CHARGES FOR INTERNET ACCESS

British Telecommunications PLC
27 November 2000


November 27, 2000

BT BEMUSED BY OFTEL AS REGULATOR QUESTIONS SIMPLER CHARGES FOR INTERNET ACCESS

BT today said it was bemused by Oftel's decision to investigate the company's
innovative new internet pricing packages under the Competition Act.

     BT last month announced radical changes to its prices, creating exciting
new options that include, for the first time, the option of combining
unmetered evening and weekend calls to the internet and unlimited local
off-peak calls*. The changes, introduced in response to overwhelming public
demand, come into effect this Friday.

Sir Peter Bonfield, BT chief executive, said: 'These packages represent
excellent news for consumers. BT is offering even better value for money in
the area of internet access.

'Customers told us they wanted clearly understood, simple, pricing packages:
we are offering them that clarity.

'They told us they want lower prices: we are offering them lower prices.

'And they told us they wanted unlimited phone calls. For the first time we are
introducing unlimited phone calls*.

He said that, following discussions with Oftel, BT had already increased the
price of one of its packages, Talk and Surf Together, from £17.99 to £19.99.

He said: 'We strongly resist the suggestion that we are acting
anti-competitively: all we're trying to do is to give our customers excellent
value for money. We will obviously cooperate with the Competition Act inquiry
and fully expect to be given the all-clear.'

Oftel has said it will investigate the pricing of BT Surf Together and BT Talk
& Surf Together. BT announced its new packages on October 19, under the banner
of Choices from BT Together.

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Note to editors:

Customers who opt for any of the family of BT Together packages get
substantial reductions on many local, national and international call rates.
For example, national daytime calls are reduced from 8p to 4p per minute and
national evening go down from 4p to 2p per minute, plus 24 per cent off local
day and up to 75 per cent off international calls with many popular routes at
only 9p per minute off peak. Full details of all these prices can be accessed
at BT's website, bt.com

Customers can also get further information by calling BT free on 0800 055 555.

All prices given above include VAT.


*The first hour of each voice call is unmetered, then 1p per minute applies
for the rest of the off-peak period, but there is no minimum charge. Does not
apply to Lo-call (eg 0845) numbers or Internet calls. More than 99 per cent of
local evening and weekend phone calls are less than one hour long.

       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 [phone].

         All BT Group news releases can be accessed at our web site:

                        http://www.bt.com/mediacentre


ANNEX
Package                        Suitable for:                   Change from
                                                               December 1

BT Together - fee of £11.99 a                                  No change in
month including line rental,   For moderate users of the       monthly fee.
with discounted national and   telephone, making a variety of  Increased call
international calls, and an    calls within the UK and         allowance from £
inclusive call allowance of up Internationally                 2.00 to £2.40
to four hours at local evening
and weekend rates.

No UK fixed line call costs
more than 4p/min. The top 13
IDD routes cost from as little
as 9p/ min.

                              Suitable for everyone who uses   New package
                              the phone regularly,
BT Talk Together - fee of £   particularly those who make a    Call allowance
14.99 a month including line  lot of local phone calls in the  in BTT is
rental, with discounted       evenings and weekends.           exchanged for
national and international                                     the unlimited
calls, and unlimited weekend                                   call element
and evening local 'phone
calls*

BT Surf Together - fee of £   Designed for evening and weekend New package
14.99 a month including line  Internet users who are moderate
rental, and discounted        users of the telephone. Popular  Call allowance
national and international    with families with children who  in BTT is
calls, together with          love the internet. Also likely   exchanged for
unlimited weekend and evening to be a popular choice for       the unlimited
Internet calls to SurfTime    students.                        call element
participating ISPs

BT Talk & Surf Together - fee The all-rounder's package, for   New package
of £19.99 a month including   people who, are busy surfing
line rental, with discounted  when they're not on the 'phone   Call allowance
national and international    speaking to family and friends.  in BTT is
calls, and unlimited weekend  Ideal for busy,                  exchanged for
and evening local 'phone      Internet-literate families, it   the unlimited
calls* together with          gives them the peace of mind     call element
unlimited weekend and evening that, whether they're talking or
Internet calls to SurfTime    surfing at the evenings and
participating ISPs            weekends they can do so without
                              worrying about the rising cost.

BT Line Rental - line rental  Medium to Low-usage, voice-only  An increase of £
of £9.99 a month with a call  households.                      0.73p in monthly
allowance of £1.80                                             rental, more
                                                               than offset by a
                                                               £1 increase in
                                                               monthly call
                                                               allowance