Mobile Licence Awarded

BRITISH TELECOMMUNICATIONS PLC
23 July 1999



                             
         BT CONSORTIUM WINS ITALIAN MOBILE LICENCE
BT today announced that its Blutel consortium has won
Italy's fourth mobile licence. The consortium, formed by
BT, includes Autostrade, Mediaset, Benetton, Distacom,
Banca Nazionale de Lavoro, the Caltagirone Group and ENI.
     Blutel services will be available nationwide in Italy
from the launch of the service in the first quarter of
2000, through agreements with current operators.
     Pat Gallagher, president of BT Europe, said: 'We are
delighted that this licence has been awarded to the Blu
Consortium as mobility represents a strategic growth area
for BT.  This is a further indication of our commitment to
the Italian telecommunications market and BT's wider
integration in Europe.'
     Blutel plans to invest more than £1.8 billion over the
next 10 years to meet demand in Italy, one of Europe's most
dynamic mobile markets, with major growth potential. With
both fixed and mobile service offerings in place, BT will
offer a full portfolio of telecommunications services to
the Italian market.
     The licence is a national DCS 1800 mobile licence,
awarded as the result of a Government-conducted auction.
     Through subsidiaries and alliance partners, BT now
holds a total of 23 licences throughout Europe.