Re Broadband Installations

British Telecommunications PLC
2 November 2000


          BT TO ACCELERATE BROADBAND INSTALLATIONS

BT today announced an action plan to speed up the
installation rate for its wholesale broadband ADSL services
in the UK.

     With more than 14,000 end users now connected to a range
of service providers all using BT's wholesale ADSL products,
BT has carried out a detailed review of its early
implementation of ADSL. The company today outlined its
revised approach and anticipated delivery volumes to service
provider customers.  It now expects to ramp up end user
installations to more than three times the current rate by
March, 2001.

     Steve Andrews, president of broadband within BT said:
'BT has achieved a great deal so far.  We met our original
commitment to equip 400 exchanges covering 25 per cent of
homes and businesses by March 2000, and 619 exchanges
covering 40 per cent by October this year.  We met our
commitment to provide wholesale services, available to
service providers on non-discriminatory terms, including a
mass-market consumer product this summer.

      'Volume demand began only in September and we have
experienced some difficulties. Our challenge now is
throughput, and we have used the best experience of other
operators in the United States and other countries to learn
from the significant difficulties they have experienced.
     'Our areas of focus for improvement are processes, IT
systems and reinforcing operational support for our field
engineers who are carrying out the end-user installations.
These improvements will build on our existing achievements by
delivering real volume combined with the quality that service
providers need.'

     BT has initiated a two-pronged improvement strategy. The
company is tracking, identifying and analysing the root cause
of each customer problem as it arises so that it can
implement robust and sustainable improvements, rather than
introducing 'quick fixes' that may cause further problems.
     It has engaged a number of highly skilled and
experienced DSL consultants to assist in prioritising the
necessary work and make the most of knowledge and solutions
derived from DSL experience in the United States over the
past 12 months. The objective is to increase installation
capacity by speeding up order handling.

     In parallel, BT will develop and introduce a new suite
of operational support systems (OSS) to handle orders and
volumes quickly and consistently and provide visibility of
every order in progress for service provider customers. The
new OSS will be fully operational by December 2001.

     Ernie Gallo, senior director of Telcordia Technologies,
a leading independent US consulting firm brought in by BT to
assist with its programme review, said: 'The early
implementation of consumer and small business broadband
services, both cable and DSL-based, has been difficult for
every operator that has tried it, regardless of country.

     'Making good use of experience gained the hard way in
other operators' broadband programmes will help BT speed
through the inevitable pain barrier of early implementation,
to the benefit of the company, its customers, and their end
users.'