BT Group PLC BT response to Wholesale Local Access review (7750F)
23 February 2018 - 8:18PM
UK Regulatory
TIDMBT.A
RNS Number : 7750F
BT Group PLC
23 February 2018
DC18-064 February 23, 2018
WLA review - BT financial impact
BT notes the publication of Ofcom's Wholesale Local Access
review (WLA) draft statement this morning.
Today's statement from Ofcom gives us certainty on the pricing
of key products for the next three years.
BT estimates that the price changes in today's Ofcom WLA draft
statement, for the directly charge controlled products, will have a
year on year adverse financial impact on Openreach's revenue and
profit in 2018/19 in the range GBP80m - GBP120m. There will be
further year on year impacts on Openreach, resulting from price
reductions to the directly charge controlled products, in each of
the successive two financial years in the range of low to mid tens
of millions of pounds. Additionally, Openreach's cost base will
increase as a result of meeting the more demanding minimum service
levels required in WLA markets.
BT anticipates a further adverse financial impact on Openreach's
revenue and profit as a result of market pressure on the wholesale
prices of other products not directly charge controlled in the WLA
draft statement.
The net impact at the Group level will depend on the retail
market dynamics.
We are considering the implications for full and fair
competition of the restriction on BT's ability to vary its FTTC and
G.fast wholesale rental charges between different geographic
areas.
We can now look forward and get on with the job of making
fibre-to-the-premises broadband available to three million homes
and business by the end of 2020.
For further information
Enquiries about this news release should be made to the BT Group
Newsroom 020 7356 5369. From outside the UK dial + 44 20 7356 5369.
All news releases can be accessed at our web site. You can also
subscribe to receive all BT announcements here and you can follow
us on Twitter here.
About BT
BT's purpose is to use the power of communications to make a
better world. It is one of the world's leading providers of
communications services and solutions, serving customers in 180
countries. Its principal activities include the provision of
networked IT services globally; local, national and international
telecommunications services to its customers for use at home, at
work and on the move; broadband, TV and internet products and
services; and converged fixed-mobile products and services. BT
consists of six customer-facing lines of business: Consumer, EE,
Business and Public Sector, Global Services, Wholesale and
Ventures, and Openreach.
For the year ended 31 March 2017, BT Group's reported revenue
was GBP24,062m with reported profit before taxation of
GBP2,354m.
British Telecommunications plc (BT) is a wholly-owned subsidiary
of BT Group plc and encompasses virtually all businesses and assets
of the BT Group. BT Group plc is listed on stock exchanges in
London and New York.
For more information, visit www.btplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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