BT 2001 Annual Report Download - page 143

Cautionary statement regarding forward-looking statements
Certain statements in this annual report are forward-looking and are made in reliance on the safe harbour provisions of
the US Private Securities Litigation Reform Act of 1995. These statements include, without limitation, those concerning:
BT’s strategy and its ability to achieve it; the benefits and advantages of the restructuring; BT’s debt reduction plans;
BT’s credit ratings; the plans to demerge BT Wireless, the structure of the demerger and the composition of the
demerged group; BT’s plans regarding Yell; BT’s plans regarding Concert; growth of, and opportunities available in, the
communications industry and BT’s positioning to take advantage of those opportunities; expectations regarding
competition, prices and growth; expectations regarding the convergence of technologies; expectations regarding the future
of the mobile data market; BT’s network development and expansion plans; plans for the launch of new products and
services; expectations regarding participation in bids for third-generation (3G) licences outside the United Kingdom; the
impact of regulatory initiatives on operations, including the regulation of the UK fixed wholesale and retail businesses;
BT’s possible or assumed future results of operations and/or those of its associates and joint ventures; capital expenditure
and investment plans; adequacy of capital; financing plans; and those preceded by, followed by, or that include the words
‘‘believes’’, ‘‘expects’’, ‘‘anticipates’’, ‘‘intends’’ or similar expressions.
Although BT believes that the expectations reflected in these forward-looking statements are reasonable, it can give
no assurance that these expectations will prove to have been correct. Because these statements involve risks and
uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.
Factors that could cause differences between actual results and those implied by the forward-looking statements
include, but are not limited to: material adverse changes in economic conditions in the markets served by BT and its lines
of business; future regulatory actions and conditions in its operating areas, including competition from others in the
United Kingdom and other international communications markets; selection by BT and its lines of business of the
appropriate trading and marketing models for its products and services; the costs associated with deploying GPRS
technology and building 3G networks and the speculative nature of future revenues and earnings streams from these
investments; technological innovations, including the cost of developing new products and the need to increase
expenditures for improving the quality of service; the anticipated benefits and advantages of new technologies not being
realised; developments in the convergence of technologies; prolonged adverse weather conditions resulting in a material
increase in overtime, staff or other costs; the timing of entry and profitability of BT and its lines of business in certain
communication markets; significant changes in market shares for BT and its principal products and services; fluctuations in
foreign currency exchange rates and interest rates; to the extent that BT chooses to sell assets or minority interests in its
subsidiaries, prevailing market levels for such sales; and general financial market conditions affecting BT’s ability to
succeed with its restructuring. Certain of these factors are discussed in more detail elsewhere in this annual report
including, without limitation, in ‘‘Risk Factors’’.
Background
Telephone services in almost all of the UK were, until 1981, provided by the Post O⁄ce, which was a government department
until 1969 when it was established as a state public corporation. In 1981, the postal and telecommunications services of the Post
O⁄ce became the responsibility of two separate corporations, with British Telecommunications ^ under the trading name of
British Telecom ^ taking over the telecommunications business.
As a result of the Telecommunications Act, which received Royal Assent in 1984, the company was incorporated in the
United Kingdom under the Companies Acts 1948 to 1981 on 1 April 1984 as a public limited company wholly owned by
HM Government of the United Kingdom. The transfer of property, rights and liabilities of the corporation to British
Telecommunications plc was made on 6 August 1984.
In November 1984, HM Government o¡ered 3,012 million ordinary shares (50.2% of the total issued ordinary shares) to the
public. The share sale was fully subscribed. British Telecom shares made their debut on the London Stock Exchange on
3 December 1984.
British Telecommunications plc has been trading as BT since April 1991.
Additional information for shareholders
BT Annual report and Form 20-F 143