U.K. LEAPFROGS THE U.S. IN DEREGULATION
Recently the world witnessed a rare changing of the guard: Margaret Thatcher, Britain's Prime Minister, resigned as Britain's most well-known PM since Sir Winston Churchill.
But regardless of the circumstances surrounding Mrs. Thatcher's
departure, one thing is certain: the telecommunications industry in Europe is indebted to Mrs. Thatcher and her advocacy of deregulation and competition in telecommunications.Perhaps Mrs. Thatcher's most important legacy appeared back in early November, 1990, around the time she left 10 Downing Street. The British Department of Trade and Industry issued a white paper called "Competition and Choice: Telecommunications Policy for the 1990s". It is currently being reviewed by many of the key players in Britain's telecommunications industry.
And just as significant is the impact of this document on the U.S. telecom industry.
This month's column briefly examines the key points of this very significant proposal, and its impact on both the U.S. and U.K.
The British analysis will be offered by Peter Gentle, Managing Director of PCG Services, a telecom consultancy based in Ipswich, a suburb of London.
Peter and I are partners on numerous telecom projects, in the spirit of global cooperation (and capitalism).
Total Competition
The new proposal is revolutionary because it recommends full competition in U.K. telecomm markets, including local, long distance and international services.
Also proposed were legalization of international carrier service reselling and provision of private two-way satellite networks.
Further proposals include the establishment of equal access provisions for all long distance carriers, and permission for cable television companies to offer telephone services.
Although the proposal is currently being reviewed by users and other interested parties, it has far-reaching effects on the telecom industries in the U.K. and U.S.
U.K. View
From the U.K. perspective, developments leading to the proposal are noteworthy.
According to Gentle, "Much has been achieved in the U.K. over the last seven years in competition. And we all naturally think of Mercury Communications, Ltd. (MCL), the competitor to British Telecom (BT)," he said.