Ofcom settlement

BT Group PLC
22 September 2005

DC05 - 612                                                   September 22, 2005


                       BT WELCOMES NEW ERA OF REGULATION

BT welcomed the landmark regulatory settlement announced by Ofcom today as a
"defining moment" for the industry. The company predicted it would usher in a
new era of investment and innovation.

The settlement, which follows Ofcom's acceptance of legally binding
undertakings from BT, is based on the principle of focusing regulation only
where it is needed and rolling it back elsewhere. It will deliver clarity and
certainty to the whole telecommunications industry. It represents the biggest
regulatory change since BT was privatised more than twenty years ago.

As part of the settlement, BT has agreed to create a new business called
openreach (see accompanying news release DC05-613). This business, which will be
up and running by January 2006, will ensure all service providers have
transparent and equal access to the nationwide local BT network. This network
covers the "first mile" of wire that connects homes and businesses to BT
exchanges across the UK.

BT chairman Sir Christopher Bland welcomed the settlement:

"This is a real achievement for the whole communications industry. It will
benefit consumers, businesses and the UK economy. Ofcom have shown real vision,
and BT looks forward to competing in this new regulatory environment".

BT chief executive Ben Verwaayen added: "This settlement is a defining
moment for the industry and BT is totally committed to it. It offers a fresh
start and means that companies will be able to focus entirely on their

customers without being distracted by micro-regulation. It provides everyone
with greater certainty and clarity. That, in turn, will release investment and
innovation from which everyone will benefit."


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 + 44 20 7356 5369. All
 news releases can be accessed at our web site: http://www.bt.com/newscentre


About BT

BT is one of the world's leading providers of communications solutions serving
customers in Europe, the Americas and Asia Pacific. Its principal activities
include networked IT services, local, national and international
telecommunications services, and higher-value broadband and internet products
and services.

BT consists principally of three lines of business:

  • BT Retail, providing a comprehensive range of communications and related
    services to more than 20m UK consumers and businesses.
  • BT Wholesale, providing network services and solutions within the UK to
    more than 600 fixed and mobile operators and service providers including the
    provision of broadband and private circuits.
  • BT Global Services, providing networked IT services to meet the needs of
    multi-site organisations globally. BT Global Services operates in more than
    130 countries and also offers international carrier services.

In the year ended 31 March 2005, BT Group's turnover was £18,623 million with
profit before goodwill amortisation, exceptional items and taxation of £2,085
million.

BT Group plc is listed on stock exchanges in London and New York. British
Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and
encompasses virtually all businesses and assets of the BT Group.

For more information, visit www.bt.com/aboutbt


                      This information is provided by RNS
            The company news service from the London Stock Exchange