SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 6-K

                        Report of Foreign Private Issuer


                      Pursuant to Rule 13a-16 or 15d-16 of
                       the Securities Exchange Act of 1934



                                 26 January 2005


                                  BT Group plc
                 (Translation of registrant's name into English)


                                    BT Centre
                                81 Newgate Street
                                     London
                                    EC1A 7AJ
                                     England

                    (Address of principal executive offices)



Indicate by check mark whether the registrant  files or will file annual reports
under cover Form 20-F or Form 40-F.

                         Form 20-F..X... Form 40-F.....

Indicate by check mark whether the  registrant  by  furnishing  the  information
contained  in this  Form is  also  thereby  furnishing  the  information  to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

                               Yes ..... No ..X..


If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- ________



Enclosures:  1.  Bristol-Myers Squibb contract announcement made on 26 January 
                 2005


JANUARY 26, 2005

BT signs multi-year managed services agreement with Bristol- Myers Squibb

BT (NYSE:  BT) today  announced  it has  signed a  multi-year  managed  services
agreement with Bristol-Myers Squibb (NYSE: BMY).

Under the terms of the contract, BT will manage Bristol-Myers Squibb's local and
wide area network  infrastructure  globally.  As part of the agreement,  BT will
migrate these services to a state of the art, high speed,  IP-based  global MPLS
infrastructure.

Ben Verwaayen,  Chief  Executive of BT, said, "To be chosen for this contract by
Bristol-Myers  Squibb is a  significant  achievement  for BT and speaks  volumes
about our  credentials  as the partner of choice for global  businesses.  We are
committed to delivering Bristol-Myers Squibb real value by sharing our expertise
and access to the latest technology,  as we are doing with noteworthy  customers
such as National Health Service, the Bavarian State Government, and others."

Chuck Pol, President and Chief Operating Officer, BT Americas stated, "This is a
landmark  deal for BT. This is further  evidence of our  leadership in providing
global  solutions  for our  customers,  and builds on the success we've had with
customers such as Unilever,  the American Stock  Exchange,  and others.  We look
forward to providing an outstanding service to Bristol-Myers Squibb."

About BT

BT is one of the world's leading providers of  communications  solutions serving
customers in Europe,  the Americas and Asia Pacific.  Its  principal  activities
include  IT  and  networking   services,   local,   national  and  international
telecommunications  services,  and higher-value  broadband and internet products
and services.

BT consists principally of three lines of business:

BT Retail,  providing fixed and mobile communications services and solutions and
IT and  networking  services to more than 20 million  business  and  residential
customers  in the UK. It is also a leading UK  internet  services  provider.  BT
Wholesale,  providing  network services and solutions within the UK to more than
600 fixed and mobile operators and service providers  including the provision of
broadband,  private  circuits.  BT Global Services,  providing IT and networking
services  internationally  to meet the needs of  multi-site  organisations  with
European operations.  BT Global Services operates in more than 130 countries and
also offers international carrier services.

In the year ended 31 March 2004, BT Group's turnover was GBP18,519  million with
profit before goodwill amortization,  exceptional items and taxation of GBP2,013
million.

BT Group plc is  listed  on stock  exchanges  in  London  and New York.  British
Telecommunications  plc  (BT)  is a  wholly-owned  subsidiary  of BT  Group  and
encompasses virtually all businesses and assets of the BT Group.

For more information, visit www.bt.com/aboutbt


Signatures

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


BT Group PLC
(Registrant)  
 

By: /s/ Patricia Day
--------------------
Patricia Day, Assistant Secretary. Head of Shareholder Services
 

Date: 26 January 2005