BT 2015 Annual Report Download - page 48

46 BT Group plc
Annual Report 2015
Risk description Impact Link to strategy
Communications industry regulation
Regulation impacts our activities across all jurisdictions.
n the UK fco can reuire us to provide specific wholesale
services on specified ters followin aret reviews. hescope
and for of that reulation is reviewed ever three ears and
can include controls on the level of prices we can chare for
reulated inputs. t has powers to investiate and enforce
the reulator rules in place and can ipose fines on us for
non-copliance. fco also has powers to reulate the ters
on which we are supplied with certain services  for instance
obile call terination and wholesale access to certain pa-
channels  and this ipacts our costs and the scope of services
we are able to provide to our custoers. fco can also resolve
disputes between  and other counications providers
about the ters on which services are supplied.
utside the UK eneral licensin reuireents can restrict the
etent to which we can enter arets and copete. eulation
will also define the ters on which we can purchase e
wholesale services fro others.
eulator reuireents and constraints can directl ipact
our abilit to copete eectivel and earn revenues.
eulator ipacts are hihest in the UK where  is subect
to direct reulation in a nuber of areas followin periodic
aret reviews. ased on the latest eulator inancial
tateents for 011 around .bn of our revenue
ofwhich .bn is to downstrea parts of  isfro
wholesale arets where we have been found to have
inificant aret ower followin aret reviews. ost of
these revenues are subect to chare controls which reuire
us to reduce our prices annuall b a defined percentae in
real ters. ontrols are usuall set for three ears and will
constrain revenues durin that period.
hen other s as fco to resolve disputes with us there
is a ris that fco a set the prices at which services ust
be supplied andor reuire us to provide specific services.
ncertain circustances fco can adust historic prices
andreuire us to ae repaents to s.
eulation outside the UK can ipact i our revenue
bliitin our abilit to copete throuh overl-restrictive
licensin reuireents or ineective reulation of access to
other networs and ii our costs b definin and controllin
the ters of access to necessar reulated inputs.
 eliver superior
custoer service
 Transform our costs
Business integrity and ethics
We are committed to maintaining high standards of ethical
behaviour, and have a zero tolerance approach to bribery
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e have to copl with a wide rane of local and international
anti-corruption and briber laws. n particular the UK
riber ct and U orein and orrupt ractices ct 
provide coprehensive anti-briber leislation. oth have
etraterritorial reach and so cover our lobal operations.
sweepand loball we are increasinl operatin in
countries identified as havin a hiher ris of briber and
corruption. ealso have to ensure copliance with trade
sanctions and iport and eport controls.
ailure b our eploees or associated persons such as
suppliers or aents to copl with anti-corruption and
bribery and sanctions legislation could result in substantial
penalties criinal prosecution and sinificant daae to our
reputation. his could in turn ipact our future revenue and
cash ow the etent of which would depend on the nature
of the breach the leislation concerned and an associated
penalties. lleations of corruption or briber or violation of
sanctions regulations could also lead to reputation and brand
daae with investors reulators and custoers.
 eliver superior
custoer service
 Transform our costs