Purchase of 'The Mobile Phone Store' Complete

British Telecommunications PLC
14 April 2000

                                 
    BT CELLNET TAKES CONTROL OF THE MOBILE PHONE STORE
                    IN £40 MILLION DEAL

BT  Cellnet has completed the purchase of The Mobile Phone
Store  retail chain which comprises 129 stores across  the
UK.  BT  Cellnet already owns 40% of the business. It  has
now  acquired  the remaining 60% for a total consideration
of  £40 million. The deal comes just over a week after  BT
Cellnet   significantly  strengthened  its   high   street
offering by becoming the first UK mobile network to  offer
pre-pay WAP phones.

This acquisition, which follows BT Cellnet's purchases  of
Martin Dawes Telecommunications and DX communications last
year,  takes  the total number of BT Cellnet owned  retail
outlets  in  BT  Cellnet's direct control to  almost  300.
The  deal  is  designed to strengthen BT Cellnet's  direct
contact with customers at a time when the explosion of the
mobile  internet  is  bringing more choices  to  the  high
street than ever before.

The  Mobile Phone Store was founded in 1993 by Mike McComb
and in 1997 BT Cellnet acquired a 40% stake.  BT Cellnet's
acquisition  of the remaining 60% values the  business  at
£67 million.   Mike McComb will remain with the company to
oversee  the  transition and all jobs in the  organisation
remain secure.

Hugh Logan, director of retail strategy at BT Cellnet  and
managing  director of Martin Dawes Telecommunications  and
DX  communications, will assume overall responsibility for
The Mobile Phone Store with immediate effect.

Hugh Logan commented:

'The Mobile Phone Store has had an extraordinary story  of
success  in  the  past few years.  It has grown  from  one
store in 1993 to the 129 we see today.  Mike and his  team
have developed a dynamic customer led culture which we are
keen to nurture. We want the pace of expansion to continue
under  our new ownership and we have already committed  to
opening more stores throughout the rest of this year.

'The  acquisition of The Mobile Phone Store is part of  BT
Cellnet's   strategy  of  ensuring  that  our   leadership
position in mobile internet is supported by a strong  high
street presence which will offer customers the choice  and
advice that they need.'

Mike McComb added:

'BT  Cellnet has already shown itself to be a good partner
for us, and I'm convinced that it is the right company  to
take  The  Mobile  Phone Store to the next  stage  of  its
development.  This really is a great announcement for both
our  staff  and customers and we look forward  to  working
together to build further success in the future.'



BT Cellnet Press Office                      01753 565656