Multimedia Collaboration with AT&T and Microsoft

British Telecommunications PLC
30 March 2000

         
                                
        BT, AT&T WIRELESS AND MICROSOFT TO COLLABORATE ON
                                
              HIGH-SPEED WIRELESS DATA APPLICATIONS
                                

BT, AT&T Wireless Services Inc., and Microsoft Corp., today

announced plans to cooperate in the wireless Internet industry to

meet the needs of customers for mobile multimedia services.

     The companies will collaborate to conceive, develop and

deploy new wireless broadband applications for consumer and

business markets around the world. Based on Microsoft's platform

for mobile data services, the applications will be capable of

being deployed on BT's and AT&T's existing and

next-generation high-speed mobile data networks. The companies

expect to begin trials of some services this Autumn with

commercial rollout planned for soon after.

     Microsoft will dedicate a development team to create the

mobile applications that will take advantage of existing and

future high-speed wireless data networks, including AT&T's and

BT's future third generation networks. AT&T will deploy the

Enhanced Data rates for GSM Evolution (EDGE) network, and BT,

together with its international joint venture partners, will

deploy Universal Mobile Telecommunications System (UMTS)

networks.       

     UMTS and EDGE will enable BT and AT&T Wireless to provide

seamless global roaming capabilities and high-speed wireless

Internet protocol (IP) services. The applications will also be

capable of being deployed over AT&T's existing Cellular Digital

Packet Data (CDPD) network and BT's forthcoming General Packet

Radio Service (GPRS) network.

     Microsoft's wireless data services platform will provide an

end-to-end solution to allow a broad class of mobile devices to

interact with carrier-provided services. Business subscribers

using Microsoft's wireless data services platform will have

access to corporate information such as e-mail, calendar,

contacts and other critical information while on the go.

     In addition, consumer subscribers will have access to

wireless multimedia applications, such as interactive games, e-

books and music. Because Microsoft's platform supports open

standards, application developers will find it easy to build

additional service offerings.

     Sohail Qadri, director of BT mobility, said: 'Applications

are key to customers. By working with AT&T Wireless and

Microsoft, we will provide our customers with advanced,

innovative and higher-speed mobile Internet applications, giving

them true multimedia capability while on the move. Together, we

will drive the growth of innovative services that have the

potential to improve business competitiveness and make day-to-day

communications much easier.'

     Kendra VanderMeulen, senior vice president of product

strategy and development at AT&T Wireless Services, said: 'Our

customers will be the direct beneficiaries of this exciting

collaboration. The rollout of our third generation wireless

networks will go hand-in-hand with the development and delivery

of new applications, providing our customers with the ability to

communicate in new and powerful ways as these services become

available.'

     Paul Gross, senior vice president of mobility and server

applications at Microsoft, said: 'We are excited to team with BT

and AT&T Wireless to offer innovative applications for

Microsoft's platform for mobile data services. This agreement

enables BT and AT&T Wireless to benefit from our development

resources and allows us to work with these industry-leading

network operators to ensure that our platform will meet the needs

of the carrier community looking to provide application-rich

mobile data services.'

     Today's announcement extends the existing relationship

between BT and Microsoft into the broadband mobile arena. BT and

Microsoft have already announced that they are developing

corporate and consumer mobile applications for use on existing

mobile networks. It also builds on Advance, the BT and AT&T

alliance, aimed at creating seamless mobile communications

services around the world. The Advance alliance represents about

48 million subscribers in more than 15 countries.