BT will be perceived as having advantages which may reduce the level of effective future competition

3.31  The contract provides for a further competition towards the end of the contract period and arrangements for this competition have to be put in hand from the eighth year onwards. At this stage, many of the procedures and associated costs for the further competition have yet to be worked out.

3.32  The contract requires BT to make certain information available to enable a full and open competition towards the end of the ten year period. This information does not include data on BT's methods and mechanisms for delivering the services, which is commercially sensitive. Despite the requirements to make information available for a further competition, BT's ten years' experience of operating the Department's fixed telecommunications will mean that they will be the only supplier with full knowledge of the Department's service requirements. This could place them at an advantage in the future competition, and other telecommunications suppliers have told us that they are unlikely to bid against BT as they would expect BT to retain the contract.