Racal Data Networks Ltd part of the Racal Electronics Plc group, has pulled out of the Hermes project to upgrade the pan-European switching network operated by Europe’s railway companies; Racal was heading the Hermes consortium, but says it now wishes to concentrate on its network services for the government which it says are growing – Racal runs the Government Data Network; the ultimate aim of the Hermes project was to build a fibre optic network to provide voice and data services in competition with European telecommunications operators, but the project faces enormous regulatory obstacles, with the UK the only European country to allow competition in basic telephone services; other companies in the consortium are British Rail, Nynex Corp, US Sprint Communications Co, Daimler-Benz AG, Groupe Suez SA: the consortium says that it plans to look for a replacement for Racal.
