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BT response to the consultation "Ofcom's approach to risk in the assessment of the cost of capital - Second consultation in relation to BT's equity beta"

Original consultation was published 23rd June 2005
BT submitted its response on 22nd July 2005

Executive Summary

BT responds to Ofcom's second consultation on a number of issues relating to the calculation of the cost of capital for regulatory purposes.  This consultation focuses in particular on BT's overall equity beta (a measure of the relative riskiness of BT shares compared with the market as a whole and a key input to the calculation of BT's cost of capital), and on whether it would be justifiable to set a lower cost of capital for BT's copper access business.  BT's submission puts the case for equity beta values higher than those suggested by Ofcom, and consequently for higher cost of capital values than suggested by Ofcom, for both BT as a whole, and for the copper access business.
 
Download BT's main response as a PDF document
Download the Annexes to the response also as a PDF document  

Comments should be addressed to Michael Doodson at michael.doodson@bt.com