AT&T and BT Form Mobile Alliance.

BASKING RIDGE, N.J.--(BUSINESS WIRE)--Sept. 16, 1999--

AT&T and BT today announced the formation of Advance, a strategic alliance aimed at creating seamless mobile communications services around the world.

The two companies' wireless businesses currently cover 17 countries with a total market population of more than one billion. Between them they have a customer base of 41 million.

John Zeglis, president of AT&T, said, "This alliance is an important one for AT&T and BT customers. "If you travel, you expect your BT or AT&T digital phone to work anywhere and everywhere with all of the advanced features you have - just as if you were at home. This is not possible in many cases today for a whole host of reasons, including incompatible technology and government regulation.

"By pairing two of the leading telecommunications companies in the world, AT&T and BT, we think we can make some things happen that will eventually give customers those 'anytime, anywhere' capabilities from their mobile phones."

Sir Peter Bonfield, BT's chief executive said, "Our joint vision is to be global leaders in mobility by providing seamless, best value, leading technology services to our rapidly growing customer base around the world - and to enhance shareholder value".

The Advance alliance will focus on the following priorities:

-- Developing new services for global travelers and multinational

enterprises, exploiting the largest mobile coverage footprint ever

made available including 198 GSM networks in 100 countries and 140

TDMA networks in 50 countries.

-- Providing a new mobile Global Account Services package, offering

multinational customers global contracts and consolidated management

information. A trial of this service is expected later this year.

-- Taking a common position on Third Generation mobile and mobile

Internet standards, to converge the TDMA and GSM communities around

a set of standards for third generation mobile communications

services.

-- Sharing knowledge, ideas and experience through a work exchange

program, enabling AT&T Wireless and BT people to carry out

assignments in other parts of the Advance alliance. AT&T Wireless

has also joined mobilityleaders, a knowledge-sharing forum supported

by BT for mobility professionals worldwide.

-- Growing roaming revenues, by directing as much traffic as

possible onto the two companies' own networks around the world;

developing simpler roaming packages to stimulate usage; and

negotiating with other operators on the basis of pooled roaming

volumes.

-- Pooling resources to gain economies of scale in purchasing and

investment decisions, such as the recently announced joint

investments in Japan and Canada totalling more than $3 billion.

The alliance builds on an announcement earlier this year that nine global leaders in wireless communications, including BT and AT&T, would support the development of next generation wireless services, including enhanced voice, high-speed data and Internet access, imaging and video conferencing, on an all IP-based network architecture.

Today's announcement is the latest in a series of initiatives AT&T and BT have undertaken in the past 14 months. In July 1998, they announced that they would form a $10 billion global venture to serve the communications needs of multinational businesses, carriers, and ISPs. That venture, currently awaiting regulatory approval, will combine the transborder assets and operations of both companies, including their international networks, traffic, and products for business customers.