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Dept of Trade and Industry

Answer

Sir Michael Marshall: To ask the President of the Board of Trade what was the outcome of the World Trade Organisation talks on telecommunications; and if he will make a statement. [17104] Mr. Lang: I very much welcome this major success, both for the World Trade Organisation as a promoter of free trade worldwide, and for the United Kingdom, particularly for telecommunications operators, manufacturers and users. The United Kingdom was an active participant in the talks, chairing them throughout the nearly three years they took to complete. My hon. Friend the Minister for Science and Technology attended earlier EU Telecoms Ministers Council Meetings and the final stages of the discussions last week. This agreement, which covers 69 countries and over 91 per cent. of the £400 billion world market for telecommunications will create an enormous boost for operators in the United Kingdom, the most open and competitive market for telecommunications in the world, by offering them access to a large number of markets worldwide, and reinforcing the United Kingdom's position as a global telecommunications hub. It will also give added impetus to the spread of liberalisation, which the United Kingdom has pioneered since the early 1980s, within a guaranteed framework of multilateral, enforceable rules. The expected boost to investment, as more countries open their markets to competition, means new orders for equipment and, equally important, software and systems management from which our manufacturers are well placed to benefit. Some estimates point to an additional £20 billion increase in UK telecoms revenues by 2010. To British consumers, it will mean cheaper telephone charges, as competition in other markets has the same effect as it has had here in bringing charges closer to cost, and British operators pass these on to consumers here. I expect this to bring us closer to the day when ringing New York will cost little more than ringing another town in Britain. This also holds major benefits for the British economy as a whole. World-wide, industry and consumers spend more on telecommunications than on oil products. Low telecommunications charges have already made the United Kingdom an attractive location for people to do business and invest--even lower charges will reinforce this.

Secondary information

Type

Written question

Reference

17104; 290 c601-2W

Session

1996-97

Subjects

Telecommunications Utilities Trade agreements World Trade Organization