Response to OFTEL announcemen

BT Group PLC
07 November 2003

                                November 7, 2003


 BT SAYS OFTEL'S DECISION IS ILL-CONCEIVED AND SPELLS MORE CONFUSION FOR PHONE
                                   CUSTOMERS


BT today strongly criticised Oftel's decision to stop it calling customers who
switch phone companies as an ill-conceived move that will cause widespread
confusion for customers.

It could also open the floodgates for 'slamming', where customers are switched
without their knowledge or consent.

BT believes there will be no benefit to customers as a result of this decision.

Pierre Danon, chief executive of BT Retail, said: "This decision makes no sense
for the customer. The current system for transferring customers between
companies was designed with Oftel and as recently as July they were not minded
to change it. Now they have taken a decision to dismantle it without proper
consultation with the industry.

"Phone customers are only just getting over the confusion caused by Oftel's
handling of the 192 switch-off. Now they will be getting more of the same. This
will break an important link with our customers, which will not be in their best
interest or ours. Personal calls are crucial in ensuring each party is clear on
what is happening and they help customers make informed decisions about
switching to another company. We will not be able to call a customer until they
have left and they may not be clear which services have been terminated. The
potential for confusion is huge."

Danon added: "Only a matter of days after Oftel voiced publicly their concern at
the growth of mis-selling in the telco industry, they make a decision which will
make it easier for any unscrupulous operators to persuade consumers or
businesses to switch under false pretences, or even to switch them without their
knowledge. Oftel should be concentrating on achieving greater discipline within
the industry rather than removing an important means of customer protection.

"The potential impact on customers cannot be overestimated."

BT has already seen a sharp increase in the number of Unfair Trading complaints
received from its customers. Customer complaints to BT about competitors signing
them up to their schemes are increasing and currently running at more than 5,000
a month.

Amongst BT customers' complaints are allegations of their being approached at
home or on the high street with false but convincing claims by unscrupulous
competitors that they are "part of BT" or "doing a deal with BT for cheaper
calls".

In some circumstances some customers have found themselves signed up under false
pretences without consent. Others have felt sufficiently pressured to sign "for
information" as the only way to escape a persistent salesperson. As a result of
this and related practices many customers have claimed to know nothing about a
switch in their phone provider when BT has made contact with them.

Customers have also complained of being offered cheaper calls that never
materialised.

Danon added: "Follow-up calls to customers are an important safeguard to protect
the customer. It means they are able to verify exactly what they think they have
agreed to switch. Take these calls away and the rise in complaints about
mis-selling could become a flood.

"BT has always found innovative and creative ways to satisfy our customers and
we will continue to do so, despite not having the benefit of a level playing
field."

BT plans to appeal against Oftel's decision.

ends



For more information please contact:

Jon Carter, BT Retail Press Office; 0207 356 4523

Mike Jarvis, BT Retail Press Office; 0207 356 6045





NOTES TO EDITORS:

BT Group

BT Group plc is the listed holding company for an integrated group of businesses
providing voice, data and video services in the UK and elsewhere in Europe.
British Telecommunications plc, a wholly-owned subsidiary of BT Group, holds
virtually all businesses and assets of the BT group.

BT is one of Europe's leading providers of telecommunications services. Its
principal activities include local, national and international
telecommunications services, higher-value broadband and internet products and
services, and IT solutions. In the UK, BT serves over 20 million business and
residential customers with more than 29 million exchange lines, as well as
providing network services to other licensed operators.

BT consists principally of three lines of business:

  • BT Retail, serving businesses and residential customers and including BT
    Openworld, one of the UK's leading ISPs.

  • BT Wholesale, providing network services and solutions within the UK,
    including ADSL, conveyance, transit, bulk delivery of private circuits,
    frame relay and ISDN connections.

  • BT Global Services, BT's managed services and solutions provider, serving
    multi-site organisations worldwide. Its core target market is the top 10,000
    global multi-site organisations with European operations.

There are a number of other businesses within the BT group, including BT Exact,
an internationally renowned centre of excellence in IT and networking
technologies. It is also BT's technology and research and development business.

In the year ended 31 March 2003, BT's turnover was £18,727m. with profit before
taxation of £1,829m.

For more information, visit www.bt.com












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