Broadband roadmap

BT Group PLC
19 November 2002

                                                               November 19, 2002

                         BT SETS OUT BROADBAND ROADMAP

BT today said that the company had a roadmap that would see broadband reach more
than 80 per cent of the country in the next three years. In a wide-ranging
speech to delegates at the e-envoy's e-summit in London, BT board director
Pierre Danon said that having put broadband at the heart of its strategy, BT was
now looking to extend the number of areas where broadband would be available.

Mr Danon said: "Broadband is well and truly at the heart of BT and we are
absolutely committed to our target of one million broadband connections by next
summer. We've made products available, made sure the price is right, and we are
working hard on customer satisfaction. Our marketing campaign, one of the
biggest ever seen in this country, has created a huge demand for broadband for
BT and other internet service providers.

"We've now had more than 200,000 registrations of interest for our registration
scheme. That interest is helping to push our broadband exchange enabling scheme
which kicked into action with Todmorden.

"Seventeen others are currently being enabled and we now expect to upgrade
exchanges to broadband at the equivalent rate of one a day - all thanks to
public demand."

Mr Danon, who attended the summit alongside Alison Ritchie, BT's new chief
broadband officer, also reported on the success of regional partnership
initiatives such as ACT NOW in Cornwall. "More partnerships are now being
developed and we have recently announced our initiative with Kent County Council
aiming at connecting schools and homes in the county. These initiatives which
require active support from the government will add to the momentum created at a
national level by the advertising campaign."

Based on the current momentum and assuming the success of these regional
initiatives, BT believes that the number of households living in broadband
enabled areas can be moved over 80 per cent.

Mr Danon explained also how BT was working to overcome the technical reasons
which meant that some people who lived in broadband enabled exchange areas
currently could not get a service. He said: "Our view is that our experts can
find many innovative ways of extending the number of households who live in
enabled areas who will be able to get it.



"For example, we are working on managing the excessive sound interference level
that appears when a household is too far from an enabled exchange. These
solutions will also increase the number of people who will be able to enjoy
broadband DSL.

"In addition, there will be other innovative technological and business model
advances such as satellite, wireless broadband and so-called mini DSLAMs which
we believe will further increase the number of households who live in broadband
enabled areas even higher. "

"In fact, altogether we believe that by mid 2005 broadband services could be
available to around 90 per cent of households in the country."

In his presentation Mr Danon said that to achieve this situation would also
require effort from other interested parties. He said: "To make our aims a
reality will mean working in partnership with others in the industry and, in
particular, with the government at all levels. We would also welcome the support
of the government by them putting into practice many of the original and
exciting uses they themselves have envisaged for broadband.

"And finally we believe that going forward there's a need for smarter regulation
- regulation that evolves to take into account new areas of competition and new
issues such as content rights management. Broadband is at the heart of BT. With
the right environment and right momentum, broadband truly can be at the heart of
the country."

Mr Danon finished by saying: "We recognise that the benefits of the new
communications revolution are too great to leave people behind, but that there
are technological limits to providing affordable broadband for all. So today we
are also announcing a new alternative high speed internet access product for
those who would not be able to get broadband. Our new "midband" product will
begin trials in the Spring. It will provide an "always-on" email facility with
fast internet access at up to 128K when needed and will be available quickly to
97 per cent of the UK population."

In summary, Alison Ritchie added: "No one should underestimate how serious
we are about broadband. We're driving demand through the biggest ever UK
advertising campaign. We're pushing the bounds of every technological solution.
We're doing more than anyone to bring broadband to the country. And by working
with partners and government we can and will achieve the widest possible
coverage."

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