BT contract with Marconi

BT Group PLC
30 June 2003

June 30, 2003



                              MARCONI TO SUPPLY BT

                          WITH KEY BROADBAND EQUIPMENT



BT today signalled its intention to move to a new generation of broadband
network based services by reaching agreement with the Marconi Corporation for
the prospective supply and installation of broadband exchange equipment. The
three year frame contract for Marconi's Access Hub product is expected to be
signed shortly.

The agreement, reached after an extensive world-wide search among suppliers
to support BT's drive to achieve five million broadband customers, is an early
key step in BT's 21st Century Network programme. This will progressively migrate
customers for voice, data and internet multimedia services onto an advanced,
multi service network

Paul Reynolds, CEO of BT Wholesale, said: "I am pleased that Marconi has
been successful against stiff competition from world-class suppliers. BT is
building a network for the future, aiming to deliver new services to customers,
to foster innovation and to stimulate creativity. Marconi's Access Hub will give
us the flexibility to develop advanced high bandwidth services and the ability
to meet customers' needs ever more precisely.

"Access Hub meets all our current broadband needs and offers a
future-proofed technology platform which is very strong in data, voice, video
and element management. It will also give BT a highly competitive whole life
cost, and ongoing product support from Marconi.

"This month BT connected its one millionth broadband customer. This deal
supports our ambitious drive towards connecting five million businesses and
consumers and to help deliver Broadband Britain."

Mike Parton, Marconi chief executive, said:      "This agreement with BT
represents an important further endorsement of our access technology and will
strengthen significantly our competitive position in ongoing discussions with
our customers around the world as they evolve towards next generation networks.
The Marconi Access Hub is a truly world-beating, best in class product."

The Marconi contract, subject to final signature, confirms them as BT's
third supplier for DSLAM equipment. They join Alcatel and Fujitsu who have
supplied BT for the last four years.

Note to editors:

BT's next generation network programme: BT is embarking on a fundamental and
radical transformation of its network and systems to enable customers to move
smoothly into the converging digital, multimedia future.

It is designing and building a migration path for customers from the existing
narrowband, circuit switched PSTN focussed world to the broadband, packet
switched IP based world of the future. Offering a richer communications
experience based on choice and personalisation, customers will have the
opportunity to tailor their communications requirements to match their needs and
lifestyle. This commercially focussed, market driven UK network aims to fulfil
customers' requirements today and to anticipate their future needs. Using
stringent capital return criteria, BT aims to deliver long-term, structural cost
reduction, by progressively migrating onto a simpler, lower-cost network
architecture.

Currently BT is testing its ideas against the best in the world, planning a
portfolio of products and designing the blueprint of the architecture. Later
this year concept and market trials are planned. The progressive deployment of
new technological and systems developments will be seen from 2004 onwards.

Marconi Corporation plc is a global telecommunications equipment, services and
solutions company. The Marconi Access Hub is a new generation access platform
which delivers multiple services, not just high speed internet. It has been
designed to carry high speed data, ethernet, video and broadcast TV as well as
traditional voice telephony. The Access Hub combines the functionality of
Digital Subscriber Line Access Multiplexers (DSLAMS) and the ability to
aggregate all traffic types with one of the industry's highest port densities
and low running costs. DSLAMS are devices usually located in an operators
exchanges. They aggregate DSL connections, typically a pair of copper wires
running to each customer's premises, grooming, sending and receiving their
traffic to and from the network core. With up to 40 Gbit/s of bandwidth on the
backplane, the Access Hub is ideal for operators migrating their network to meet
future demand for high bandwidth services.




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