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The UK: A Case Study

In: Restructuring Telecommunications

Author

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  • Peter Curwen

Abstract

Privatization and liberalization are further advanced in the UK than elsewhere in the EU (removal of the last remaining vestige of monopoly power, the restriction on companies other than BT and Mercury owning and operating their own circuits for international calls, took place in 1996), and lessons can accordingly be learned from experience there. It is important to note from the outset, however, that whereas AT&T has suffered divestiture and subsequently lost a considerable part of its remaining long-distance market, British Telecommunications (BT) has so far lost less than 20 per cent of the overall market for telecoms services, and far less specifically in voice telephony where, in March 1996, it was estimated by OFTEL to control 94 per cent of local calls, 83 per cent of national calls and 70 per cent of international calls. BT is predicted to relinquish only a further 3–4 per cent per annum for the foreseeable future, with an OFTEL estimate of an overall market share of 65 per cent in 2001, although that disguises the extent of competitive pressures in particular markets.

Suggested Citation

  • Peter Curwen, 1997. "The UK: A Case Study," Palgrave Macmillan Books, in: Restructuring Telecommunications, chapter 11, pages 129-160, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-37545-1_11
    DOI: 10.1057/9780230375451_11
    as

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