Under the terms of the demerger, BT Group and mmO2 have, through arm's length negotiations, entered into a number of agreements to define the continuing relationships between the groups. These agreements include trading agreements (for IT, telecommunications, network, field operation and maintenance services, PMP (point to multi-point) frequency usage and technical services) and shared services agreements (for administrative services, site sharing and occupancy licences).
Since the demerger, BT Group has charged £235 million and has incurred charges of £245 million from mmO2 in respect of services described above. As at 31 March 2002, BT Group owed £89 million to and was owed £126 million by mmO2.
In the year ended 31 March 2002, the group's turnover with Concert amounted to £843 million (2001 - £804 million) and it purchased £574 million (2001 - £612 million) in services and products from Concert. In addition, the group provided certain support services to Concert, including the secondment of staff, which totalled £135 million (2001 - £168 million) and is shown as other operating income. Interest for the year of £24 million (2001 - £41 million) was receivable on long-term debt due from Concert at a rate of 5.6%. The amount of debt outstanding at 31 March 2002 was £nil (2001 - £651 million). The maximum debt outstanding during the year was £651 million (2001 - £674 million). As at the latest practicable date, 30 April 2002, the balance of the loan was £nil.
In the year ended 31 March 2002, the group's turnover with its other associates and joint ventures amounted to £15 million (2001 - £21 million, 2000 - £64 million) and the group purchased £99 million (2001 - £63 million, 2000 - £nil) in services and products from these undertakings. Interest for the year of £1 million (2001 - £81 million) was receivable on debt due from these undertakings. Interest was charged on debt at a rate of 5.2%. The amount of debt outstanding with these joint ventures, at 31 March 2002, was £22 million (2001 - £73 million). The maximum debt outstanding during the year was £73 million (2001 - £3,332 million). As at the latest practicable date, 30 April 2002, the amount of debt outstanding was £22 million.