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HOW WILL BT'S COMPETITORS REACT TO THIS PROPOSAL?

<strong>TOM GIDLEY-KITCHIN </strong>CHARLES STANLEY<br />Rivals to BT have been wholly against this right from the start. Why should people like Carphone Warehouse be penalised because BT cannot manage its pension? I think a compromise will be the end result of all this and I don&rsquo;t think it will be massively negative for BT&rsquo;s competitors.<br /><strong><br />ROBIN BIENENSTOCK </strong>BERNSTEIN<br />A four per cent rise in regulated charges could equate to an impact for BT of about one per cent of core earnings. We believe there will eventually be some recognition of deficit payments included in BT's regulated charges, with precedent set by Ofwat who include 50 per cent of deficit repayments.<br /><br /><strong>RICHARD HUNTER </strong> HARGREAVES LANSDOWN<br />In this environment, BT&rsquo;s rivals will not take kindly to having to pass on extra costs to customers, so that will put pressure on them to make cost savings elsewhere. Bearing in mind their wafer thin margins, it sounds like it could have a material impact on them, so you would expect them to challenge it.