British Telecommunications Plc’s better than expected first quarter figures still failed to prevent its shares shedding fivepence ha’penny to 402.5 pence. The fall was due in part to a slow-down in the UK economy which was depressing its domestic call volumes, British Telecom said. Despite the message from the irritating UK advertising campaign that it’s good to talk, Bob Hoskins must have failed to get the message across. UK callers did not think it was that good, volume growth was down to 6% on an average basis in the 12 months to June 30. Finance director Robert Brace told Reuters that call growth was down for the first time since 1992, when it was around zero. A slackening growth rate in the UK economy combined with increased competition from those pesky cable television operators were given as reasons for the decline. Revenue from inland telephone calls in the first three months to June 30 fell to ú1,200m from ú1,230m the year before and the company said that it is now looking at ways to raise inland call growth. The cellular market fared better, with mobile communications revenues up 32.9% to ú190m. British Telecom’s Concert services joint venture with MCI Communications Corp brought in ú1,000m in the first year of operation but Brace said that Concert was not responsible for the majority of the growth. Concert is a one-stop shop offering telecommunications services to multinationals. People still think our prices are two or three times higher than they actually are. If we can get the message across (about recent price cuts) it will be good for business and good for customers, he said.
