EU Clearance

BRITISH TELECOMMUNICATIONS PLC
20 July 1999


               BT WELCOMES EU CLEARANCE OF
                JAPAN TELECOM INVESTMENT
                            
BT and AT&T today welcomed the European Commission's
clearance of its ground-breaking strategic and
operational partnership with Japan Telecom and AT&T in
Japan.
     Sir Peter Bonfield, BT's chief executive, said: 'Our
partnership in Japan will enhance and expand the range of
competitive services available to customers, and position
Japan Telecom as the number one challenger in the
Japanese market across the telephony, data, internet and
mobile markets.'
     In April, the companies entered into a definitive
agreement for BT and AT&T to acquire a 30 per cent stake
in Japan Telecom, one of Japan's largest
telecommunications groups, for about £1.2 billion.
     The transaction is expected to close by Autumn 1999.