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Prepared and filed by St Ives Burrups
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<P align="center"><B><FONT size="3" face="Arial,Bold,Arial,Helvetica,sans-serif">UNITED STATES<br>
</FONT></B><font size="3"><B><FONT face="Arial,Bold,Arial,Helvetica,sans-serif">SECURITIES AND EXCHANGE COMMISSION</FONT></B><FONT face="TimesNewRoman,Times New Roman,Times,serif"> </FONT></font></P>
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<B><FONT size=2 face="Arial,Bold,Arial,Helvetica,sans-serif">Washington, D.C. 20549</FONT></B><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif"> </FONT></P>
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    <td align="center"><b><font size=5 face="Arial,Bold,Arial,Helvetica,sans-serif">FORM 20
    - F</font></b><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp; </font></td>
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    <td colspan="3" valign="top"><font size=2 face="Arial,Arial,Helvetica,sans-serif">(Mark
    One)</font></td>
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    <td width="5%" valign="top">&nbsp;</td>
    <td width="5%" valign="top"><img src="emptybox.gif" width="12" height="12"></td>
    <td align="center"><font size=2 face="Arial,Arial,Helvetica,sans-serif">REGISTRATION STATEMENT
        PURSUANT TO SECTION 12(b) OR (g)</font><br>        <font size=2 face="Arial,Arial,Helvetica,sans-serif">OF
    THE SECURITIES EXCHANGE ACT OF 1934</font><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp; </font></td>
    <td width="10%" align="center">&nbsp;</td>
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    <td valign="top">&nbsp;</td>
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    <td align="center"><font size=2 face="Arial,Arial,Helvetica,sans-serif">OR</font></td>
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    <td valign="top">&nbsp;</td>
    <td valign="top"><img src="tickedbox.gif" width="12" height="12"></td>
    <td align="center"><font size=2 face="Arial,Arial,Helvetica,sans-serif">ANNUAL
    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE</font><br>    <font size=2 face="Arial,Arial,Helvetica,sans-serif">SECURITIES
    EXCHANGE ACT OF 1934</font><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp;</font><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp;</font></td>
    <td align="center">&nbsp;</td>
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    <td valign="top">&nbsp;</td>
    <td align="center"> <b><font size=2 face="Arial,Bold,Arial,Helvetica,sans-serif">For
    the fiscal year ended 31 March 2006</font></b><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp; </font></td>
    <td align="center">&nbsp;</td>
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    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td align="center"><font size=2 face="Arial,Arial,Helvetica,sans-serif">OR</font></td>
    <td align="center">&nbsp;</td>
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    <td valign="top">&nbsp;</td>
    <td valign="top"><img src="emptybox.gif" width="12" height="12"></td>
    <td align="center"><font size=2 face="Arial,Arial,Helvetica,sans-serif">TRANSITION
        REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE<br>
    </font><font size=2 face="Arial,Arial,Helvetica,sans-serif">SECURITIES
EXCHANGE ACT OF 1934</font></td>
    <td align="center">&nbsp;</td>
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    <td valign="top">&nbsp;</td>
    <td align="center"><font size=2 face="Arial,Arial,Helvetica,sans-serif">OR</font><font size=2
face="TimesNewRoman,Times New Roman,Times,serif">&nbsp;</font></td>
    <td align="center">&nbsp;</td>
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    <td valign="top">&nbsp;</td>
    <td valign="top"><img src="emptybox.gif" width="12" height="12"></td>
    <td align="center"><font size=2 face="Arial,Arial,Helvetica,sans-serif">SHELL
        COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE</font><br>        <font size=2 face="Arial,Arial,Helvetica,sans-serif">SECURITIES
    EXCHANGE ACT OF 1934</font><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp;</font></td>
    <td align="center">&nbsp;</td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="center"><font size=2 face="Arial,Arial,Helvetica,sans-serif">Date
    of event requiring this shell company report</font><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp;</font><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp; </FONT>..................................</td>
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    <td>&nbsp;</td>
    <td align="center"><p> <b><font size=2 face="Arial,Bold,Arial,Helvetica,sans-serif">For
    the transition period from </font></b><font size=2 face="Arial,Arial,Helvetica,sans-serif">_______________</font><b><font size=2 face="Arial,Bold,Arial,Helvetica,sans-serif"> to </font></b><font size=2 face="Arial,Arial,Helvetica,sans-serif">_______________</font><font size=2 face="TimesNewRoman,Times New Roman,Times,serif"> </font></p></td>
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    <td colspan="2" align="center"><p> <font size=2 face="Arial,Arial,Helvetica,sans-serif">Commission File
    Number: 333-12356 </font></p></td>
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    <td>&nbsp;</td>
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    <td colspan="2"> <b><font size=5 face="Arial,Bold,Arial,Helvetica,sans-serif">British
    Telecommunications plc</font></b><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp; </font></td>
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    <td colspan="2"> <font size=2 face="Arial,Arial,Helvetica,sans-serif">(Exact
    name of Registrant as specified in its charter)</font><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp; </font></td>
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    <td><b><font size=2 face="Arial,Bold,Arial,Helvetica,sans-serif">Not Applicable </font></b><font size=2 face="Arial,Arial,Helvetica,sans-serif">&nbsp; </font><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp; </font><b><font size=2
face="Arial,Bold,Arial,Helvetica,sans-serif"></font></b></td>
    <td><b><font size=2
face="Arial,Bold,Arial,Helvetica,sans-serif">England and Wales</font></b><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp; </font></td>
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    <td><font size=2 face="Arial,Arial,Helvetica,sans-serif">(Translation of
    Registrant&#146;s name into English)</font></td>
    <td><font size=2 face="Arial,Arial,Helvetica,sans-serif">(Jurisdiction of
    incorporation or organization)</font><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp;</font></td>
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<P align="center">
<B><FONT size=2 face="Arial,Bold,Arial,Helvetica,sans-serif">BT Centre<br>
</FONT></B><B><FONT size=2 face="Arial,Bold,Arial,Helvetica,sans-serif">81 Newgate
Street, London, EC1A 7AJ<br>
England<br>
</FONT></B><FONT size=1 face="Arial,Arial,Helvetica,sans-serif">(address of principal executive offices)</FONT><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif"> </FONT></P>
<P>
<FONT size=2 face="Arial,Arial,Helvetica,sans-serif">Securities registered or to be registered pursuant to Section 12(b) of the Act: None</FONT><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif"> </FONT></P>
<P><FONT size=2
face="Arial,Arial,Helvetica,sans-serif">Securities registered or to be registered pursuant to Section 12(g) of the Act: None</FONT></P>
<P><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif"> </FONT><FONT size=2
face="Arial,Arial,Helvetica,sans-serif">Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: </FONT></P>
<P align="center"><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif">$3,000,000,000 8<sup>1</sup>/<sub>8</sub></FONT><FONT size=2
face="TimesNewRoman,Times New Roman,Times,serif"></FONT><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif">% Notes Due 2010</FONT><br>
  <FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif">$2,800,000,000
</FONT><FONT size=2
face="TimesNewRoman,Times New Roman,Times,serif">8<sup>5</sup>/<sub>8</sub></FONT><FONT size=2
face="TimesNewRoman,Times New Roman,Times,serif"></FONT><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif">%</FONT><FONT size=2
face="TimesNewRoman,Times New Roman,Times,serif"> Notes Due 2030 </FONT></P>
<P align="left">
<FONT size=2 face="Arial,Arial,Helvetica,sans-serif">Indicate the number of outstanding shares of each of the issuer&#146;s classes of capital or common stock as of the close of the period covered by the Annual Report: </FONT></P>
<P align="center">
<B><FONT size=2 face="Arial,Bold,Arial,Helvetica,sans-serif">8,689,755,905 Ordinary Shares, of 25p each </FONT></B></P>
<P>
<FONT size=2 face="Arial,Arial,Helvetica,sans-serif">Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.</FONT><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif">
</FONT></P>




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    <td align="right"><font size=2 face="Arial,Arial,Helvetica,sans-serif">Yes&nbsp;<img src="tickedbox.gif" width="12" height="12"></font></td>
    <td width="10%">&nbsp;</td>
    <td width="45%"><font size=2 face="Arial,Arial,Helvetica,sans-serif">No&nbsp;<img src="emptybox.gif" width="12" height="12"></font></td>
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<P>
<FONT size=2 face="Arial,Arial,Helvetica,sans-serif">If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934.</FONT><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif"> </FONT></P>
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    <td align="right"><font size=2 face="Arial,Arial,Helvetica,sans-serif">Yes <img src="emptybox.gif" width="12" height="12"></font></td>
    <td width="10%">&nbsp;</td>
    <td width="45%"><font size=2 face="Arial,Arial,Helvetica,sans-serif">No&nbsp;<img src="tickedbox.gif" width="12" height="12"></font></td>
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<P>
<FONT size=2 face="Arial,Arial,Helvetica,sans-serif">Note - Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligation under those
Sections.</FONT><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif"> </FONT></P>
<P>
<FONT size=2 face="Arial,Arial,Helvetica,sans-serif">Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.</FONT><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif"> </FONT></P>
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    <td align="right"><font size=2 face="Arial,Arial,Helvetica,sans-serif">Yes&nbsp;<img src="tickedbox.gif" width="12" height="12"></font></td>
    <td width="10%">&nbsp;</td>
    <td width="45%"><font size=2 face="Arial,Arial,Helvetica,sans-serif">No&nbsp;<img src="emptybox.gif" width="12" height="12"></font></td>
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<P>
<FONT size=2 face="Arial,Arial,Helvetica,sans-serif">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in
Rule 12b-2 of the Exchange Act (Check one): </FONT></P>
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    <td width="20%" align="center"><FONT size=2 face="Arial,Arial,Helvetica,sans-serif">Large<br>
      accelerated<br>
filer</FONT><font size=2 face="TimesNewRoman,Times New Roman,Times,serif">&nbsp;</font><FONT size=2 face="Arial,Arial,Helvetica,sans-serif">  <img src="emptybox.gif" width="12" height="12"></FONT></td>
    <td align="center"><font size=2 face="Arial,Arial,Helvetica,sans-serif">Accelerated
    filer&nbsp;<img src="emptybox.gif" width="12" height="12"></font></td>
    <td width="20%" align="center"><font size=2 face="Arial,Arial,Helvetica,sans-serif">Non-<br>
      accelerated filer<br>
      <img src="tickedbox.gif" width="12" height="12"></font></td>
    <td width="20%">&nbsp;</td>
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<P>    <FONT size=2
face="Arial,Arial,Helvetica,sans-serif">Indicate by check mark which financial statement item the Registrant has elected to follow:</FONT></P>
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    <td align="right"><font size=2 face="Arial,Arial,Helvetica,sans-serif">Item
    17&nbsp;<img src="emptybox.gif" width="12" height="12"></font></td>
    <td width="10%">&nbsp;</td>
    <td width="45%"><font size=2 face="Arial,Arial,Helvetica,sans-serif">Item
    18&nbsp;<img src="tickedbox.gif" width="12" height="12"></font></td>
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<P> <FONT size=2
face="Arial,Arial,Helvetica,sans-serif">  If this is an annual report,
    indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).</FONT><FONT size=2 face="TimesNewRoman,Times New
Roman,Times,serif"> </FONT></P>
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    <td align="right"><font size=2 face="Arial,Arial,Helvetica,sans-serif">Yes&nbsp;<img src="emptybox.gif" width="12" height="12"></font></td>
    <td width="10%">&nbsp;</td>
    <td width="45%"><font size=2 face="Arial,Arial,Helvetica,sans-serif">No&nbsp;<img src="tickedbox.gif" width="12" height="12"></font></td>
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<P>
<FONT size=2 face="Arial,Arial,Helvetica,sans-serif">(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)</FONT></P>
<P><FONT size=2
face="Arial,Arial,Helvetica,sans-serif">Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of
  securities under a plan confirmed by a court.</FONT><FONT size=2 face="TimesNewRoman,Times New Roman,Times,serif"> </FONT></P>
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    <td align="right"><font size=2 face="Arial,Arial,Helvetica,sans-serif">Yes&nbsp;<img src="emptybox.gif" width="12" height="12"></font></td>
    <td width="10%">&nbsp;</td>
    <td width="45%"><font size=2 face="Arial,Arial,Helvetica,sans-serif">No&nbsp;<img src="emptybox.gif" width="12" height="12"></font></td>
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<P>
<B><FONT size=2 face="Arial,Bold,Arial,Helvetica,sans-serif">Not Applicable</FONT></B></P>
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<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All references in this Form 20-F to &#8220;us&#8221;, &#8220;we&#8221; or &#8220;the Company&#8221;,
are to British Telecommunications public limited company.</font></p>
<p align="center"><font size="2" face="serif"><b>PART I</b></font></p>
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<font size="2" face="serif">ITEM 1.</font></td>
<td>
<font size="2" face="serif"><b>IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS </b></font></td>
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<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
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<font size="2" face="serif">ITEM 2.</font></td>
<td>
<font size="2" face="serif"><b>OFFER STATISTICS AND EXPECTED TIMETABLE</b></font></td>
</tr>
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<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
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<font size="2" face="serif">ITEM 3.</font></td>
<td>
<font size="2" face="serif"><b>KEY INFORMATION</b></font></td>
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<p align="left"><font size="2" face="serif">3.A  Selected Financial Data</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 3.A of the BT Group plc Annual Report and Form 20-F for the
    year ended March 31, 2006 (the &#8220;BT Group plc 2006 Annual Report&#8221;)
    dated May 31, 2006 by BT Group plc, which is incorporated into this annual
report by reference. </font></p>
<p align="left"><font size="2" face="serif">3.B  Capitalization and Indebtedness</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<p align="left"><font size="2" face="serif">3.C  Reasons for the Offer and Use of Proceeds</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<p align="left"><font size="2" face="serif">3.D  Risk Factors</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the heading &#8220;Business review &#8212; Principal
    risks and uncertainties&#8221; on page 8 of the Annual Report and Form 20-F
    for the financial year ended March 31, 2006 (the &#8220;Annual Report 2006&#8221;)
    contained in the Company&#8217;s Report on Form 6-K dated May 31, 2006 is
    incorporated herein by reference.</font></p>
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<td width="8%">
<font size="2" face="serif">ITEM 4.</font></td>
<td>
<font size="2" face="serif"><b>INFORMATION ON THE COMPANY</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">4.A  History and Development of the Company</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the headings &#8220;Business review &#9472; Introduction&#8221; on
    page 2 and &#8220;Additional information for shareholders &#9472; Background&#8221; on
page 104 and of the Annual Report 2006 is incorporated herein by reference.</font></p>
<p align="left"><font size="2" face="serif">4.B  Business Overview</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the headings &#8220;Business review&#8221; on
    pages 2 to 10 and &#8220;Additional information for shareholders &#9472; Cautionary
    statement regarding forward-looking statements&#8221; on page&nbsp;104 of
    the Annual Report 2006.</font></p>
<p align="center"><font face="serif" size="2">1</font></p>
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<p align="left"><font size="2" face="serif">4.C  Organizational Structure</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the headings &#8220;Business review &#9472; Introduction&#8221; on
    page 2 and &#8220;Subsidiary undertakings and associate&#8221; on
    page&nbsp;103 of the Annual Report 2006 is incorporated herein by reference.</font></p>
<p align="left"><font size="2" face="serif">4.D  Property, Plants and Equipment</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information set forth under the heading &#8220;Business review &#9472; Property&#8221; on
page 6 of the Annual Report 2006 is incorporated herein by reference.</font></p>
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    <td width="8%"> <font size="2" face="serif">ITEM 4A.</font></td>
    <td><b><font size="2" face="serif">UNRESOLVED STAFF COMMENTS</font></b></td>
  </tr>
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<p><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.</font></p>
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<font size="2" face="serif">ITEM 5.</font></td>
<td>
<font size="2" face="serif"><b>OPERATING AND FINANCIAL REVIEW AND PROSPECTS</b></font></td>
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<p align="left"><font size="2" face="serif">5.A  Operating Results</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the heading &#8220;Financial Review&#8221; on
    pages 11 to 22 and &#8220;Additional information for shareholders &#9472; Cautionary
    statement regarding forward-looking statements&#8221; on
page 104 of the Annual Report 2006 is incorporated herein by reference. The discussion
    of the 2005 financial year on pages 7 to 20 of the financial
    statements and supporting notes on pages 25 to 80 of the company&#8217;s
    Annual Report and Form 20-F 2005, dated June 1, 2005 (&#8220;the
    2005 Data&#8221;) are incorporated by reference.</font></p>
<p align="left"><font size="2" face="serif">5.B  Liquidity and Capital Resources</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information set forth under the headings:</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="3%"></td>
<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">&#8220;Financial Review&#8221; on
page 11;</font></td>
</tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
  <td></td>
  <td></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign="top">
<td width="3%"></td>
<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">&#8220;Consolidated financial statements &#9472; Notes
to the financial statements &#9472; Loans and other borrowings&#8221; on pages&nbsp;53
and
54;</font></td>
</tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
  <td></td>
  <td></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign="top">
<td width="3%"></td>
<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">&#8220;Consolidated financial statements &#9472; Notes
to the financial statements &#9472; Financial commitments and contingent liabilities&#8221; on
page 58; </font></td>
</tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
  <td></td>
  <td></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign="top">
<td width="3%"></td>
<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">&#8220;Consolidated financial statements &#9472; Notes
to the financial statements &#9472; Financial instruments and risk management&#8221; on
pages 67 to 72; and</font></td>
</tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
  <td></td>
  <td></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign="top">
<td width="3%"></td>
<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">&#8220;Additional information for shareholders &#9472; Cautionary
statement regarding forward-looking statements&#8221; on
page 104</font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
the Annual Report 2006 is incorporated herein by reference.</font></p>
<p align="left"><font size="2" face="serif">5.C  Research and Development, Patents and Licenses</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 5.C of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference. </font></p>
<p align="left"><font size="2" face="serif">5.D  Trend Information</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 5.D of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference. </font></p>
<p align="center"><font face="serif" size="2">2</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>

<p align="left"><font size="2" face="serif">5.E  Off-Balance Sheet Arrangements</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the heading &#8220;Financial review &#9472; Off-balance
    sheet arrangements&#8221; on page 19 of the Annual Report 2006 is incorporated
    herein by reference.</font></p>
<p align="left"><font size="2" face="serif">5.F  Tabular Disclosure of Contractual Obligations</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information set forth under the
    heading &#8220;Financial Review &#8212; Capital resources&#8221; on page
20 of the Annual Report 2006 is incorporated herein by reference.</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 5.F of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference. </font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="8%">
<font size="2" face="serif">ITEM 6.</font></td>
<td>
<font size="2" face="serif"><b>DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">6.A  Directors and Senior Management</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 6.A of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference. </font></p>
<p align="left"><font size="2" face="serif">6.B  Compensation</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 6.B of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference. </font></p>
<p align="left"><font size="2" face="serif">6.C  Board Practices</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 6.C of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference. </font></p>
<p align="left"><font size="2" face="serif">6.D  Employees</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the headings &#8220;Consolidated financial
statements &#9472; Notes to the financial statements &#9472; Employees&#8221; on
page&nbsp;62 of the Annual Report 2006 is incorporated herein by reference.</font></p>
<p align="left"><font size="2" face="serif">6.E  Share Ownership</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 6.E of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference. </font></p>
<p align="center"><font face="serif" size="2">3</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>

<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="8%">
<font size="2" face="serif">ITEM 7.</font></td>
<td>
<font size="2" face="serif"><b>MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">7.A  Major Shareholders</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 7.A of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference. </font></p>
<p align="left"><font size="2" face="serif">7.B  Related Party Transactions</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the heading &#8220;Consolidated financial
statements &#9472; Notes to the financial statements &#9472; Related party transactions&#8221; on
page&nbsp;57 of the Annual Report 2006 is incorporated herein by reference.</font></p>
<p align="left"><font size="2" face="serif">7.C Interests of Experts and Counsel</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="8%">
<font size="2" face="serif">ITEM 8.</font></td>
<td>
<font size="2" face="serif"><b>FINANCIAL INFORMATION</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">8.A  Consolidated Statements and Other Financial Information</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Item 18 below.</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the information set forth under the headings:</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="3%"></td>
<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">&#8220;Business review &#9472; Legal proceedings&#8221; on
page 6;</font></td>
</tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
  <td></td>
  <td></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign="top">
<td width="3%"></td>
<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">&#8220;Consolidated financial statements &#9472; Notes
to the financial statements &#9472; Financial commitments and contingent liabilities&#8221; on
page 58; and</font></td>
</tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
  <td></td>
  <td></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign="top">
<td width="3%"></td>
<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">&#8220;Additional information for shareholders &#9472; Memorandum
and Articles of Association &#9472; Articles &#9472; Dividends&#8221; on page
106</font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
    the Annual Report 2006 contained in the Company&#8217;s
Report on Form 6-K dated May 31, 2006 is incorporated herein by reference.</font></p>
<p align="left"><font size="2" face="serif">8.B  Significant Changes</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the heading &#8220;Financial review &#9472; Capital
    resources&#8221; on page&nbsp;20 of the Annual Report 2006 contained in the
    Company&#8217;s Report on Form 6-K dated May 31, 2006 is incorporated herein
    by reference.</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="8%">
<font size="2" face="serif">ITEM 9.</font></td>
<td>
<font size="2" face="serif"><b>THE OFFER AND LISTING</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">9.A  Offer and Listing Details</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<p align="left"><font size="2" face="serif">9.B  Plan of Distribution</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<p align="center"><font face="serif" size="2">4</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>

<p align="left"><font size="2" face="serif">9.C  Markets</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<p align="left"><font size="2" face="serif">9.D  Selling Shareholders</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<p align="left"><font size="2" face="serif">9.E  Dilution</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<p align="left"><font size="2" face="serif">9.F  Expenses of the Issue</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="8%">
<font size="2" face="serif">ITEM 10.</font></td>
<td>
<font size="2" face="serif"><b>ADDITIONAL INFORMATION</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">10.A  Share Capital</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<p align="left"><font size="2" face="serif">10.B  Memorandum and Articles of Association</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the heading &#8220;Additional information for
    shareholders &#9472; Memorandum and Articles of Association&#8221; on
pages 105 to 107 of the Annual Report 2006 is incorporated herein by reference.</font></p>
<p align="left"><font size="2" face="serif">10.C  Material Contracts</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 10.C of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference. </font></p>
<p align="left"><font size="2" face="serif">10.D Exchange Controls</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
    applicable</font></p>
<p align="left"><font size="2" face="serif">10.E  Taxation</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable </font></p>
<p align="left"><font size="2" face="serif">10.F  Dividends and Paying Agents</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<p align="left"><font size="2" face="serif">10.G  Statement by Experts</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<p align="center"><font face="serif" size="2">5</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>

<p align="left"><font size="2" face="serif">10.H  Documents on Display</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the heading &#8220;Additional information for
    shareholders &#9472; Documents on display&#8221; on page&nbsp;107 of the
    Annual Report 2006 is incorporated herein by reference.</font></p>
<p align="left"><font size="2" face="serif">10.I Subsidiary Information</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="8%">
<font size="2" face="serif">ITEM 11.</font></td>
<td>
<font size="2" face="serif"><b>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information set forth under the headings:</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="3%"></td>
<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">&#8220;Financial review &#9472; Treasury policy&#8221; on
page 19;</font></td>
</tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
  <td></td>
  <td></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign="top">
<td width="3%"></td>
<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">&#8220;Consolidated financial statements &#9472; Notes
to the financial statements &#9472; Financial instruments and risk management&#8221; on
pages&nbsp;67 to 72</font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
the Annual Report 2006 is incorporated herein by reference.  </font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="8%">
<font size="2" face="serif">ITEM 12.</font></td>
<td>
<font size="2" face="serif"><b>DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<p align="center"><font size="2" face="serif"><b>PART II </b></font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="8%">
<font size="2" face="serif">ITEM 13.</font></td>
<td>
<font size="2" face="serif"><b>DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="8%">
<font size="2" face="serif">ITEM 14.</font></td>
<td>
<font size="2" face="serif"><b>MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="8%">
<font size="2" face="serif">ITEM 15.</font></td>
<td>
<font size="2" face="serif"><b>CONTROLS AND PROCEDURES</b></font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the heading &#8220;Report of the directors &#9472; US
    Sarbanes-Oxley Act of 2002&#8221; on
pages 23 to 24 of the Annual Report 2006 is incorporated herein by reference.</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="8%"><font size="2" face="serif">ITEM 16A.</font></td>
    <td><font size="2" face="serif"><b>AUDIT COMMITTEE FINANCIAL EXPERT </b></font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 16A of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference. </font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="8%"><font size="2" face="serif">ITEM 16B.</font></td>
    <td><font size="2" face="serif"><b>CODE OF
    ETHICS</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 16B of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference. </font></p>
<p align="center"><font face="serif" size="2">6</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="8%"><font size="2" face="serif">ITEM 16C.<b></b></font></td>
    <td><font size="2" face="serif"><b>PRINCIPAL ACCOUNTANT FEES AND SERVICES</b></font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    information set forth under the heading &#8220;Consolidated financial statements &#9472; Notes
    to the financial statements &#9472; Audit services&#8221; on page 66 of the
Annual Report 2006 is incorporated herein by reference.</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="8%"><font size="2" face="serif">ITEM 16E.</font></td>
    <td><font size="2" face="serif"><b>PURCHASE OF EQUITY SECURITIES BY THE ISSUER
    AND AFFILIATED PURCHASERS</b></font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable</font></p>
<p align="center"><font size="2" face="serif"><b>PART III</b></font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="8%"><font size="2" face="serif">ITEM 17.</font> </td>
    <td><font size="2" face="serif"><b>FINANCIAL STATEMENTS</b></font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="8%"><font size="2" face="serif">ITEM 18.</font></td>
    <td><font size="2" face="serif"><b>FINANCIAL STATEMENTS</b></font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
financial information concerning the Company set forth under the headings:</font></p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td width="3%"></td>
<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">&#8220;Report of the independent auditors &#8212; United
States opinion&#8221; on
page 26;</font></td>
</tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td></td>
    <td></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="3%"></td>
    <td width="3%"></td>
    <td width="3%"> <font size="2" face="serif">&#149;</font></td>
    <td> <font size="2" face="serif">&#8220;Accounting Policies&#8221; on
        pages 27 to 34 except the last sentence of (i) Basis of preparation of
        the financial statements on page 27; and</font></td>
  </tr>
</table>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
  <td></td>
  <td></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign="top">
<td width="3%"></td>
<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">&#8220;Consolidated financial statements&#8221; on
pages 35 to 82</font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
    the Annual Report 2006 and the 2005 Data are incorporated herein by reference.<br>
</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="8%"><font size="2" face="serif">ITEM 19.</font></td>
    <td><font size="2" face="serif"><b>EXHIBITS</b></font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following exhibits are filed as part of this annual report:</font></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR align="left" valign="top">
    <TD width="5%" align="left" valign="top"> <FONT size=2 face="serif">1.1</FONT></TD>
    <TD> <FONT size=2 face="serif">Memorandum of Association, incorporated
        by reference to Exhibit 1.1 to the Company&#146;s Annual Report on Form
        20-F dated May 31, 2002.</FONT></TD>
  </TR>
  <TR align="left" valign="top">
    <TD align="left" valign="top"> <FONT size=2 face="serif">1.2</FONT></TD>
    <TD> <FONT size=2 face="serif">Articles of Association, incorporated
        by reference to the Company&#146;s Annual Report on Form 20-F 2004 contained
        in the Company&#146;s Report on Form 6-K dated June 2, 2004 in which
        it was filed as Exhibit 1.2.</FONT></TD>
  </TR>
  <TR align="left" valign="top">
    <TD align="left" valign="top"> <FONT size=2 face="serif">8.1</FONT></TD>
    <TD> <FONT size=2 face="serif">Omitted pursuant to General Instruction
        I of Form 10-K as applied to reports on Form 20-F.</FONT></TD>
  </TR>
  <TR align="left" valign="top">
    <TD align="left" valign="top"> <FONT size=2 face="serif">12.1</FONT></TD>
    <TD> <FONT size=2 face="serif">Section
          302 Certification of Principal Executive Officer.</FONT></TD>
  </TR>
  <TR align="left" valign="top">
    <TD align="left" valign="top"> <FONT size=2 face="serif">12.2</FONT></TD>
    <TD> <FONT size=2 face="serif">Section
          302 Certification of Principal Financial Officer.</FONT></TD>
  </TR>
  <TR align="left" valign="top">
    <TD align="left" valign="top"> <FONT size=2 face="serif">13.1</FONT></TD>
    <TD> <FONT size=2 face="serif">Section
          906 Certifications.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font face="serif" size="2">7</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<a name="p?"></a>

<p align="center"><font size="2" face="serif"><b>SIGNATURES</b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    registrant hereby certifies that it meets all of the requirements for filing
    on Form 20-F and that it has duly caused and authorized the undersigned to
    sign this annual report on its behalf.</font></p>
<p>&nbsp;</p>
<table width="100%" cellspacing="0" cellpadding="0" border="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="left"><font size="2" face="serif"><b>British Telecommunications
          plc</b></font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="left"><font size="2" face="serif">By: /s/ Hanif Lalani</font></td>
  </tr>
  <tr valign="top">
    <td width="3%"><font size="2" face="serif">&nbsp;</font></td>
    <td width="25%"><font size="2" face="serif">&nbsp;</font></td>
    <td width="3%"><font size="2" face="serif">&nbsp;</font></td>
    <td width="3%"><font size="2" face="serif">&nbsp;</font></td>
    <td width="3%"><font size="2" face="serif">&nbsp;</font></td>
    <td width="3%"><font size="2" face="serif">&nbsp;</font></td>
    <td align="left"><div align="left"><font size="2" face="serif">_________________________________</font></div>
    </td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="left"><font size="2" face="serif">Name: Hanif Lalani</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="left"><font size="2" face="serif">Title: Principal Financial Officer</font></td>
  </tr>
</table>
<p align="left"><font size="2" face="serif">Dated: May 31, 2006</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page> <a name="p?"></a>
<p align="center"><b><font face="serif" size="4">SECURITIES AND EXCHANGE COMMISSION</font></b></p>
<p align="center"><font size="2" face="serif"><b>Washington D.C. 20549</b></font></p>
<p align="center"><b><font face="serif" size="5">British Telecommunications plc</font></b></p>
<p align="center"><font face="serif" size="4">Exhibits</font></p>
<p align="center"><font face="serif" size="4">to</font></p>
<p align="center"><font face="serif" size="4">Form 20-F for year ended March
    31,
2006</font></p>
<p align="center"><font size="2" face="serif">As filed with the Securities and
Exchange Commission on May 31, 2006</font></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR align="left" valign="top">
    <TD width="5%" align="left" valign="top"> <FONT size=2 face="serif">1.1</FONT></TD>
    <TD> <FONT size=2 face="serif">Memorandum of Association, incorporated
        by reference to Exhibit 1.1 to the Company&#146;s Annual Report on Form
        20-F dated May 31, 2002.</FONT></TD>
  </TR>
  <TR align="left" valign="top">
    <TD align="left" valign="top"> <FONT size=2 face="serif">1.2</FONT></TD>
    <TD> <FONT size=2 face="serif">Articles of Association, incorporated
        by reference to the Company&#146;s Annual Report on Form 20-F 2004 contained
        in the Company&#146;s Report on Form 6-K dated June 2, 2004 in which
        it was filed as Exhibit 1.2.</FONT></TD>
  </TR>
  <TR align="left" valign="top">
    <TD align="left" valign="top"> <FONT size=2 face="serif">8.1</FONT></TD>
    <TD> <FONT size=2 face="serif">Omitted pursuant to General Instruction
        I of Form 10-K as applied to reports on Form 20-F.</FONT></TD>
  </TR>
  <TR align="left" valign="top">
    <TD align="left" valign="top"><a href="b829433ex12-1.htm"> <FONT size=2 face="serif">12.1</FONT></a></TD>
    <TD><a href="b829433ex12-1.htm"> <FONT size=2 face="serif">Section
          302 Certification of Principal Executive Officer.</FONT></a></TD>
  </TR>
  <TR align="left" valign="top">
    <TD align="left" valign="top"><a href="b829433ex12-2.htm"> <FONT size=2 face="serif">12.2</FONT></a></TD>
    <TD><a href="b829433ex12-2.htm"> <FONT size=2 face="serif">Section
          302 Certification of Principal Financial Officer.</FONT></a></TD>
  </TR>
  <TR align="left" valign="top">
    <TD align="left" valign="top"><a href="b829433ex13-1.htm"> <FONT size=2 face="serif">13.1</FONT></a></TD>
    <TD><a href="b829433ex13-1.htm"> <FONT size=2 face="serif">Section
          906 Certifications.</FONT></a></TD>
  </TR>
</TABLE>
<p align="center">&nbsp;</p>
<hr noshade align="center" width="100%" size="2">
</body>
</html>
[{"type": "20-F", "sequence": "1", "filename": "b829433-20f.htm", "secsgml_size_bytes": 52165}]
{"company-data": {"conformed-name": "BRITISH TELECOMMUNICATIONS PLC /ADR", "cik": "0000820534", "assigned-sic": "4813", "irs-number": "000000000"}, "filing-values": {"form-type": "20-F", "act": "34", "file-number": "002-94004", "film-number": "06875641"}, "business-address": {"street1": "81 NEWGATE ST", "city": "LONDON", "state": "X0", "zip": "EC1A 7A5", "phone": "0114402073565000"}, "mail-address": {"street1": "81 NEWGATE ST", "city": "LONDON", "state": "X0", "zip": "EC1A 7A5"}}
Prepared and filed by St Ives Burrups
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 20
    - F
(Mark
    One)
REGISTRATION STATEMENT
        PURSUANT TO SECTION 12(b) OR (g)
OF
    THE SECURITIES EXCHANGE ACT OF 1934
OR
ANNUAL
    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
    EXCHANGE ACT OF 1934
For
    the fiscal year ended 31 March 2006
OR
TRANSITION
        REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
OR
SHELL
        COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
    EXCHANGE ACT OF 1934
Date
    of event requiring this shell company report
..................................
For
    the transition period from
_______________
to
_______________
Commission File
    Number: 333-12356
British
    Telecommunications plc
(Exact
    name of Registrant as specified in its charter)
Not Applicable
England and Wales
(Translation of
    Registrant's name into English)
(Jurisdiction of
    incorporation or organization)
BT Centre
81 Newgate
Street, London, EC1A 7AJ
England
(address of principal executive offices)
Securities registered or to be registered pursuant to Section 12(b) of the Act: None
Securities registered or to be registered pursuant to Section 12(g) of the Act: None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
$3,000,000,000 8
1
/
8
% Notes Due 2010
$2,800,000,000
8
5
/
8
%
Notes Due 2030
Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the Annual Report:
8,689,755,905 Ordinary Shares, of 25p each
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes
No
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934.
Yes
No
Note - Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligation under those
Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in
Rule 12b-2 of the Exchange Act (Check one):
Large
accelerated
filer
Accelerated
    filer
Non-
accelerated filer
Indicate by check mark which financial statement item the Registrant has elected to follow:
Item
    17
Item
    18
If this is an annual report,
    indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).
Yes
No
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of
  securities under a plan confirmed by a court.
Yes
No
Not Applicable
All references in this Form 20-F to "us", "we" or "the Company",
are to British Telecommunications public limited company.
PART I
ITEM 1.
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not applicable
ITEM 2.
OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable
ITEM 3.
KEY INFORMATION
3.A  Selected Financial Data
Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 3.A of the BT Group plc Annual Report and Form 20-F for the
    year ended March 31, 2006 (the "BT Group plc 2006 Annual Report")
    dated May 31, 2006 by BT Group plc, which is incorporated into this annual
report by reference.
3.B  Capitalization and Indebtedness
Not applicable
3.C  Reasons for the Offer and Use of Proceeds
Not applicable
3.D  Risk Factors
The
    information set forth under the heading "Business review — Principal
    risks and uncertainties" on page 8 of the Annual Report and Form 20-F
    for the financial year ended March 31, 2006 (the "Annual Report 2006")
    contained in the Company's Report on Form 6-K dated May 31, 2006 is
    incorporated herein by reference.
ITEM 4.
INFORMATION ON THE COMPANY
4.A  History and Development of the Company
The
    information set forth under the headings "Business review ─ Introduction" on
    page 2 and "Additional information for shareholders ─ Background" on
page 104 and of the Annual Report 2006 is incorporated herein by reference.
4.B  Business Overview
The
    information set forth under the headings "Business review" on
    pages 2 to 10 and "Additional information for shareholders ─ Cautionary
    statement regarding forward-looking statements" on page 104 of
    the Annual Report 2006.
1
4.C  Organizational Structure
The
    information set forth under the headings "Business review ─ Introduction" on
    page 2 and "Subsidiary undertakings and associate" on
    page 103 of the Annual Report 2006 is incorporated herein by reference.
4.D  Property, Plants and Equipment
The information set forth under the heading "Business review ─ Property" on
page 6 of the Annual Report 2006 is incorporated herein by reference.
ITEM 4A.
UNRESOLVED STAFF COMMENTS
None.
ITEM 5.
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
5.A  Operating Results
The
    information set forth under the heading "Financial Review" on
    pages 11 to 22 and "Additional information for shareholders ─ Cautionary
    statement regarding forward-looking statements" on
page 104 of the Annual Report 2006 is incorporated herein by reference. The discussion
    of the 2005 financial year on pages 7 to 20 of the financial
    statements and supporting notes on pages 25 to 80 of the company's
    Annual Report and Form 20-F 2005, dated June 1, 2005 ("the
    2005 Data") are incorporated by reference.
5.B  Liquidity and Capital Resources
The information set forth under the headings:
•
"Financial Review" on
page 11;
•
"Consolidated financial statements ─ Notes
to the financial statements ─ Loans and other borrowings" on pages 53
and
54;
•
"Consolidated financial statements ─ Notes
to the financial statements ─ Financial commitments and contingent liabilities" on
page 58;
•
"Consolidated financial statements ─ Notes
to the financial statements ─ Financial instruments and risk management" on
pages 67 to 72; and
•
"Additional information for shareholders ─ Cautionary
statement regarding forward-looking statements" on
page 104
of
the Annual Report 2006 is incorporated herein by reference.
5.C  Research and Development, Patents and Licenses
Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 5.C of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference.
5.D  Trend Information
Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 5.D of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference.
2
5.E  Off-Balance Sheet Arrangements
The
    information set forth under the heading "Financial review ─ Off-balance
    sheet arrangements" on page 19 of the Annual Report 2006 is incorporated
    herein by reference.
5.F  Tabular Disclosure of Contractual Obligations
The information set forth under the
    heading "Financial Review — Capital resources" on page
20 of the Annual Report 2006 is incorporated herein by reference.
Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 5.F of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference.
ITEM 6.
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
6.A  Directors and Senior Management
Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 6.A of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference.
6.B  Compensation
Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 6.B of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference.
6.C  Board Practices
Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 6.C of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference.
6.D  Employees
The
    information set forth under the headings "Consolidated financial
statements ─ Notes to the financial statements ─ Employees" on
page 62 of the Annual Report 2006 is incorporated herein by reference.
6.E  Share Ownership
Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 6.E of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference.
3
ITEM 7.
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
7.A  Major Shareholders
Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 7.A of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference.
7.B  Related Party Transactions
The
    information set forth under the heading "Consolidated financial
statements ─ Notes to the financial statements ─ Related party transactions" on
page 57 of the Annual Report 2006 is incorporated herein by reference.
7.C Interests of Experts and Counsel
Not applicable
ITEM 8.
FINANCIAL INFORMATION
8.A  Consolidated Statements and Other Financial Information
See Item 18 below.
In addition, the information set forth under the headings:
•
"Business review ─ Legal proceedings" on
page 6;
•
"Consolidated financial statements ─ Notes
to the financial statements ─ Financial commitments and contingent liabilities" on
page 58; and
•
"Additional information for shareholders ─ Memorandum
and Articles of Association ─ Articles ─ Dividends" on page
106
of
    the Annual Report 2006 contained in the Company's
Report on Form 6-K dated May 31, 2006 is incorporated herein by reference.
8.B  Significant Changes
The
    information set forth under the heading "Financial review ─ Capital
    resources" on page 20 of the Annual Report 2006 contained in the
    Company's Report on Form 6-K dated May 31, 2006 is incorporated herein
    by reference.
ITEM 9.
THE OFFER AND LISTING
9.A  Offer and Listing Details
Not applicable
9.B  Plan of Distribution
Not applicable
4
9.C  Markets
Not applicable
9.D  Selling Shareholders
Not applicable
9.E  Dilution
Not applicable
9.F  Expenses of the Issue
Not applicable
ITEM 10.
ADDITIONAL INFORMATION
10.A  Share Capital
Not applicable
10.B  Memorandum and Articles of Association
The
    information set forth under the heading "Additional information for
    shareholders ─ Memorandum and Articles of Association" on
pages 105 to 107 of the Annual Report 2006 is incorporated herein by reference.
10.C  Material Contracts
Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 10.C of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference.
10.D Exchange Controls
Not
    applicable
10.E  Taxation
Not applicable
10.F  Dividends and Paying Agents
Not applicable
10.G  Statement by Experts
Not applicable
5
10.H  Documents on Display
The
    information set forth under the heading "Additional information for
    shareholders ─ Documents on display" on page 107 of the
    Annual Report 2006 is incorporated herein by reference.
10.I Subsidiary Information
Not applicable
ITEM 11.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information set forth under the headings:
•
"Financial review ─ Treasury policy" on
page 19;
•
"Consolidated financial statements ─ Notes
to the financial statements ─ Financial instruments and risk management" on
pages 67 to 72
of
the Annual Report 2006 is incorporated herein by reference.
ITEM 12.
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
Not applicable
PART II
ITEM 13.
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
None.
ITEM 14.
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
Not applicable
ITEM 15.
CONTROLS AND PROCEDURES
The
    information set forth under the heading "Report of the directors ─ US
    Sarbanes-Oxley Act of 2002" on
pages 23 to 24 of the Annual Report 2006 is incorporated herein by reference.
ITEM 16A.
AUDIT COMMITTEE FINANCIAL EXPERT
Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 16A of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference.
ITEM 16B.
CODE OF
    ETHICS
Omitted
    pursuant to General Instruction I of Form 10-K as applied to reports on Form
    20-F. See Item 16B of the BT Group plc 2006 Annual Report which is incorporated
into this annual report by reference.
6
ITEM 16C.
PRINCIPAL ACCOUNTANT FEES AND SERVICES
The
    information set forth under the heading "Consolidated financial statements ─ Notes
    to the financial statements ─ Audit services" on page 66 of the
Annual Report 2006 is incorporated herein by reference.
ITEM 16E.
PURCHASE OF EQUITY SECURITIES BY THE ISSUER
    AND AFFILIATED PURCHASERS
Not
applicable
PART III
ITEM 17.
FINANCIAL STATEMENTS
Not
applicable
ITEM 18.
FINANCIAL STATEMENTS
The
financial information concerning the Company set forth under the headings:
•
"Report of the independent auditors — United
States opinion" on
page 26;
•
"Accounting Policies" on
        pages 27 to 34 except the last sentence of (i) Basis of preparation of
        the financial statements on page 27; and
•
"Consolidated financial statements" on
pages 35 to 82
of
    the Annual Report 2006 and the 2005 Data are incorporated herein by reference.
ITEM 19.
EXHIBITS
The
following exhibits are filed as part of this annual report:
1.1
Memorandum of Association, incorporated
        by reference to Exhibit 1.1 to the Company's Annual Report on Form
        20-F dated May 31, 2002.
1.2
Articles of Association, incorporated
        by reference to the Company's Annual Report on Form 20-F 2004 contained
        in the Company's Report on Form 6-K dated June 2, 2004 in which
        it was filed as Exhibit 1.2.
8.1
Omitted pursuant to General Instruction
        I of Form 10-K as applied to reports on Form 20-F.
12.1
Section
          302 Certification of Principal Executive Officer.
12.2
Section
          302 Certification of Principal Financial Officer.
13.1
Section
          906 Certifications.
7
SIGNATURES
The
    registrant hereby certifies that it meets all of the requirements for filing
    on Form 20-F and that it has duly caused and authorized the undersigned to
    sign this annual report on its behalf.
British Telecommunications
          plc
By: /s/ Hanif Lalani
_________________________________
Name: Hanif Lalani
Title: Principal Financial Officer
Dated: May 31, 2006
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
British Telecommunications plc
Exhibits
to
Form 20-F for year ended March
    31,
2006
As filed with the Securities and
Exchange Commission on May 31, 2006
1.1
Memorandum of Association, incorporated
        by reference to Exhibit 1.1 to the Company's Annual Report on Form
        20-F dated May 31, 2002.
1.2
Articles of Association, incorporated
        by reference to the Company's Annual Report on Form 20-F 2004 contained
        in the Company's Report on Form 6-K dated June 2, 2004 in which
        it was filed as Exhibit 1.2.
8.1
Omitted pursuant to General Instruction
        I of Form 10-K as applied to reports on Form 20-F.
12.1
Section
          302 Certification of Principal Executive Officer.
12.2
Section
          302 Certification of Principal Financial Officer.
13.1
Section
          906 Certifications.