncan Ingram, MD of BTOpenworld, said: "Today's announcement gives customers
the best ever value broadband from a name you can trust.
"What makes BT's Broadband Family different from the competition is the unique
combination of speed, choice, content, and service: speed, in that all our
products offer full broadband (512k and above). With 1Mb now extremely
affordable and £39.00 a year cheaper that NTL, we have one of the best priced
1Mb products in the market; choice, in that we have a full range of products to
meet different customer needs; content, with evolving applications and content
supplied by our world leading partner Yahoo!
And service, with the reassuring back up of BT's extensive service organisation.
"Today's price cuts and yesterday's announcement to extend broadband coverage to
99.6 % of the UK by August 2005, shows BT's commitment to bring broadband to as
wide an audience as possible. Our new pricing packages bring broadband
technology within reach of even more UK consumers, helping us play our part in
making Broadband Britain a reality."
"And with over 1 million Retail Broadband customers already, BT is fast becoming
'The Broadband of Choice' in the UK".

Notes to Editors
:
Product                 Connection   Modem      Monthly Rental        Usage
BT Broadband Basic      Free         Free                    £19.99   1GB
BT Broadband            Free         Free                    £24.99   15GB
BT Yahoo! Broadband     Free         Free                    £26.99   15GB
BT Broadband 1Mb           -          -                      £28.99   30GB
BT Yahoo! Broadband 1Mb Free         Free                    £29.99   30GB

* Customers ordering offline pay £25.00 for the modem
** emails with no attachments

BT Group plc is the listed holding company for an integrated group of businesses
providing voice and data services in the UK and overseas, particularly in 
Europe, but also in the Americas and the Asia Pacific region.  British 
Telecommunications plc, a wholly-owned subsidiary of BT Group plc, holds 
virtually all businesses and assets of the BT group.

BT is one of Europe's leading providers of telecommunications services.  Its
 principal activities include local, national and international 
telecommunications services, higher-value broadband and internet products and 
services, and IT solutions.  In the UK, BT serves over 20 million business and 
residential customers with more than 29 million exchange lines, as well as 
providing network services to other licensed operators.

BT consists principally of three lines of business:

"     BT Retail, serving businesses and residential customers and 
including BT Openworld, one of the UK's leading ISPs.

"     BT Wholesale, providing network services and solutions within the UK,
 including ADSL, conveyance, transit, bulk delivery of private circuits, frame
 relay and ISDN connections.

"     BT Global Services, BT's managed services and solutions provider, 
serving multi-site organisations worldwide.  Its core target market is the top
 10,000 global multi-site organisations with European operations.


There are a number of other businesses within the BT group, including BT Exact,
 an internationally renowned centre of excellence in IT and networking 
technologies. It is also BT's technology and research and development business.

In the year ended 31 March 2004, BT's turnover was £18,519million with profit 
before goodwill amortisation, exceptional items and taxation of £2,016million.

For more information, visit www.bt.com






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