Consortium Launches Italian Mobile Service

British Telecommunications PLC
12 May 2000



        BT CONSORTIUM LAUNCHES ITALIAN MOBILE SERVICE
                              


BT announced that Blu, the Italian consortium in which it

has a 20 per cent stake, will today become Italy's fourth

mobile network. Italy is Europe's largest mobile

communications market with more than 30 million customers

and represents for BT a key strategic market.

     BT has stakes in fixed operator Albacom, a voice and

data communications company, and the recently floated

business Internet service provider (ISP) I.NET. It wholly

owns Infinito, a consumer ISP.

     Pat Gallagher, president of BT Europe, said: 'Italy is

a very mature mobile market with about half the population

owning a mobile phone. Italian customers are very receptive

to new technology. As the lead technology partner in Blu and

with mobile operations in 14 countries, BT will use its

wealth of experience to ensure that Blu becomes a

significant force in the rapidly developing Italian market

for mobile and mobile Internet services.' Blu was awarded a

DCS 1800 mobile licence by the Italian government last

summer and plans to invest £1.8 billion over 10 years.

     The other shareholders in Blu are Autostrade (32 per

cent), Benetton (nine per cent), Mediaset (nine per cent),

Caltigirone (seven per cent), Italgas (seven per cent),

Distacom (nine per cent) and Banca Nazionale del Lavoro

(seven per cent).