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Technology Stocks : Newbridge Networks
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To: Ian@SI who wrote (4187)4/22/1998 9:48:00 PM
From: pat mudge  Read Replies (1) of 18016
 
BT likely to have ban lifted sooner than most expected:

ft.com

What's your take? Seems positive, but perhaps b/c some were hoping for 2000, it isn't.

Later --

Pat

Text, in case you can't access:

<<<
THURSDAY APRIL 23 1998ÿÿTelecomsÿ
BT: Ban likely to be lifted a year early
By Cathy Newman

The government is today expected to set out plans to lift the ban on British Telecommunications becoming a broadcaster, allowing it to provide services nationwide from 2001 -a year earlier than recommended before the election.

Lifting the ban would allow BT and other network operators to start moving into areas not covered by cable franchises from this year.

In a policy document before the election, Labour recommended that the ban, imposed by the Conservative government in 1991 to allow the cable industry to establish itself, should be lifted nationwide from 2002.

By freeing BT from nationwide broadcasting restrictions a year earlier, the government will displease many cable companies that are still sustaining heavy losses. However, the cable industry will be relieved that the government has ruled out ending the ban as early as 2000, as some observers had feared.

In a paper today, described as "green with white edges", the government will boost BT's competitive position by removing some regulatory uncertainties.

But the telecoms group has already ruled out entering mass-market television. It said it would not make programmes to compete with British Sky Broadcasting, the satellite operator, or the BBC.

BT instead intends to increase its multimedia services. The company said in February that it saw a growing market for broadcast services over the internet, such as video on demand and channels using high- speed modem technology.

BT has argued that the ban is an anomaly as the company already offers internet services. Broadcasting over the internet is widespread.

Tony Blair, the prime minister, committed Labour to lifting the broadcasting ban in his party conference address in 1995. He said BT had agreed to wire up schools to the internet if the restrictions were removed. At the time the Conservatives accused Labour of cosying up to BT. The move also angered the cable industry, which has received investment of œ7bn over the past 10 years but has struggled to make a profit.

Since Labour made its deal with BT, the company has ruled out spending œ15bn on building a national information superhighway. It said last May that it was no longer considering extending its fibre network to homes, claiming the issue had been overtaken by new technology.>>>
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