British Telecommunications F-3ASR Automatic shelf registration (foreign)

Exhibit 12

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

IFRS

	Six Months
	ended			Year ended March 31,
	September 30,
	2007			2007			2006			2005
	(in £ millions)
Earnings:
Income before taxes		1,590			3,471			3,035			3,329
Add: dividends received from associates and joint ventures		1			6			1			2
Less: minority interest		(1	)		(2	)		(1	)		1
Less: (Income)/loss from associates and joint ventures		6			(15	)		(16	)		39
Add: fixed charges		475			876			1,068			1,197
Earnings		2,071			4,336			4,087			4,568
Fixed charges:
Interest payable		1,424			2,618			2,746			2,777
Less: interest on pension liabilities		(1,014	)		(1,872	)		(1,816	)		(1,720	)
Add: one third of rental expense		65			130			138			140
Fixed charges		475			876			1,068			1,197
Ratio of earnings to fixed charges		4.4			5.0			3.8			3.8

U.K. GAAP

	Year ended March 31,
	2004		2003
	(in £ millions)
Earnings:
Income before taxes		1,957		3,157
Add: dividends received from associates and joint ventures		3		6
Less: minority interest		8		(12	)
Less: (Income)/loss from associates and joint ventures		34		(329	)
Add: fixed charges		1,354		1,754
Earnings		3,356		4,576

1

	Year ended March 31,
	2004		2003
	(in £ millions)
Fixed charges:
Interest payable		1,239		1,634
Less: interest on pension liabilities		—		—
Add: one third of rental expense		115		120
Fixed charges		1,354		1,754
Ratio of earnings to fixed charges		2.5		2.6

U.S. GAAP

	Year ended March 31,
	2007			2006			2005			2004			2003
Earnings:
Net income as adjusted for U.S. GAAP		3,483			1,758			1,980			892			4,134
Add: Tax effect of U.S. GAAP adjustments		(92	)		(203	)		(240	)		(222	)		132
Add: Tax on IFRS/U.K. GAAP profit		(72	)		792			817			539			459
U.S. GAAP net income before tax		3,319			2,347			2,557			1,209			4,725
Add: dividends received from associates											3
and joint ventures		6			1			2						6
Less: (Income)/loss from associates and											34
joint ventures		(15	)		(16	)		39						(239	)
Add: fixed charges		1,238			817			952			1,439			2,653
Earnings		4,548			3,149			3,550			2,685			7,145
Fixed charges:
Interest payable (IFRS/U.K. GAAP)		2,618			2,746			2,777			1,239			1,634
Less: interest on pension liabilities		(1,872	)		(1,816	)		(1,720	)		—			—
Add: interest on leased property		258			255			239			234			233
Add: financial instruments		175			(436	)		(415	)		(82	)		731
U.S. GAAP interest expense		1,179			749			881			1,391			2,598
Add: one third of rental expense		59			68			71			48			55
Fixed charges		1,238			817			952			1,439			2,653
Ratio of earnings to fixed charges		3.7			3.9			3.7			1.9			2.7

2