Pricing

British Telecommunications PLC
19 October 2000


                   BT ANNOUNCES MOST RADICAL
                     PRICING OVERHAUL EVER
          More choice, simple menu, and the option of
                unlimited off-peak local calls
                               
     BT  today  announced radical changes to its  prices.   It
plans  to  sweep  away most of its existing  consumer  calling
packages  and  introduce  for the first  time  the  option  of
unlimited  local  off-peak  phone  calls*.  All  the  proposed
changes  will  come  in from December 1, and  are  subject  to
satisfying regulatory conditions.
     BT will launch its new consumer offers under the banner
of  'choices from BT Together '.   The four choices available
to consumers (see annex for details) will be:
     -   The existing BT Together package, for £11.99 a month
          (including line rental)
     -   BT Talk Together, for £14.99 (including line rental)
          where customers will not have to pay any more for
          local phone calls at evenings and weekends*
     -   BT Surf Together, for £14.99 (including line rental)
          offering inclusive evening and weekend internet
          calls to SurfTime participating ISPs.
     -   BT Talk & Surf Together, for £17.99 a month
          (including line rental), which combines unlimited
          off peak phone calls*  and internet calls through
          SurfTime  participating ISPs.
     
     Angus Porter, managing director of BT's consumer
division, said:  'This move changes the face of BT's charging
in this country.  It reflects the impact of the Internet as
well as a need to simplify the different packages we have
introduced over recent years whilst maintaining customer
choice.
     He continued:  'In research, customers have given these
new packages a big thumbs-up, once they realised we were
serious.  For example, they think that the ability to make as
many local phone calls as they like at evenings and weekends
by paying just £5 on top of their standard line rental of
£9.99 represents great value for money.
     'We think it's going to be a trigger for many people to
look again at how they get best value for money from their
phone or Internet connection.  People are using their phone
lines more and more, and in new ways.  Because of this, there
are understandable concerns about the rising costs, despite
the huge drop in BT  prices in recent years.
     'We're today encouraging people to look again at their
packages and we are confident they will find us unbeatable
value for money.'

NOTE TO EDITORS
Customers who opt for any of the family of BT Together
packages get substantial reductions on many local, national
and international call rates.
For example, national daytime calls are reduced from 8p to 4p
per minute and national evening go down from 4p to 2p per
minute, plus 24 per cent  off local day and up to 75 per cent
off international calls with many popular routes at only 9p
per minute off peak. Full details of all these prices  can be
accessed at  BT's website,  bt.com
Customers can also get further information by calling BT free
on  0800 055 555
All prices given above include VAT and are subject to
confirmation that all regulatory obligations have been met.
              ----------------------------------
*The first hour of each voice call is unmetered, then 1p per
minute applies for the rest of the off-peak period, but there
is no minimum charge. Does not apply to Lo-call (e.g 0845)
numbers or Internet calls.  More than  99 per cent of local
evening and weekend phone calls are less than one hour long.
                               
ANNEX
Package                   Suitable for:         Change from
                                                December 1
BT Together - fee of                            No change in
£11.99 a month including  For moderate users    monthly fee.
line rental, with         of the telephone,     Increased call
discounted national and   making a variety of   allowance from
international calls, and  calls within the UK   £2.00 to £2.40
an inclusive call         and Internationally   
allowance of up to four   
hours at local evening
and weekend rates.
 No UK fixed line call
costs more than 4p/min.
The top 13 IDD routes
cost from as little as
9p/ min.
BT Talk Together - fee     Suitable for         New package
of £14.99 a month         everyone who uses     
including line rental,    the phone regularly,  Call allowance in
with discounted national  particularly those    BTT is exchanged
and international calls,  who make a lot of     for the unlimited
and unlimited weekend     local phone calls in  call element
and evening local 'phone  the evenings and
calls*                    weekends.
BT Surf Together - fee    Designed for evening  New package
of £14.99 a month         and weekend Internet  
including line rental,    users who  are        Call allowance in
and discounted national   moderate users of the BTT is exchanged
and international calls,  telephone. Popular    for the unlimited
together with unlimited   with families with    call element
weekend and evening       children who love the 
Internet calls to         internet.  Also
SurfTime participating    likely to be a
ISP's                     popular choice for
                          students.
                          
BT Talk & Surf Together   The all-rounder's     New package
- fee of £17.99 a month   package, for people   
including line rental,    who, are busy         Call allowance in
with discounted national  surfing when they're  BTT is exchanged
and international calls,  not on the 'phone     for the unlimited
and unlimited weekend     speaking to family    call element
and evening local 'phone  and friends.  Ideal
calls* together with      for busy, Internet-
unlimited weekend and     literate families,
evening Internet calls    it gives them the
to SurfTime               peace of mind that,
participating  ISP's      whether they're
                          talking or surfing
                          at the evenings and
                          weekends they can do
                          so without worrying
                          about the rising
                          cost.
BT Line Rental - line     Medium to Low-usage,  An increase of
rental of £9.99 a month   voice-only            £0.73p in monthly
with a call allowance of  households.           rental, more than
£1.80                                           offset by a £1
                                                increase in monthly
                                                call allowance