BT 2002 Annual Report Download - page 141

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 relate to analyses and other information which are
based on forecasts of future results and estimates of amounts not yet determinable. These statements include, without
limitation, those concerning: BT's strategy and its ability to achieve it; BT's debt reduction plans; BT's credit ratings; BT's
plans regarding the re-integration of Concert; growth of, and opportunities available in, the communications industry and
BT's positioning to take advantage of those opportunities; expectations regarding competition, market shares, prices and
growth; expectations regarding the convergence of technologies; BT's network development and expansion plans; plans
for the launch of new products and services; network performance and quality; the impact of regulatory initiatives on
operations, including the regulation of the UK ®xed wholesale and retail businesses; BT's possible or assumed future
results of operations and/or those of its associates and joint ventures; BT's future dividend policy; capital expenditure and
investment plans; adequacy of capital; ®nancing plans; demand for and access to broadband and the promotion of
broadband by third party service providers; and those preceded by, followed by, or that include the words ``believes'',
``expects'', ``anticipates'', ``intends'' or similar expressions.
Although BT believes that the expectations re¯ected 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 UK 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; technological innovations, including the cost of developing new products
and the need to increase expenditures for improving the quality of service; the anticipated bene®ts 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 pro®tability of BT and its lines of
business in certain communication markets; signi®cant changes in market shares for BT and its principal products and
services; ¯uctuations 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 ®nancial market conditions affecting
BT's performance. 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 Of®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 Of®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, British Telecommunications plc was
incorporated in England and Wales under the Companies Acts 1948 to 1981 on 1 April 1984 as a public limited company
wholly owned by the UK Government. The transfer of property, rights and liabilities of the corporation to British
Telecommunications plc was made on 6 August 1984.
In November 1984, the UK Government offered 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. From April 1991, British Telecommunications plc traded as BT.
In December 1991, the UK Government sold over half its remaining shares in BT, retaining a holding of about 22%. It
sold this residual holding in July 1993. Subsequently, in September 1997, the UK Government redeemed at par a special
rights redeemable preference share to which certain special rights attached.
In 1985, Cellnet was launched as a joint venture between British Telecom and Securicor, which held 40% of the
company. BT acquired full control of Cellnet (now O2 UK ± part of mmO2 plc) by acquiring Securicor's minority holding in
November 1999.
In January 2000, BT and AT&T established Concert as a 50/50 joint venture serving customers around the world and
transferred their trans-border assets and operations to Concert. On 1 April 2002, BT completed the unwind of Concert,
which involved the return of Concert's businesses, customer accounts and networks to the two parent companies.
BT Group was formed when the mmO2 business, comprising what had been BT's mobile activities in the UK, the
Netherlands, Germany and the Republic of Ireland, was demerged on 19 November 2001. British Telecommunications
plc's shares ceased trading on the London, New York and Tokyo stock exchanges on 16 November 2001. BT Group plc's
shares commenced trading on the London and New York stock exchanges on 19 November 2001.
Additional information for shareholders
140 BT Group Annual Report and Form 20-F 2002