New ServiceProvider Tariff

British Telecommunications PLC
9 November 1999


     BT SET TO SLASH COST OF DIAL-UP INTERNET ACCESS
                  TO SERVICE PROVIDERS

BT today declared its intention to reduce dramatically the cost of dial-up calls
to the Internet.

BT will this week notify a new service provider tariff to Oftel and the
industry.  This will make it possible for ISPs to launch radically new
subscription tariffs which might include unlimited dial-up calls to
the Internet for a single monthly fee. The new service provider tariff will be
available from mid-December.

The company will invest more than £100m over the next two financial years on
technology which will optimise the network for Internet use.

Bill Cockburn, group managing director of BT UK, said:  'BT is continuing to
develop a range of Internet access options which cater effectively for both
heavy and infrequent users, ranging from individuals at home to major
corporations.'

Note to Editors

The new service provider tariff will give ISPs direct dial access to Internet
Protocol (IP) ports, including an average of eight hours usage per day.  Excess
usage will incur a further charge of less than 1p per minute.  The price per
port will be £140 (prices excluding VAT). ISPs who take up the offer will be
able to set the level of their monthly or other charge, and determine
their own desired ratio of consumers to the number of ports purchased.
Working on the assumption of 14 consumers per dial port across a large network,
Internet service providers will therefore be paying BT £10 a month for each
consumer's calls to their service. ISPs will determine, via real time network
management, how long each consumer may stay on-line without interruptions.