Oftel has today published proposals to enhance the way in which BT prepares
and supplies its annual regulatory financial statements.
These proposals will ensure Oftel has access to more detailed, high quality,
transparent financial information on which to base its regulatory decisions.
The draft direction proposes that BT should provide more disaggregated financial
information, for example, by product and service groups, network components
and by types of customer, and provide more detail on how it prepares this information.
BT's regulatory accounts are used by Oftel to help form regulatory decisions
across many areas of its work, such as price controls and cost-orientation.
These proposals do not relate to BT Group's statutory accounts or in any way
represent any criticism of BT Group's statutory accounts.
David Edmonds, Director General of Telecommunications said today:
"BT's regulatory accounts consist of complex, technical financial information
that is essential to ensuring that Oftel can make fully informed decisions and
meet its strategy of proportionate regulation.
"These proposals will improve the quality of information we receive from
BT, taking account of market developments and technological advances in the
industry.
"As well as requiring more detailed accounts I am also proposing greater
transparency of the processes used to prepare the information.
"This will lead to more effective use of Oftel's time and resources when
dealing with investigations and complaints, and carrying out market reviews."
Oftel welcomes comments on the proposals set out in the draft direction. The
closing date for comments is 18 September 2002.
