Third Generation Mobile Auction Entered

British Telecommunications PLC
12 January 2000

                            
        BT ENTERS THIRD GENERATION MOBILE AUCTION

BT today announced that it has applied to enter the

auction for a third generation mobile licence in the UK.

BT will bid through a wholly-owned subsidiary, BT3G Ltd.  This 

will ensure corporate flexibility and will operate seamlessly 

with BT Cellnet and BT's fixed business.

     Third generation is an important development in the

marketplace, bringing advanced mobile multimedia services

to customers.  However, BT is not waiting for third

generation.  By the middle of this year, BT Cellnet will

launch GPRS services - a first in the UK and probably the

world.

     GPRS is a stepping stone to third generation and

allows data to be transmitted between five and 10 times

faster than today's services.  It will enable customers

to surf the net or access e-mail wherever they are.