3G Mobile Licence Auction

British Telecommunications PLC
9 May 2000


           BT SEEKS JUDICIAL REVIEW OF 3G PAYMENT

BT today asked the High Court to rule on the Government's

treatment of successful bidders in its third generation (3G)

mobile licence auction.

     The court was asked whether the Government has the

ability, and if so, the duty, to ensure that all licensees

pay for their 3G licences at the same time. Currently the

Government may allow Vodafone and Orange up to 36 weeks to

pay, depending on when Orange is sold.

     BT believes that the Government should require all

licensees to pay within a similar timescale to avoid giving

advantage to any particular bidder.

     A BT spokesman said: 'BT is delighted to have won a 3G

licence and will, of course, meet its obligations under the

rules.

     'The sums of money involved are considerable: the

interest on the £10 billion which Vodafone and Orange owe

for their licences is around £2 million a day. This could

lead to them saving close to £500 million over a 36 week

payment holiday. It is only fair that all bidders should pay

at the same time.'

     The company has asked the courts for an early hearing.

Discussions continue with the Government however in an

attempt to seek a solution which ensures all licensees are

treated similarly and fairly.