BT announces homeplan

BT Group PLC
29 July 2003



                                                          July 29, 2003


                   BT KEEPS IT IN THE FAMILY WITH BT MOBILE HOME PLAN

                Free calls home and family savings lead new mobile offer

BT today announced full details of BT Mobile Home Plan, its new mobile service.
It has specifically designed the new package around meeting the needs of the
modern family by offering free calls home and cheaper packages for families who
sign up together.

With BT Mobile Home Plan customers won't have to pay for any calls to their home
phone number which are under two minutes long. According to BT research, people
phone home on average five times a week and most of those calls are for two
minutes or less, making the new feature a real benefit.

Customers will also get savings by signing up more than one family member at a
time. BT Mobile Home Plan costs £15 a month line rental for the first mobile
handset and drops to £10 a month for up to five additional handsets for any more
family members in the household who sign up.

Customers will be able to buy bundled, fixed price packages of call minutes
which can be shared by the whole family. Fixed rate call prices mean customers
know exactly how much they're paying for their service. Calls to local and
national landlines will cost 10 pence a minute all day, every day. Calls to
other BT Mobile Home Plan mobiles will cost exactly the same.

The bill-paying parents in the household can also keep an eye on how the minutes
are being spent through a usage alert service that tells them how much is being
spent and by whom. A single bill will cover all the family's mobile use and mean
a lot less paper and hassle all round.

BT Mobile Home Plan will be available at more than 1,000 High Street branches of
The Carphone Warehouse, The Link and Phones 4U by the end of October or soon
after. BT has selected T-Mobile as its partner for the BT Mobile Home Plan
venture. BT will act as a mobile service provider.

Pierre Danon, chief executive of BT Retail, said: "We believe BT is the first
company to recognise that customers are not just individuals, but parts of
families. Family members who are likely to already have an existing relationship
with BT can now also get all their mobiles from us on the same contract, taking
the hassle out of managing different call charges and line rentals. This is a
perfect solution for any modern family.

"It gives parents the peace of mind which comes from knowing your son or
daughter can phone home any time for free, almost regardless of how much they
have used the phone that month.

"Our aim is to provide simple, complete and cost effective services for all our
customers whether they are at home, in the office or on the move. With our new
consumer mobile service we're doing just that."

Brian McBride, managing director of T-Mobile UK, said: "To achieve continued
success in the UK mobile market, you have to create new ways to increase
revenues and to acquire and keep the right customers.

"I believe our new relationship with BT represents the best opportunities to
achieve in these areas, as we combine a strong network with an outstanding
consumer brand. This is a win-win situation."

Looking to the future, BT is also beginning trials of a revolutionary new mobile
solution. Trialists will be able to use their mobile normally when they are out
and about, but when in a 'bluetooth' site, calls will be routed over the fixed
network rather than the GSM mobile network. So it means customers can benefit
from cheaper and clearer calls. BT has worked with Ericsson to implement an
initial trial, for which Sony Ericsson will supply trial handsets.

BT's roadmap for the eventual product is that it should be a truly converged
communications device allowing users take advantage of Wi-Fi technology to surf
the web or download files on the move.

                                     -ends-

For further information:

Emma Simpson/Sam Brickhill, Fishburn Hedges       tel: [phone]

Mike Jarvis, BT Retail press office                 tel: [phone]

Jon Carter, BT Retail press office                 tel: [phone]

or via the BT Newsroom on its 24-hour number:       tel: [phone].

Notes to editors

BT Retail is one of the businesses that make up the BT Group. Others include BT
Wholesale, BT Global Services, BT Openworld and Btexact. It is the UK's leading
communications service provider and the prime channel to market for the other
businesses in the Group. It has 21 million residential and business customers, a
turnover of £13.3bn (in the last full financial year) and around 50,000
employees.




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