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December 3, 1987

RACAL-MILGO SETS UP DUTCH SUBSIDIARY TO TAKE ADVANTAGE OF DEREGULATION

By CBR Staff Writer

Racal-Milgo Ltd has set up a company in Holland to take advantage of opportunities it sees arising from deregulation of European public telecommunications authorities, particularly in Integrated Services Digital Network, ISDN. The company is currently negotiating with the Dutch PTT to supply it with ISDN-compatible network termination equipment. It supplies British Telecom with specially-developed Network Terminating Equipment type 4 systems for its IDA version of ISDN, which is not due to be compatible with CCITT ISDN standards until spring 1988. Competition in the sale of modems is the only area of deregulation currently but a PTT spokesman has confirmed that competition in sale of telephones and PABX equipment will be possible from 1989. The PTT is preparing for deregulation in that year and has already laid plans to incorporate as a company, although these will all initially be held by the Dutch government, which says there are no plans as yet, to sell them to the public. The country’s postal service has already been hived off as a limited company, with all shares in the hands of the government. Telephone services still operate as a nationalised industry. Racal-Milgo BV, with around 50 employees, adds to Racal’s German company and incorporates its existing Belgian operation. The new company will also address the Luxembourg market. Racal used to say that the only place it could not sell modems was the UK and that it did much more business in continental Europe.

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