BT 1997 Annual Report Download - page 66

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66
Regulatory statistics and information
Price control
Under the company’s licence, there are restrictions on the prices it may charge for its main switched telephone services. The
company’s performance against this price constraint, which is linked to the annual movement in the retail price index (RPI), is
shown below.
YEAR COMMENCING 1 AUGUST
1992 1993 1994 1995 1996
% RPI movement for the relevant period (a) 3.88 1.22 2.62 3.52 2.14
RPI formula in effect (6.25) (7.50) (7.50) (7.50) (7.50)
% required reduction in prices (b) (0.95)(c) (6.94) (4.86) (1.38) (4.92)
% reduction in prices overall (0.47) (6.95) (7.35) (1.82) (5.27)(d)
(a) Annual increase in RPI to previous June.
(b) After permitted carry forward of any unused allowance or shortfall from previous years.
(c) After adjustment for a shortfall in directory enquiry revenue in the years commencing 1 August 1990 and 1991.
(d) Price changes implemented to 20 May 1997.
Exchange line disconnections for non-payment of bills YEAR ENDED 31 MARCH 1997
April May June July Aug Sep
Business (’000) 20 21 19 22 72 22
Residential (’000) 61 50 52 67 17 79
Total disconnections (’000) 81 71 71 89 89 101
Oct Nov Dec Jan Feb Mar
Business (’000) 20 15 12 24 22 21
Residential (’000) 100 84 67 109 98 86
Total disconnections (’000) 120 99 79 133 120 107
BT’s policy is not to disconnect customers for non-payment of bills unless 28 days have elapsed from the despatch of the
relevant bill, except in cases of suspected fraud. Customers who are late in paying receive at least two reminders from BT, one
of which is normally given by telephone, before the company considers disconnection. BT takes this action only as a last resort
after giving customers an opportunity to agree revised payment plans.
Classified directory business in the UK
The company is providing the following information with respect to its classified directory business in the UK in accordance
with undertakings made with the Office of Fair Trading in July 1996. For the year ended 31 March 1997, the classified directory
business of BT made an operating profit of £166m on turnover of £389m and, at 31 March 1997, it employed net assets of
£118m. Since the classified directory business is integrated with the company’s wider operations, this financial information
incorporates the effects of certain apportionments and allocations of expenditures and assets.
BT is required to submit annual audited accounts in respect of the classified directory business to the Director of the Office of
Fair Trading within nine months of the company’s financial year end. Copies of these accounts, when available, may be
obtainedfreeofchargefromtheFinancial Director, Yellow Pages at Queens Walk, Reading, RG1 7PT.
Financial, operational and regulatory statistics have been restated where necessary to provide consistency with the
presentation of the 1997 figures.