Original URL: http://www.theregister.co.uk/2005/09/20/telecoms_carriers/

Competition to drive down telecoms costs

It's tough out there

By Tim Richardson

Posted in Broadband, 20th September 2005 11:14 GMT

The cost of telecoms services will continue to fall as increased competition bites and new technologies are developed that can deliver more for less.

So says Paul Reynolds, chief exec of BT Wholesale, who was speaking today at the Carriers World conference in London.

He told delegates that the economic rules that used to govern the telecoms industry are changing - and not just in the UK but around the world as operators witness "continual margin erosion and revenue reductions".

And while markets have become increasingly competitive he believes regulators are unlikely to ease up on incumbents any time soon.

"The telecoms market is a tough place to be and it takes a lot of hard work, a lot of additional sales and continual cost-savings - just to stand still," he said.

"And I don't believe that the price reductions that end users expect and demand, and that regulators often mandate, are about to be relaxed anytime soon.

"Communications in the UK is an ultra competitive market and that level of competition will continue to drive continual downward pressure on prices," he said. ®