Reduction of Calls & Access Prices

British Telecommunications PLC
7 December 1999


                     BT REDUCES CALLS & ACCESS PRICES

BT today announced a series of price reductions for its Calls & Access product.

The changes will see the line rental charged by BT to service providers reduced
to £32.50 per quarter, backdated to October 1, 1999 and national call prices cut
by 20 per cent.

A BT spokesman said: 

'This is an important market area and BT is pleased to announce these price
reductions for Independent Service Providers.'

The main changes announced today are:

* Line rental reduced to £32.50 per quarter, backdated to
  October 1 1999. (Excluding VAT)
* National Call prices reduced by 20%
* Price of calls to mobiles reduced by 3%
* Reduction in the commitment package  call  commitment
  element from £39 per quarter to £30 per quarter
  (calculated as £10 per month). (Excluding VAT)