Further 50% Stake Acquired in Dutch Venture

British Telecommunications PLC
13 April 2000


   
BT BUYS PARTNER'S 50 PER CENT STAKE IN DUTCH VENTURE TELFORT
                              

BT today announced that it is raising its investment in its

Dutch communications venture, Telfort, to 100 per cent. It

has acquired the 50 per cent of Telfort it does not already

own for £1.16 billion (NLG 4.2 billion) from its partner,

the national railway company Nederlandse Spoorwegen.

     Telfort runs fixed and mobile services in the

Netherlands to businesses and consumers. It launched its

mobile service in October 1998, and now has more than

500,000 customers. By the early summer Telfort will be among

the first of BT's European ventures to launch Genie,

Europe's leading mobile portal and Internet service

provider.

     Sir Peter Bonfield, BT's chief executive, said: 'BT

views Europe as its home market. We have equity joint

ventures or wholly-owned subsidiaries in each of the major

markets in continental  Europe and today can boast more than

18 million customers - including 15 million mobile and 1.5

million Internet customers.


     'Today's announcement about Telfort is a significant

step in our strategy of increasing our joint venture stakes

where it will enhance shareholder value. In particular,

Telfort will continue to grow, creating a key stake for BT

in the Dutch market.'

     Rob den Besten, chairman of the executive board of

Nederlandse Spoorwegen, said:  'In line with its European

strategy, BT wished to acquire full ownership of Telfort. We are

focusing on our core business and are facing high investments in 

the near future, so BT's offer came at the right moment for us.

       'We very much appreciate the successful partnership

we have had with BT and have full confidence in the future

of Telfort.   Intensive co-operation between NS and Telfort will

continue for our telecommunications and e-commerce developments, 

where we will use Telfort and BT's knowledge and experience.'

     Telfort chief executive, Ton aan de Stegge, said: ' I

am pleased with today's announcement which shows BT's

commitment to the Dutch market. In just two and half years

NS and BT have built Telfort into a strong competitive force

in the Dutch market.


     'Now Telfort will go forward by profiting from BT's

leading position as a worldwide communications company, and

with NS as a key customer we can work with to develop

leading-edge  applications in the Dutch market.'