Iain Vallance, chairman of British Telecommunications Plc has sent a memorandum to the Parliamentary Select Committee for Trade & Industry bemoaning his company’s likely fate under the UK’s current competition and regulatory policies. Vallance is also concerned that such policies will have a long term detrimental effect on the telecommunications industry. He cites the example […]
Iain Vallance, chairman of British Telecommunications Plc has sent a memorandum to the Parliamentary Select Committee for Trade & Industry bemoaning his company’s likely fate under the UK’s current competition and regulatory policies. Vallance is also concerned that such policies will have a long term detrimental effect on the telecommunications industry. He cites the example of mobile communications as an area where regulatory constraints are jeopardising the development of the market as well as disadvantaging British Telecom. Furthermore, Vallence points out that increased competition has led to stricter regulation as the tough Retail Price Index minus 4.5% formula for maximum permitted price increases replaces its RPI minus 3% predecessor. He feels that now the initial market entry phase of Telecom’s competitors is completed, there should be a relaxation in policy.
