BT 2001 Annual Report Download - page 61
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ability to provide competitive services. For example, presently
there is evidence of some substitution by customers who use
their mobile phones for day-to-day voice calls in place of
making such calls over the ¢xed network. Additionally, some
calls are now being routed over the internet in place of the
traditional switched network. If these trends accelerate, our
¢xed network assets may be used uneconomically and our
investment in these assets may not be recovered through pro¢ts
on ¢xed network calls and line rentals. Impairment write-downs
may be incurred and margins may decline if ¢xed costs cannot
be reduced in line with falling turnover.
Health concerns from mobile phone handsets and masts
may reduce customer demand and affect profitability.
There has been speculation that mobile phone handsets
give o¡ harmful radiation to their users and that transmitter
masts emit such radiation, adversely a¡ecting the health of
people in their vicinity. Although research has failed to provide
evidence of any links between such radiation and long-term
harmful e¡ects on people’s health, HM Government has issued
a guideline, suggesting that people below the age of 18 should
limit the time spent using mobile phones and some schools
have not allowed masts to be sited on their premises.
Increased speculation regarding health risks or any
subsequent substantiation of such risks may result in an
adverse e¡ect on customer demand, may a¡ect the future
sitings of masts and/or may lead to legal compensation claims
or other liabilities.
BT Annual report and Form 20-F 61