BT launch Mobile Sense

BT Group PLC
01 October 2002

   October 1, 2002

BT BRINGS GOOD SENSE TO THE MOBILE PHONE MARKET

BT today announced its return to the consumer mobile phone market by offering a
groundbreaking new service, Mobile Sense, which enables customers to select
their own call charge package online.

A table of pricing options on BT's website, bt.com, will enable customers to
select the right package based on how many minutes they call landlines and other
mobile phones, and the number of text messages they want to send.

Customers will also be able to choose online from 12 of the latest handsets,
including Nokia and Sony Ericsson, as part of the tailored package, which will
use O2's network.

The price of a customer's package will be immediately displayed on screen,
taking the guesswork out of the overall cost of a mobile phone service.

BT's Mobile Sense fundamentally changes the relationship between customer and
service provider - giving customers the power to completely control their own
call plan using a simple website.

BT has introduced the service after listening to customer comments that mobile
phone costs were too complicated and inflexible.

BT plans to market Mobile Sense entirely over the internet at bt.com, which has
two million registered users.

Pierre Danon, chief executive officer of BT Retail, said the new product was an
innovative way in which the company could add value in the consumer mobile
market.

"Mobile Sense is not a mass-market offering, but it does represent a practical
and low-risk first step into the consumer mobile space. I have said previously
that we would not enter the consumer mobile sector unless we had something which
brought a new dimension to this already competitive market. With this product,
we have a unique proposition that gives our online customers complete control
over what they are charged, even allowing them to change their pricing packages
every month if necessary.

"Mobile Sense from BT is a perfect fit within our strategy. It aims to deliver
what the customer wants and is centred around our website bt.com, through which
we are encouraging more and more transactions to be made online.

"This is an opportunity with high-potential for BT, from which we are expecting
to generate the majority of the targeted £44 million of consumer and other new
mobility revenues by 2004/05.

Dave Hughes, director of mobility, said: "This new product puts the customer in
the driving seat from day one. The great benefit to customers is that no sales
assistant will sell them a mobile phone which does not suit their requirements
or land them with a tariff which does not fit their call patterns and ends up
costing them more money.

"The new online shop will enable customers to buy a new mobile phone, select
their own call package and even pay their monthly bill in minutes, without even
leaving the sofa," added Hughes.

Davd McGlade, chief executive officer of O2 UK, said: "This agreement represents
incremental wholesale business for O2 UK and builds on the success of our
existing arrangement with BT in the corporate market."

                         ends

Note to editors

Further details about Mobile Sense from BT

Handsets will be paid for online by credit card and accounts will be settled by
direct debit, after the customer receives an email bill.

Handsets will be delivered within 48 hours of an order being placed online. The
customer can then set about developing their own price package, using Off-peak
or AnyTime as their starting point.

A monthly line rental charge is payable and a 12-month contract is required.

Customers will also be able to monitor their bill online and track their calling
patterns month by month, which will enable them to further refine their personal
call package.

If they use more minutes than they expected in any month the extra units will be
charged at standard rates.



For further information, please contact:


Mike Jarvis     BT Retail Press Office tel: [phone]

Jon Carter     BT Retail Press Office tel: [phone]

Malcolm Williams     Head of News, BT Retail tel: [phone]








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