§ "With permission, Mr. Speaker, I wish to make a Statement about liberalisation of telecommunications in the United Kingdom.
§ "On 21st July last year, I outlined to the House new competitive arrangements covering apparatus attached to the telecommunications network. Independent standard-making and certification bodies are now at work on rules which will replace British Telecommunications' monopoly over approvals of apparatus. Both BT and the private sector are making arrangements to supply apparatus in competition.
§ "Today I am publishing an economic survey by Professor Beesley which reaches radical conclusions about network services. Copies have been placed in the Libraries of both Houses. Professor Beesley recommends full freedom for private sector suppliers to use the national network to provide telecommunications services to third parties. He envisages BT setting an open and uniform price for all users of its network irrespective of whether the users re-sell any of the capacity they lease. Professor Beesley recommends that private companies should be able to lease circuits—parts of the network—from BT and sell to the public telecommunications services carried on those circuits.
§ "Professor Beesley points out that data and voice communication technologies are rapidly converging, making the existing BT monopoly arbitrary and constricting. He argues that, if private firms were free to use the network, this would bring about innovation and substantial consumer benefits. BT would lose some revenue to its competitors but much of this should be offset by increases in traffic as the private sector provided more services using the BT network. BT would be free to compete subject to safeguards of fair competition.
§ "If Professor Beesley's recommendation were adopted, I would expect BT to be spurred to provide an even better service. New profitable enterprises and new jobs would be generated as both BT and new entrants stretched themselves to capture new, and in many cases as yet unknown, markets.
§ "Professor Beelsey's report marks a clean break from previous approaches. Implementation of his recommendation would transform the United Kingdom market for telecommunications.
§ "The Government are attracted by the free market, please-the-customer, arrangements recommended by Professor Beesley. The implications are, however, far reaching and I am inviting views over the next two months before coming to detailed decisions in July. I hope BT will participate in working out the implications and details of what is recommended.
§ "Although outside his terms of reference, Professor Beesley has also considered the implications of possible liberalisation of use of BT's international circuits and of possible competition for the main BT network within the United Kingdom. The free use of international circuits raises complexities and I am inviting BT to comment. I indicated in my statement of 21st July that I intended to explore the scope for allowing the provision of additional transmission services. A number of organisations have been investigating the market possibilities and I will make a further statement on this subject as soon as possible.
§ "In discussing the implications of network liberalisation, Professor Beesley stresses the need for removal of constraints on BT's capital investment. Mr. Speaker, the Government recognise the importance of a modern telecommunications infrastructure 1024 to the development of the whole economy and, within the inevitable constraints imposed by the need to control public expenditure and the PSBR, I am discussing with BT the possibility of increasing the amount of external finance available to safeguard BT's vital investment programme.
§ "The opportunities for both BT and others over the whole field of telecommunications equipment and services are immense. The quicker BT and its competitors respond by expanding their range of products, systems and services, the better".