Goodwilla £m		Telecommuni- cation licencesb £m		Total £m
Cost
At 1 April 2001		12,110		9,746		21,856
Additions		41		-		41
Acquisitions of subsidiary undertakings		909		-		909
Adjustments		3		(23	)	(20	)
Disposals		(511	)	(12	)	(523	)
Demerged with mmO2		(9,917	)	(9,668	)	(19,585	)
Currency movements		(47	)	(22	)	(69	)
Total cost at 31 March 2002		2,588		21		2,609
Amortisation
At 1 April 2001		3,462		14		3,476
Charge for the year - amortisation		352		14		366
Charge for the year - impairmentc		1,955		-		1,955
Demerged with mmO2		(3,373	)	(21	)	(3,394	)
Disposals		(45	)	(1	)	(46	)
Total amortisation at 31 March 2002		2,351		6		2,357
Net book value at 31 March 2002		237		15		252
Net book value at 31 March 2001		8,648		9,732		18,380

^aThe goodwill arising on acquisitions of subsidiary undertakings in the year ended 31 March 2002 mainly arose from the acquisition of Esat Digifone (see note 18).

^bThe telecommunication licences mainly comprised third generation mobile (3G) licences in the UK and Germany. In April 2000, the group won a 3G mobile licence in the UK government's auction. The licence, which cost £4,030 million, would have been amortised over its remaining 20 year term from the date of launch of services using the licensed radio spectrum. In August 2000, Viag Interkom won a 3G mobile licence in the German government's auction. This licence, which cost £5,164 million, would have been similarly amortised over its remaining 20 year term from the date of launch of service. These two licenses were transferred out of the group with the mmO2 demerger.

^cIn accordance with FRS 11 "Impairment of fixed assets and goodwill", the carrying values of BT Ignite's subsidiary undertakings in Europe at 31 March 2002 have been compared to their recoverable amounts, represented by their value in use to the group. The value in use has been derived from discounted cash flow projections which cover the period to 31 March 2015. The projections cover this extended period as the directors consider this extended period fairly reflects the development of the technology and assets and their long term values. After 31 March 2015 the projections use a long-term growth rate compatible with projections for the countries concerned. The average discount rate used to arrive at this calculation was 15.1% on a pre-tax basis.

The review has resulted in an exceptional charge to operating costs of £2,202 million of which £1,939 million has been allocated to the goodwill and £263 million allocated to the fixed assets (see note 21). The remaining goodwill is being amortised over 17 years from 31 March 2002.

Other impairment charges of £16 million were made in the year ended 31 March 2002.