openreach establishment

BT Group PLC
22 September 2005

DC05 - 613                                   September 22, 2005


                  BT UNVEILS NEW MULTI-BILLION POUND BUSINESS


BT today unveiled openreach, a new multi-billion pound business that will be
responsible for the nationwide local BT network.

     Openreach is set to become a familiar household name as it will contain
BT's field force of 25,000 engineers. These engineers make more than 3.5 million
home visits every year on behalf of hundreds of companies. They are the men and
women who install new lines, upgrade the local network and maintain the green
cabinets at the side of the road. In short, they are the people who ensure that
tens of millions of people across the UK have reliable local access to telephony
and internet services.

     The business, as well as having a new name, will also have a dramatic new
look. Its 22,000 vans are to be re-sprayed to distinguish them from the rest of
the BT fleet. They will be instantly recognisable by the bright multi-coloured
waves that stretch the length of each vehicle.

     Openreach is being created as a result of the new regulatory settlement
(see release DC05-612). It will be operational from January 2006 ensuring all
service providers have transparent and equal access to the local BT network.
This network covers the "first mile" of wires that connects homes and business
to BT exchanges across the UK.

     It will be led by chief executive Steve Robertson, whose appointment was
confirmed today. Whilst remaining an important part of BT, it will have its own
headquarters, distinct identity and around 30,000 staff. These staff will come
primarily from BT Wholesale and BT Retail.

     The business will be the second largest within BT Group by number of
employees and will have assets of around £8 billion and revenues of more than £4
billion. This makes it comparable in size to some FTSE 100 companies.

      Openreach will have its performance monitored by the newly created
Equality of Access Board (EAB). This Board will monitor the delivery of the
undertakings given by BT to Ofcom and so will also monitor the performance of BT
Wholesale in certain areas. Carl Symon, one of BT's non-executive directors,
will chair the Board which will have a majority of independent external members.

     Openreach chief executive Steve Robertson said: "The local BT network is
one of the UK's most important assets and my role is to ensure everyone has
equal access to it. My team will be responsible for ensuring tens of millions of
homes and businesses have access to the wider world and to faster and more
exciting services in the future. Now we have a green light we can get down to
delivering a business that everyone can be proud of. There's a huge amount to be
done by January but, given the progress we've already made, I am sure we will be
ready."

     The structure of BT Northern Ireland will not be affected.

Notes to Editors

The openreach identity was created by leading brand and digital agency Rufus
Leonard, who were recently responsible for the BT Connected World rebrand.  The
Openreach identity will be rolled out across all elements of the new business
following the launch in January, from livery and signage to uniforms and
corporate and marketing communications.

Steve Robertson

Steve joined BT Wholesale in October 2002 as Managing Director Wholesale
Operations from COLT Telecommunications. At COLT Steve was responsible for the
design, deployment and operation of their pan-European infrastructure as well as
product management and sales for COLT's pan-European business as their Managing
Director. Before joining COLT, Steve held a number of positions across BT
including Director of Data Products and Senior Vice President Network, Systems
and Operations for Concert.


                                    Openreach Facts

      • Openreach's copper access network is 120 million kilometres long and
        so could stretch around the globe 3,000 times
      • This network covers 30 million customer lines from c.6,000 local
        exchanges
      • 300 million telephone calls are made across this network every day
      • 350 million internet connections are made across this network every
        day
      • Openreach will employ around 30,000 people, 25,000 of whom are
        engineers
      • These engineers collectively climb the equivalent of Mount Everest
        every single day while carrying out maintenance on telegraph poles
      • They work down 200,000 manholes and up more than 2.5 million poles
      • They visit 11,000 homes and offices every day. That's 3.6m visits a
        year to help install new lines, make repairs, upgrade service etc
      • Openreach will have a fleet of more than 22,000 vans
      • This means Openreach engineers collectively travel almost three times
        around the circumference of the globe every single day


 Images of the new Openreach identity are available for download via the image
                          library at www.vismedia.com.




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


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            The company news service from the London Stock Exchange