BT 2Q07 VoIP update

• Ended 2Q07 with 1.7 million VoBB subscribers, a 23% increase over previous quarter

• Capex spent of over GBP 900 million (approx $1.8 billion); nearly 30% spent on 21CN and related projects within BT Global Services and BT Wholesale divisions.

• Commercial deployment of VoIP within 21CN going well.

• Estimated VoIP traffic carried during the quarter: 1.8 billion, over half of which is local call volume
• Launched initiatives during the quarter to educate SMBs on VoIP. BT estimates that one-fourth of all SMBs in the UK are already using VoIP

• Launched Office Anywhere, which comes with VoIP and includes free hour-long internet phone calls to UK landlines from 2,000 BT Openzone Wi-Fi hotspots in the UK and Ireland