Abolition of the last major restriction on competition in telecommunications in the UK market is in sight following announcement by the Department of Trade & Industry yesterday that it was minded to end the duopoly currently enjoyed by British Telecommunications Plc and the Mercury Communications arm of Cable & Wireless Plc on international switched telephony. The government sees high quality and competitively priced telecommunications services as a key factor for international companies when deciding where to locate – but UK subscribers already have the cheapest international rates in Europe. Shares in the duopolists dipped on the announcement, with Telecom off ninepence at 367.5 pence, Cable & Wireless off fourpence at 450 pence; British Telecom said it had been expecting the announcement and wanted other European Union countries to follow suit. The government launched a consultation exercise inviting companies, consumers and investors to give their views. The deadline for any such comments is April 15.
