BT HAILS A COMMUNICATIONS REVOLUTION WITH THE LAUNCH OF MASS MARKET VOICE OVER THE INTERNET IN THE UK

BT is transforming the way people communicate with the launch of a mass market voice over the internet product - BT Communicator with Yahoo! Messenger. This new product from BT and Yahoo!. will, for the first time, allow consumers to manage all their home communications - phone calls, webcam, emails, texts and instant messaging - together in one place on their PC, with multi way video calls expected to be added in 2005.

BT Communicator with Yahoo! Messenger is an integrated software package, downloadable for free over the internet. It combines voice services over the web with Yahoo!'s instant messaging to give consumers a truly converged multi-media communications experience.

BT is the first telco in the world to join forces with a major internet company like Yahoo! to offer this type of service on this scale - making it available to over 19 million* consumers in the UK who have a BT line.

Gavin Patterson, Group MD, Consumer and Ventures said: "We believe that BT Communicator with Yahoo! Messenger will fundamentally transform the way in which people communicate through its multi-media capability. There is simply nothing to match this service in the marketplace at the current time.

"The number of ways in which people frequently communicate is changing, with people rapidly switching from e-mail, text and instant messaging, to traditional voice calls.

For example, studies have shown that that one in every ten conversations on instant messenger ends in a phone call, often from a mobile.
"BT is responding to this cultural change in how we communicate by making it simpler for people to use the various services."
"Leading this cultural change is the youth market. By integrating BT Communicator with Yahoo! Messenger, we are targeting this new generation, offering ways to communicate that reflect new lifestyle choices. For example, providing avatars, audibles with sounds, and emoticons** for people to demonstrate their feelings via IM."

Users of the new service will be able to make free calls when connecting from their PC to another PC or make calls to a landline or mobile from their computer but for the same cost as a phone call on their BT Together fixed line phone package. From today, customers can make UK phone calls on their BT Together package - potentially from anywhere in the world.
Customers can take their laptop abroad and then plug it into the internet. While online, BT's VoIP technology then allows an international call to be made back to any UK number for the price of a domestic UK call.
Users simply click on their address book and the PC will dial the number requested and put the call through with the cost being billed straight back to the users BT phone bill.
BT is also using the same technology to develop a multi way video call feature - enabling people to dial their friends or family and speak to them face-to-face - just at the click of a button. The video feature will be available to customers in 2005.
John E. Marcom, SVP International Operations, Yahoo! Inc said: "We believe that BT Communicator with Yahoo! Messenger will take internet telephony to the mainstream in the UK by integrating BT's voice capabilities with Yahoo!'s market leading communication products. The launch of BT Communicator with Yahoo! Messenger clearly demonstrates the power of the internet and how it can be harnessed to provide ground-breaking new products and services.
" Yahoo! is focused on ensuring that Yahoo! Messenger becomes an essential communications hub across the globe and is excited that BT is its first global partner in this dynamic new market."

For further information please go to www.bt.com/btcommunicator.


* 13.5 million have internet connections
**Avatars are customisable graphic characters that users can select to represent themselves when chatting with friends.
Emoticons are graphics that people can send friends to show how they are feeling - called 'emoticons' because they enhance words with emotion.
Audibles are animated images accompanied with sound bytes with particular catchphrases and slogans.

About BT

BT Group plc is the listed holding company for an integrated group of businesses providing voice and data services in the UK and overseas, particularly in Europe, but also in the Americas and the Asia Pacific region. British Telecommunications plc, a wholly-owned subsidiary of BT Group plc, 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 2004, BT's turnover was £18,519million with profit before goodwill amortisation, exceptional items and taxation of £2,016million.

About Yahoo!
Yahoo! Inc. is a leading provider of comprehensive online products and services to consumers and businesses worldwide. Yahoo! is the No. 1 Internet brand globally and the most trafficked Internet destination worldwide. Headquartered in Sunnyvale, Calif., Yahoo!'s global network includes 25 world properties and is available in 13 languages.

For further information contact:

Jon Carter, BT press office: 020 7356 4523
Giles Deards, BT Press Office: 020 7356 5370
Or newsroom 24-hour number 020 7356 5369

Kelly Hall at OCTANE, the PR agency: 020 7802 2662 email: kellyh@octanepr.com

Sue Jackson or Kristin Carlos, Yahoo! Europe: 020 7808 4526/020 7808 4261