SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
16 December 2004
BT Group plc
(Translation of registrant's name into English)
BT Centre
81 Newgate Street
London
EC1A 7AJ
England
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F..X... Form 40-F.....
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- ________
Enclosures: 1. Local Loop Unbundling charges announcement made on
16 December 2004
December 16, 2004
BT RESPONDS TO OFCOM'S
LLU MARKET REVIEW FINDINGS
BT today welcomed the conclusion and findings of Ofcom's Local Loop Unbundling
(LLU) market review, a process designed to stimulate infrastructure investment
in the UK communications market.
Paul Reynolds, chief executive of BT Wholesale, said: "BT has been working hard
with Ofcom since May on this issue, and these price reductions are absolutely in
line with what we jointly agreed then. I believe they are right for the
industry.
"Price alone isn't the only issue though: BT has worked productively with the
Adjudicator and the industry to develop suitable processes. Together with this
package of price changes we believe the right climate has been created to
develop a market in which those who are willing to innovate and invest can reap
appropriate rewards."
By investing in new automated processes, BT has been able to significantly
reduce LLU costs and these savings have been converted into price reductions
which have been progressively introduced since May 31 this year.
The full range of price changes that will be implemented on the 1st January are
detailed in the Ofcom statement. The headline changes relate to the connection
and rental prices for fully unbundled and shared lines. The price of new fully
unbundled line connection drops from GBP223.33 to GBP168.38 and a conversion of
an existing line from GBP88 to GBP34.86. The shared line product has reduced
connection price from GBP37 to GBP34.86 and the rental from GBP27.12 to
GBP15.60.
The table below summarises these changes to existing pricing from today's
determination, with the proposed prices from the August consultation included as
reference.
Existing Proposed price - Today's determined
Price August consultation price
Shared LLU
MPF Conn GBP37.00 GBP37.03 GBP34.86
Shared LLU
MPF Annual GBP27.12 GBP12.64 GBP15.60
Rental
Full LLU MPF
Transfer GBP88.00 GBP50.70 GBP34.86
Full LLU MPF
New Connection GBP223.33 GBP192.64 GBP168.38
Full LLU MPF
Annual Rental GBP105.09 TBA TBA
When compared to the May 2004 prices, the changes represent overall reductions
of 70% for line sharing (as promised in May 2004), 29% for a new fully unbundled
line and 33% for a fully unbundled transfer. (Note: All prices are ex vat, and
percentage reductions relate to the cost of connection/transfer plus one year's
rental).
About BT
BT Group plc is the holding company for an integrated group of communications
businesses and is listed on stock exchanges in London and New York. British
Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and
encompasses virtually all businesses and assets of the BT Group.
BT is one of the world's leading providers of communications solutions serving
customers in Europe, the Americas and Asia Pacific. Its principal activities
include IT and networking services, local, national and international
telecommunications services, and higher-value broadband and internet products
and services.
BT consists principally of three lines of business:
- BT Retail, providing fixed and mobile communications services and
solutions and IT and networking services to more than 20 million business
and residential customers in the UK. It is also a leading UK internet
services provider.
- BT Wholesale, providing network services and solutions within the UK to
more than 600 fixed and mobile operators and service providers including the
provision of broadband, private circuits.
- BT Global Services, providing IT and networking services internationally
to meet the needs of multi-site organisations with European operations. BT
Global Services operates in more than 130 countries and also offers
international carrier services.
In the year ended March 31, 2004, BT Group's turnover was GBP18,519 million with
profit before goodwill amortisation, exceptional items and taxation of GBP2,013
million.
BT Group plc is listed on stock exchanges in London and New York. British
Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and
encompasses virtually all businesses and assets of the BT Group.
For more information, visit www.bt.com/aboutbt
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
BT Group PLC
(Registrant)
By: /s/ Patricia Day
--------------------
Patricia Day, Assistant Secretary. Head of Shareholder Services
Date: 16 December 2004