BT sets out global vision

BT Group PLC
14 September 2006



September 14, 2006


                           BT SETS OUT GLOBAL VISION


   - Revenues from US, Japan, India and China to more than double by 2008/9 -

    - Italy and Germany to both become 1 billion euro operations by 2008/9 -

     - £400 million of annualised cost savings to be delivered by 2008/9 -

BT today set out its global vision predicting strong growth in the US, Japan,
India and China. Revenues from those important markets are expected to more than
double by 2008/9 whilst the company said it is targeting turnover of one billion
euros in both the Italian and the German markets during the same period.

BT also announced it will deliver £400 million of annualised cost savings from
its Global Services division by 2008/9. This will help the division to invest
for the future and achieve its targets for EBITDA growth.

The company also revealed it will launch Corporate Fusion in early 2007 as well
as expand its global network providing it with a further competitive edge over
its competitors.

BT Global Services is the fastest growing division within the BT Group. It
supports large businesses and organisations across the globe. Its chief
executive Andy Green said today: "BT Global Services is thriving. We have
transformed the division into a leading supplier of networked IT services based
on the most extensive and resilient network in the world. We have very ambitious
plans and BT's brand is fast becoming as familiar to businessmen in New York,
Tokyo, Mumbai and Shanghai as it is in Europe.

"BT's corporate business is an increasingly important part of the company's
growth strategy. Our diversification into global networked IT services sets BT
apart from other telcos."

BT Global Services provides its customers with networked IT services based on
BT's global network. The division employs 27,500 staff in 53 countries and
supplies services in more than 170 countries. Clients include Reuters, Unilever,
Philips and the NHS. The division achieved 15 per cent revenue growth last
financial year winning £5.4bn in networked IT services orders in that period.

Whilst the division currently generates most of its revenues from the UK and
Western Europe, BT confirmed today that it expects to more than double its
revenues in the US, Japan, India and China over the next three years. This
growth will be driven by an increase in investment and personnel in those
countries. The company also expects both its German and Italian operations to
generate revenues of 1 billion euros by 2008/9 and for there to be double-digit
growth in Spain and the Benelux countries.

BT revealed it is currently adding a new city to its MPLS network every week and
connecting more than 3,000 customer sites a month. The capacity of the network
has been expanded six fold over the last year and carries the digitised
equivalent of the Library of Congress, Washington DC, five times a day. BT
believes its global 21st century network is already the broadest, richest and
most resilient in the world enabling companies and organisations to instantly
trade across the globe with complete confidence.

Finally, BT announced it is to launch Corporate Fusion in early 2007. This is a
new service for large organisations enabling them to take advantage of
fixed-mobile convergence and their increasing deployment of IP telephony and
WiFi coverage. This will potentially deliver greater productivity, the
possibility of reduced GSM call costs and an improved quality of service. Leeds
City Council were confirmed today as the first major triallist for the
innovative service.


                                      ENDS


   •Certain statements in this release are forward-looking and are made in
    reliance on the safe harbour provisions of the US Private Securities
    Litigation Reform Act of 1995. These statements include, without limitation,
    those concerning: continued growth in revenue and accelerating EBITDA
    growth; cost savings; the launch of new products and services; and growth in
    non-UK business.


   •Although BT believes that the expectations reflected in these
    forward-looking statements are reasonable, it can give no assurance that
    these expectations will prove to have been correct. Because these statements
    involve risks and uncertainties, actual results may differ materially from
    those expressed or implied by these forward-looking statements.


   •Factors that could cause differences between actual results and those
    implied by the forward-looking statements include, but are not limited to:
    material adverse changes in economic conditions in the markets served by BT;
    future regulatory actions and conditions in BT's operating areas, including
    competition from others; selection of business of the appropriate trading
    and marketing models for its products and services; technological
    innovations, including the cost of developing new products, networks and
    solutions and the need to increase expenditures for improving the quality of
    service; the anticipated benefits and advantages of new technologies,
    products and services, including broadband and other new wave initiatives,
    not being realised; developments in the convergence of technologies;
    fluctuations in foreign currency exchange rates and interest rates;
    prolonged adverse weather conditions resulting in a material increase in
    overtime, staff or other costs; the timing of entry and profitability of BT
    in certain communications markets; and general financial market conditions
    affecting BT's performance. BT undertakes no obligation to update any
    forward-looking statements whether as a result of new information, future
    events or otherwise.


 Inquiries may also be made to the BT Group Newsroom on its 24-hour number: 020
7356 5369. From outside the UK dial + 44 20 7356 5369. All news releases can be
             accessed at our web site: http://www.bt.com/newscentre



About BT

BT is one of the world's leading providers of communications solutions and
services operating in 170 countries. Its principal activities include networked
IT services, local, national and international telecommunications services, and
higher-value broadband and internet products and services. BT consists
principally of four lines of business: BT Global Services, Openreach, BT Retail
and BT Wholesale.


In the year ended 31 March 2006, BT Group's revenue was £19,514 million with
profit before taxation of £2,040 million.


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


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



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            The company news service from the London Stock Exchange