Mercury Communications Ltd plans to boost investment significantly and focus on local networks so it can compete more effectively with British Telecommunications Plc, the Financial Times said. Mercury’s main shareholder, Cable & Wireless Plc has approved a plan to raise capital expenditure to 400m British pounds to 450m pounds from 300m pounds to 350m pounds and Mercury would devote the extra cash to building local networks. Mercury, which had focused more on long-distance telecommunications in the UK, is also planning a drive into continental Europe where telephone markets are slowly being opened up to competition; margins have shrunk in long-distance telecommunications.
