Statement re pricing

BT Group PLC
24 March 2004



March 24, 2004



                            BT REAFFIRMS COMMITMENT

                      TO COMPETITIVE PRICING BY ABOLISHING

                    STANDARD RATE FOR RESIDENTIAL CUSTOMERS




BT today announced plans to abolish its standard rate for residential customers
and introduce a simpler range of low prices as part of its continuing strategy
to make it easier for people to understand phone price comparisons and the value
of what they get.

The plans will make BT cheaper for most UK calls than its major cable rivals.
And even where some of its main non-cable rivals are cheaper for some UK calls,
any differences per month in customer bills are likely to be minimal.

The simplified pricing structure will bring low call charges and reductions in
line rental for all three BT Together fixed monthly-fee options. The changes
will make it easier for customers to compare the value they get from BT with
similar offerings from competitors.

Existing standard rate customers will move to join the five million already on
BT Together Option 1, which will become the benchmark for BT's fixed- line call
prices from July 1. Standard rate customers moving to Option 1 will pay just 3p
a minute in the daytime and 5.5p for up to an hour per call in the evenings and
weekends instead of up to 60p for just local calls at the old rate.

By driving down prices across all three of its Together options, UK national
calls will be cheaper with BT than rivals Telewest and ntl anytime, day or
night.

Gavin Patterson, group managing director, BT Consumer and Ventures, said: "These
changes are the latest developments in our strategy to deliver more simplicity
and value for our customers. They mean that arguments by other operators about
how their prices compare with BT become virtually irrelevant. By driving down
prices and making them simpler to understand, it will be much easier for
customers to see how BT offers great value when compared to its main
competitors. Now it will be far easier for customers to compare like-with-like
when making decisions about their fixed-line phone services.

"The changes will also make BT highly competitive against the majority of its
rivals for UK calls and within a whisker of most of those offering lower rates.

"Our increased competitiveness on price means customers can focus more on the
overall value of what they get. They will need to weigh-up factors like the
service, experience and added-value they can get from an established operator
like BT when compared with what's on offer from more recent entrants to the
market.

"We are determined to fight hard but fair to retain and even grow our share of
the fixed-line market. These changes demonstrate our intention to meet head-on
the twin challenges of carrier pre-selection and wholesale line rental, and
overcome them. Customers will now benefit from simple, low charges. Compared to
Telewest, for instance, there is no contest. With BT, 5.5p gets you up to an
hour of chat. With Telewest, it doesn't even get you connected.

"By abolishing standard rate we have made life even simpler for all our
residential customers - which is what they have told us they want from BT.
Standard rate can be confusing with, for example, six different types of call
price.

"Saving money on phone calls with BT now really is as easy as one, two, three."

BT Together customers will now pay a lower line rental than they were
previously. BT Together Option 1 customers will pay £10.50 per month (previously
£11.50). They will also pay just 5.5p for up to an hour (previously 6p an hour)
on all evening and weekend calls made in the UK.

For £6 a month more(previously £7) than Option 1, BT Together Option 2 offers
free UK evening and weekend calls, while Option 3 gives free UK daytime, evening
and weekend calls for an additional £15 a month (previously £18). BT Together
Options 2 and 3 customers will benefit from the revised packages from April 1
and Option 1 customers from July 1.

                            For further information:

         Jon Carter, BT Retail press office   020 7356 4523
         Mike Jarvis, BT Retail press office  020 7356 6045

Notes to editors

Summary of changes

            BT Together     BT Together Option   BT Together Option 3
            Option 1 (the   2 (the evening and   (the anytime plan)++
            hour plan)+     weekend plan)++

            £10.50 per      BT Together Option   BT Together Option 1 +
            month*          1 + £6.00            £15.00
            (previously     i.e. £16.50 per      i.e. £25.50 per month*
            £11.50)         month*               (previously £28.50)
                            (previously £17.50)

Evenings    5.5 pence for   No call charge for   No call charge for up
and         up to an hour   up to an hour per    to an hour per call.
Weekends    per call.       call.
            1 pence per     1 pence per minute   1 pence per minute
            minute          thereafter           thereafter
            thereafter

Daytime     3 pence per     3 pence per          No call charge for up
            minute          minute               to an hour. 3 pence per
                                                 minute thereafter
            5p minimum      5p minimum call
            call charge     charge applies
            applies

+ new pricing on BT Together Option 1 introduced on July 1 2004

++ new pricing on BT Together Options 2 and 3 introduced on April 1 2004

* charges based on payment of bill by direct debit or monthly payment plan



Comparisons of BT's new pricing structure with competitors

 1. •Cost of a 10-minute national call (in pence)

                                         Daytime    Evening    Weekend
                                                    

    Competitor

    BT Together Option 1                      30        5.5        5.5

    British Gas Choice 1                      30        5.9        5.9

    Carphone Talk 70                          27        5.5        5.5

    NTL 6p Plan                               35          6          6

    One.Tel International Talk                28         28         28

    ReachHomecall Standard (Phones4U)       59.3       29.6       11.3

    Tele2                                     25          8          8

    Telewest 321                              36         26         16





 2. •BT Together Option 1 features from July 1 2004 compared with competitors

                      Monthly       Monthly Fees   Fixed Call   Maximum time
                      Difference    (incl. BT      rate for    
                      BT Together   line rental,   evenings
                      Option 1 to   where          and
                      Competitor    appropriate)   weekends

    BT Together           -              £10.50         5.5p      60 minutes
    Option 1                                                   

    British Gas       £1.50 more         £12.00         5.9p      60 minutes
    Choice 1                                                   

    Carphone Talk 70    none             £10.50         5.5p      70 minutes
                                                             

    Euphony Option 1  £2.00 more         £12.50         4.8p      60 minutes
                                                              

    NTL 6p Plan       £1.00 more         £11.50         6.0p      60 minutes
                                                               

    One.Tel           £1.00 more         £11.50         5.5p      60 minutes
    StandardUKTalk                                             

    Reach Homecall    £1.50 more         £12.00         6.0p      75 minutes
    Standard                                                   
    (Phones4U)

    Tele2                     No comparable tariff is offered.

    Telewest                  No comparable tariff is offered.

    Figures assume that payment is by monthly Direct Debit.



 3. •BT Together Option 2 monthly fees from July 1 2004 compared with competitors

    Plan                    Monthly Difference    Monthly Fees (incl. BT
                            to BT Together        line rental, where
                            Option 2              appropriate)

    BT Together Option 2         -                      £16.50
    

    British Gas Choice 2        none                    £16.50
    
    Carphone Warehouse
    Talk 70                  1p less                    £16.49

    Euphony - Option 2       £2.00 more                 £18.50

    NTL Talk                £2.00 more                  £18.50
    Unlimited

    One.Tel                  1p less                    £16.49
    LeisureUKTalk

    Reach Homecall             none                     £16.50
    Off-Peak 25
    (Phones4U)

    Tele2                      N/A                 Not available
                               

    Telewest - Talk         £1.00 more                  £17.50
    Evening and
    Weekends

    Figures assume that payment is by monthly Direct Debit.











 4. •BT Together Option 3 monthly fees from July 1 2004 compared with competitors

Plan                    Monthly Difference to   Monthly Fees (incl. BT line
                        BT Together Option 3    rental, where appropriate)

BT Together Option 3           -                                £25.50

British Gas -                none                               £25.50
Choice 3

Carphone Talk 70          £2.01 less                            £23.49
Unlimited

Euphony - Option 3        £4.00 more                            £29.50

NTL Talk Unlimited 24      50p less                             £25.00

One.Tel                    1p less                              £25.49
TotalUKTalk

Reach Homecall             2p less                              £24.48
Anytime 25
(Phones4U)

Tele2                        N/A                           Not available

Telewest                   50p more                             £26.00
TalkUnlimited

Figures assume that payment is by monthly Direct Debit.


About BT

BT Group plc is the listed holding company for an integrated group of businesses
providing voice, data and video services in the UK and elsewhere in Europe.
British Telecommunications plc, a wholly-owned subsidiary of BT Group, holds
virtually all businesses and assets of the BT group.

BT is one of Europe's leading providers of telecommunications services. Its
principal activities include local, national and international
telecommunications services, higher-value broadband and internet products and
services, and IT solutions. In the UK, BT serves over 20 million business and
residential customers with more than 29 million exchange lines, as well as
providing network services to other licensed operators.

BT consists principally of three lines of business:

   •BT Retail, serving businesses and residential customers and including BT
    Openworld, one of the UK's leading ISPs.

   •BT Wholesale, providing network services and solutions within the UK,
    including ADSL, conveyance, transit, bulk delivery of private circuits,
    frame relay and ISDN connections.

   •BT Global Services, BT's managed services and solutions provider, serving
    multi-site organisations worldwide. Its core target market is the top 10,000
    global multi-site organisations with European operations.

There are a number of other businesses within the BT group, including BT Exact,
an internationally renowned centre of excellence in IT and networking
technologies. It is also BT's technology and research and development business.

In the year ended 31 March 2003, BT's turnover was £18,727m. with profit before
taxation of £1,829m.

For more information, visit www.bt.com




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