Research Paper aus dem Jahr 2004 im Fachbereich Wirtschaft - Bank, Börse, Versicherung, einseitig bedruckt, Note: A-, Veranstaltung: Finance II, 22 Eintragungen im Literaturverzeichnis, Sprache: Englisch, Anmerkungen: The British Telecom industry is amongst the most competitive and dynamic in the world. In the past few years the competition has heated up with the entry of new mobile phone operators that have not only challenged the status quo but set new standards for services and value addition to the customer. The advent of new technologies such as 3G has increased the pressure on these companies. , Abstract: The British Telecom industry is amongst the most competitive and dynamic in the world. In the past few years the competition has heated up with the entry of new mobile phone operators that have not only challenged the status quo but set new standards for services and value addition to the customer. The advent of new technologies such as 3G has increased the pressure on these companies to constantly upgrade and update their services. Licenses to operate some services have been auctioned by the British government and have been purchased at extravagant prices. These costs incurred as a result of such auctions have burdened their balance sheets inviting criticisms and doubts that some of them will ever recover the high costs. The British government has also proved in the past that it is willing through its telecom regulatory authority to interfere and force changes such as price cuts. The three companies that are analyzed in this report are amongst the oldest and most known of the telecom not only in Europe but throughout the world. The report will first look into the financial system that these companies operate in, the agency conflicts and the shareholder structure within these companies. The second part of the report will tackle the financial statements using investment appraisal techniques. The extent of each firm's leverage ratio will be scrutinized in the analysis of their capital structures as well as their respective dividend policies. Finally the report will value each of the firms using the above data to provide information to current shareholders as well as prospective investors.