1.1 Relevant, reliable and timely regulatory financial information informs many of our decisions. We require this information in order to monitor and enforce various obligations that are placed on dominant providers in markets where they are found to have significant market power ("SMP").
1.2 In this statement we set out various changes to enhance the presentation and improve the quality of BT's regulatory financial statements ("RFS") reflecting developments over the last 12 months in the regulatory, technological and competitive environment, our ongoing analysis and use of the RFS, comments from users of the RFS and discussions with BT.
1.3 We note that at the same time we are conducting a fundamental review of the regulatory reporting framework to ensure that it is fit for purpose, provides good quality data and provides an effective basis for monitoring compliance. We published a Regulatory Financial Reporting Review consultation in September 2012 and are planning further publications on regulatory reporting and cost orientation in 2013. In this document we are proposing short term improvements for the 2012/13 RFS.
1.4 We set out our proposals in our consultation published on 23rd January 2012 (the "January Consultation").
1.5 The main change to BT's 2012/13 RFS reflected Ofcom's decision in the March 2012 Charge control review for LLU and WLR services ("LLU/WLR charge control review") . A decision was made in this review to remove the cost orientation obligation for certain services in the LLU/WLR market (the "relevant services") .
1.6 As a consequence of the decision we proposed to remove the obligation for BT to publish Distributed Long Run Incremental Cost (DLRIC) and Distributed Stand Alone Cost (DSAC) data for the relevant services. We proposed to retain the obligation for BT to continue to collect the information on DSAC and DLRIC costs for these services and provide it to Ofcom on demand. We also proposed to retain the obligation for BT to publish Fully Allocated Cost (FAC) data for these services.
1.7 Other changes on which we consulted were mainly concerned with improving the presentation and content of the statements including more granular reporting for growing services and amalgamation of reporting for services that have been withdrawn or where the revenue is very small.
1.8 The regulatory financial reporting regime is also applicable to KCOM. This year, however, we have identified no reporting changes relating to KCOM which require consultation.