Telecoms costs pose threat to business

Two major organisations have told the Telecommunications Managers Association conference that high costs may soon begin to drive business out of Europe. According to Unilever's IT director, Nick White, leased line costs across Europe are unacceptably high, especially in comparison to the US Ð one of the first telecoms markets to be de-regulated.

American Express has actually moved this part of its operations to the States. "We have an annual global budget of over $11bn for just voice and data," says AmEx's Vivienne Peters. "Consequently, we are highly sensitive to the regulatory framework in Europe. We have had to go west to reduce costs."

What is needed, the TMA audience heard, is greater interoperability, as well as more competitive pricing.

Almost as if he had a view on future advertising copy lines, White added: "We want one-world networks. We want genuine choice and competition."

The cost of leased lines in the UK is currently being investigated by industry regulator Oftel.

Elliott Chase