BT 2005 Annual Report Download - page 23

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opinion, the company has fulfilled its obligations to
ensure the availability of the required funds. This has
been done by BT.
Relationship with HM Government
The UK Government, collectively, is our largest customer,
but the provision of services to any one department or
agency of the UK Government does not comprise a
material proportion of our revenues. Except as described
below, the commercial relationship between BT as a
supplier and the UK Government as customer has been on
a normal customer and supplier basis.
We can, however, be required by law to do certain
things and provide certain services for the UK
Government. General conditions made under the
Communications Act 2003 require all providers of public
telephone networks and/or publicly available telephone
services, including BT, on the request of and in
consultation with the authorities, to make, and if
necessary implement, plans for the provision or
restoration of services in connection with disasters.
Furthermore, the Civil Contingencies Act 2004, contains
provisions enabling obligations to be imposed on
providers of public electronic communications networks,
including BT, in connection with civil contingency
planning. In addition, the Secretary of State has statutory
powers to require us to take certain actions in the
interests of national security and international relations.
Legal proceedings
The company does not believe that there are any pending
legal proceedings which would have a material adverse
effect on the financial position or operations of the group.
Proceedings have been initiated in Italy against 21
defendants, including a former BT employee, in
connection with the Italian UMTS auction. Blu, in which
BT held a minority interest, participated in that auction
process. The hearings are continuing in Rome. If the
proceedings are successful, BT could be held liable, with
others, for any damages. The company has concluded
that it would not be appropriate to make a provision in
respect of any such potential claim.
22 BT Group plc Annual Report and Form 20-F 2005 Operating and financial review