Broadband speeds increased

BT Group PLC
10 February 2005


February 10, 2005

          BT MAKES BROADBAND UP TO FOUR TIMES FASTER AT NO EXTRA COST

BT today announced a transformation of its Retail broadband services. Customers
will be able to work faster and download information quicker than ever before
and at no extra cost.

The move will mean BT's 1.4 million retail broadband customers will transfer to
a new super-fast standard. Most consumer and business customers will have their
speed increased up to 2 Mb - as much as four times faster than current speeds.
Those with BT Broadband Basic will have their speed increased from 512k up to 1
Mb.

Ian Livingston, CEO for BT Retail said: "BT is about giving value for money.
Today we are offering customers up to four times the broadband speed without
charging a penny more. It will allow customers to get even more from their
broadband services for entertainment, education or communication."

These higher speeds will pave the way for new services such as
video-over-broadband and also allow customers to get more from multiple
connections. This will be ideal for families, for example, allowing them to
simultaneously connect a PC, laptop, games console, or other internet-enabled
device.

Livingston added: "The internet is no longer simply about surfing the web or
checking email. More and more people are enjoying online gaming, on-demand music
and video over the net. BT is bringing applications of the future - such as
video telephony - within reach of all our customers today.

"Today's announcement will also help businesses maximise the massive
opportunities offered by on-line trading and teleworking. We fully appreciate
the critical nature of broadband for business, so in addition to 2Mb as
standard, we are introducing a service level guarantee on our premium business
product.

"BT believes that UK consumers and businesses deserve to get the full benefit
today of tomorrow's broadband applications and services. It's time to get the
most from the internet."

New speeds will become effective for new consumer customers from February 17 and
for new business customers from April 1. Migration of existing customers will
start from the same dates.

New consumer customers can order these services from February 17 from BT.com or
by calling 0800 328 9041

New business customers can order these services from April 1 from BT.com or by
calling 0800 400 400

Ends

Notes to Editors:

Broadband from BT is subject to availability and survey. If your line won't
support 1MB/2MB, we'll offer the best speed available for your line. BT line or
similar non-cable line required. Usage allowances apply. Terms and conditions
apply.

New Consumer Portfolio

Product               Price    Speed   Usage        Available for new customers
                                     Allowance       from:

BTBroadband Basic     £17.99   1Mb     1GB           24/03/05

BTBroadband           £24.99   2Mb     15GB*         17/02/05

BT Yahoo! Broadband   £26.99   2Mb     15GB*         17/02/05

BT Yahoo! Broadband   £29.99   2Mb     30GB*         24/03/05

* usage allowance will take effect one month after installation for new
customers and one month after existing customers are migrated


New Business Portfolio

Product                         Price    Speed   Usage     Available for new  
                                                Allowance   customers from:

BT Business Broadband Single    £29.99   2Mb     unlimited      01/04/05

BT Business Broadband Share     £45.00   2Mb     unlimited      01/04/05

BT Business Broadband Network   £65.00   2Mb     unlimited      01/04/05

BT Business Broadband Network* £100.00   2Mb     unlimited      From 01/04/05

* Comes with an 8 hour service level guarantee

BT is one of the world's leading providers of communications solutions serving
customers in Europe, the Americas and Asia Pacific.  Its principal activities
include IT and networking services, local, national and international
telecommunications services, and higher-value broadband and internet products
and services.

BT consists principally of three lines of business:

   •BT Retail, providing fixed and mobile communications services and
    solutions and IT and networking services to more than 20 million business
    and residential customers in the UK. It is also a leading UK internet
    services provider.
   •BT Wholesale, providing network services and solutions within the UK to
    more than 600 fixed and mobile operators and service providers including the
    provision of  broadband, private circuits.
   •BT Global Services, providing IT and networking services internationally
    to meet the needs of multi-site organisations with European operations. BT
    Global Services operates in more than 130 countries and also offers
    international carrier services.

In the year ended 31 March 2004, BT Group's turnover was £18,519 million with
profit before goodwill amortisation, exceptional items and taxation of £2,013
million.

BT Group plc is listed on stock exchanges in London and New York. British
Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and
encompasses virtually all businesses and assets of the BT Group.

For more information, visit www.bt.com/aboutbt





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