Silviase/jgov_v1.4_full_ann huggingface dataset:
TABLE 1.3 NEW PUBLIC FIXED LINK LICENSEES IN 1995

Ionica L3 Ltd	To provide a national telephone service based on fixed wireless communications
City of London Telecommunications Ltd	To provide a telecommunications network in the London area
Energis Communications Ltd	To provide a high capacity fixed link digital network
Scottish Hydro Electric plc	To provide an optical fibre and radio trunk network, based on existing links in the North of Scotland
MFS Communications Ltd	To provide switched services initially in the Greater London Area
ScottishPower Telecommunications Ltd	To provide an optical fibre trunk network in central and southern Scotland
Torch Communications Ltd	To provide an optical fibre and radio network for digital telecommunications initially in the Yorkshire and Humberside area
Vodafone Ltd	To provide fixed link in its own network or to others, and directly connections to overseas mobile and fixed networks
NORWEB plc	To develop a fibre optic and digital microwave network initially in the north west for the provision of private circuits but with the possible extension to switch voice telephony
Videotron City and Westminster Ltd	To provide, with code powers, licence with code powers to provide a wide range of telecommunications services throughout Westminster and the City of London
Telecom Securicor Cellular Radio Ltd	To provide fixed services and fixed links within its network
Sprint Holding (UK) Ltd	To provide local, trunk and international retail services and private circuits
Telstra (UK) Ltd	To provide a wide range of services within, to and from the UK
Worldcom International Inc	To provide national and international resale services, including a range of advanced network services such as Centrex, virtual private networking and intelligent network applications
Racal Network Services Ltd	To provide with code-powers, a wide range of value added voice and data services
AT&T Communications (UK) Ltd	To provide with code-powers, domestic switched voice and data services, private line services and international retail services
### TABLE 1.4 COMPARISON OF FIVE SCHEMES FOR THE REGULATION OF BRITISH TELECOM

No explicit constraints	Rate of Return control with sharing of excess profits	Output related profit rate	Profit Ceiling	Price Cap
Protection against monopoly	5	3	2	4	1
Efficiency and innovation	1=	4=	4=	3	1=
Burden of regulation	1	5	4	3	2
Promotion of competition	1	5	4	2=	2=
Proceeds and prospects	1=	4	5	3	1=

(1 represents best option; 5 represents worst option)

Source: Littlechild, 1983
TABLE 1.5 CHANGES IN BT'S PRICE CAP AND BASKET OF CONTROLLED SERVICES

The value of the price cap and date applied	Elements in the basket of services detailed in licence and subject to price control	Other main constraints on services	Services where no price constraint applies	Percentage of BT's group turnover under price control
RPI - 3 (1984 - 1989)	Residential and business exchange line rentals	Residential exchange line rental (maximum RPI+2)	Telephone rental	48%
Local and national direct dialled call charges	International calls
Operator services including directory enquiries
Calls from public telephone boxes
Connection charges
RPI - 4½ (1989 - 1991)	Residential and business exchange line rentals	Residential and business exchange line rentals (RPI+2)	Telephone rental	54%
Direct dialled local and national call charges	Connection charges for new lines and charges for installation (RPI+2)	International calls
Operator assisted calls and directory enquiries service	Private circuits (RPI+O)	Calls from public telephone boxes
Low user scheme up to 120 units per quarter (rentals limited to up to 60% of normal rental)	Priority fault repair and new service
Introduction of representative residential bill (informal control)
RPI - 6 $ \frac{1}{4} $ (1991 - 1993)	Exchange line rentalsLocal and national call charges	Residential and single line rental (RPI+2); multi-line rental (RPI+5)	Telephone rental (although regulatory action led to a reduction in 1992-93)	69%
Operator assisted calls	Hard wired phone rental	Public telephone boxes
International calls	Connection charges (RPI+2)	Priority fault repair
Quantity discounts and alternative tariffs to high volume users	Private circuit basket (RPI)
Median residential bill (RPI)
Low user scheme (up to 120 units per quarter)
RPI - 7 $ \frac{1}{2} $ (1993 - 1997)	Exchange line rentalsLocal and national call charges	All exchange line rentals (to RPI+2)	Calls from public telephone boxes	71%
Operator assisted calls	Hard wired telephone rentals (RPI)	Priority fault repair
International calls	Maximum connection charge £99 plus VAT
Connection charges	All individual prices in basket limited to RPI including connection charges
Extension of low user scheme to 240 units
Private circuit basket (RPI)
TABLE 1.6

## BT'S CALL CONVEYANCE CHARGES FOR MERCURY, 1985 DETERMINATION

Segment	Peak	Standard	Cheap

## SINGLE SEGMENT CONVEYANCE CHARGE

Local 3L	2.6	2.3	1.0
Local 3J	2.3	2.0	1.0
Short National	6.0	4.4	2.2
Long National	6.5	5.0	2.4

## TWO SEGMENT CONVEYANCE CHARGE

Local 3L	2.6	2.3	1.0
Local 4J	2.3	2.0	1.0
Short National	4.6	3.1	1.1
Long National	4.8	3.5	1.4

## Source: OFTEL (1985)

### TABLE 1.7

## BT'S CALL CONVEYANCE CHARGES FOR MERCURY, 1993 DETERMINATION

Segment	Cheap Rate	Standard Rate	Peak Rate
Local Exchange	0.67 pence	1.16 pence	1.53 pence
Tandem Local	0.81 pence	1.41 pence	1.95 pence
Tandem Short National	0.95 pence	1.65 pence	2.17 pence
Tandem Long National	1.20 pence	2.08 pence	2.73 pence

Source: OFTEL (1993)
TABLE 1.8 ACCESS DEFICIT CONTRIBUTIONS DUE TO BT, 1993 DETERMINATION (PENCE PER MINUTE)

Call Type	Cheap Rate	Standard Rate	Peak Rate
Local	0.27 pence	0.54 pence	0.71 pence
National	0.94 pence	1.48 pence	1.93 pence

International (price per minute)

Charge Band	1	2	3	4	5	6	7	8	9	10	11	12	13
Peak	2.10	3.76	9.26	10.03	11.11	12.51	15.73	15.07	26.99	29.29	26.94	28.28	58.01
Standard	2.10	3.76	9.26	9.24	10.66	12.51	15.73	15.07	26.88	29.29	26.94	28.28	58.01
Cheap	1.71	3.14	7.83	7.94	9.00	8.95	12.62	12.20	23.03	24.83	25.69	27.19	57.08
Incoming	1.96	3.55	8.60	8.76	9.70	11.48	15.13	14.37	25.17	27.22	26.68	28.03	57.77

Source: OFTEL (1993)

TABLE 1.9

ALTERNATIVE INTERCONNECTION PRICING PRINCIPLES (IN PENCE PER CALL MINUTE FOR SINGLE TANDEM)

Incremental Cost	Equal Mark-up	ECPR	Ramsey	Current* Regime
Local call	1.1	2.3	2.1	2.8	1.7
National call	1.1	2.3	4.3	1.6	2.5
International call	1.1	2.3	8.0	1.4	7.7

* Fully allocated cost plus access deficit contribution (see text)

Source: OFTEL (1994b)
TABLE 1.10
REGULATION OF MOBILE COMMUNICATIONS
1985 Cellnet and Vodafone licensed to provide mobile services
1986 Services become available
1989 Four telepoint licences issued
Three personal communications service (PCS) operators announced; subsequently two merge
1990 Telepoint services become available, but the operators subsequently withdraw them
1993 First PCS operator, Mercury One-2-One begins operation
Vodafone offers digital service
1994 Second PCS operator, Orange begins operation
Cellnet offers digital service
DGT issues and subsequently revokes directions prohibiting unfair cross-subsidisation of service providers by network operators
1995 DGT permits PCS operators up to two years to eliminate losses from direct sales organisations
### TABLE 2.1 OPERATORS IN UK TELECOMMUNICATIONS MARKETS: 1995

1. Local

2. Long Distance

BT

Kingston Communications,

Mercury (limited scale)

59 cable franchisees

COLT

MFS

### 3. International

BT

Mercury

Energis

Torch

BT

Mercury

(Plus resellers)
TABLE 2.2 BT'S MARKET SHARE ESTIMATES 1984/85 TO 1991/92

1984/85	1990/91	1991/92
All business lines and calls	100	94	90
All residential lines and calls	100	99+	99
Inland Calls	100	96	94
Local	100	99	98
Long Distance	100	94	92
International Calls	100	89	83
All telephone services in financial district of London	100	70	N/A

Source: NERA estimates
TABLE 2.3 MARKET SHARES IN PERCENTAGES

BT	Mercury	Kingston	Others
CALL REVENUES
1992/93	89.3	10.0	0.5	0.3
1993/94	86.6	11.6	0.5	1.1
of which
Local	1992/93	96.1	3.3	0.3	0.28
1993/94	95.3	3.4	0.3	0.9
National	1992/93	89.1	10.0	0.7	0.2
1993/94	86.0	12.5	0.7	0.8
International	1992/93	77.6	21.8	0.3	0.3
1993/94	73.4	23.9	0.3	2.3
EXCHANGE LINES
1992	98.8	0.5	0.6	0.1
1993	98.2	0.6	0.6	0.5
1994	97.3	0.7	0.6	1.4
of which
Business	1992	97.2	2.2	0.5	0.2
1993	96.4	2.7	0.5	0.3
1994	96.0	3.0	0.5	0.6
Residential	1992	99.2	0.0	0.7	0.1
1993	98.7	0.0	0.6	0.6
1994	97.8	0.0	0.7	1.6

Source: OFTEL (1995a)
Homes Passed	Homes Connected to Cable TV	Penetration %	Total Telephone Exchange Lines
January 1986	66,238	7,523	11.4	----
January 1987	143,066	19,758	13.8	----
January 1988	276,671	50,609	14.7	----
January 1989	426,056	62,728	14.7	----
January 1990	557,193	87,062	15.6	----
January 1991	828,227	148,984	18.0	2,224
January 1992	1,332,478	267,430	20.1	21,225
January 1993	1,937,501	434,458	22.4	109,133
January 1994	2,778,067	610,256	22.0	312,222
January 1995	4,116,212	915,592	22.24	741,146

Source: Cable Communications Association
### TABLE 2.5 BT'S PRICE CHANGE FROM PRIVATISATION TO 1995

Cumulative Price Change %	Deflated by RPI %
CHANGE IN PRICE OF
Exchange line rentals
Residential Exclusive	70.2	6.0
Business Exclusive	71.3	6.7
Wholesale Lines	92.1	19.6
CHANGE IN PRICE OF
Connection Charges
Domestic	-0.1	-37.8
Business	-24.6	-53.1
CHANGE IN EFFECTIVE PRICE OF
Local Calls
Peak	-3.2	-39.7
Standard	18.1	-26.5
Cheap	22.5	-23.7
National A
Peak	-24.4	-52.9
Standard	8.6	-32.4
Cheap	25.6	-21.8
Weekend Cheap	14.4	-28.8
National B1
Peak	-47.7	-67.4
Standard	-31.7	-57.5
Cheap	5.2	-34.5
Weekend Cheap	-38.0	-61.4
National B
Peak	-45.9	-66.3
Standard	-42.3	-64.0
Cheap	-14.4	-46.7
Weekend Cheap	-49.8	-68.8
International Calls	-21.7	-51.2
Directory Enquiry Charges	-42.0	-63.9
Weighted Average	4.4	-35.0
Standard Discounted Unit Fee	-2.6	-39.3
Optional Packages	-2.2	-39.1
Overall Weighted Average	-0.4	-38.0

Source: OFTEL
SUMMARY OF PRICE CHANGES CONTROLLED BY LICENCE CONDITION 24, 1984-1995 (IN REAL TERMS)

Nov84	Nov85	Nov86	Nov87	Nov88	Sept89	Sept90/ Apr91	Sept91	Jan93/ Jul93	Sept93 Jun94	Aug94/ Feb95
%	%	%	%	%	%	%	%	%	%	%
Change in RPI in base period	5.1	7.0	2.5	4.2	4.6	8.3	9.8	5.8	3.9	1.2	2.6
RPI minus X (1)	2.1	4.1	-0.5	1.2	1.6	3.8	5.3	-0.4	-2.4	-6.0	-4.9
Permitted Increase (2)	2.1	4.1	-0.1	1.3	2.8	3.8	5.5	-0.2	-1.0	-6.9	-4.9
CHANGE IN PRICE OF:
Exchange line rentals (3)
Residential Exclusive	2.1	3.0	-0.2	-3.3	-7.5	2.3	2.6	3.7	4.2	0.7	1.3
Business Exclusive (4)	1.8	3.3	0.0	-3.3	-7.5	2.4	2.8	3.6	4.2	0.7	1.3
Wholesale Lines	1.8	3.3	0.0	-3.3	-7.5	2.4	2.8	6.7	7.1	3.9	4.3
Connection charges
Domestic (5)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-2.6	-3.3
Business (5)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-27.1	-3.3
CHANGE IN EFFECTIVE PRICE OF:
Local calls:
Peak (6)	1.8	0.9	15.0	-3.3	-7.5	-7.7	-13.5	-0.6	-1.7	-25.1	-3.3
Standard	1.8	0.9	2.5	-3.3	-7.5	-3.4	-13.5	0.6	-1.7	-2.5	-3.3
Cheap	1.8	0.9	-7.5	-3.3	-7.5	-4.0	1.1	0.5	-1.7	-2.5	-3.3
National ‘a’:
Peak (6)	1.8	0.9	-2.3	-3.3	-7.5	-7.7	-17.8	-4.1	-1.7	-25.8	-3.3
Standard	1.8	12.8	-2.8	-3.3	-7.5	-7.7	-18.0	-4.1	-1.7	-2.7	-3.3
Cheap	18.1	0.9	-1.2	-3.3	-7.5	-4.1	-3.0	0.8	-1.7	-2.7	-3.3
Weekend cheap (7)	18.1	0.9	-1.2	-3.3	-7.5	-4.1	-3.0	0.8	-1.7	-11.6	-3.3
National ‘b1’:
Peak (6)	-15.3	-19.5	-15.9	-3.3	-7.5	-7.7	-18.9	-4.1	-1.7	-25.8	-3.3
Standard	-15.2	-19.3	-15.9	-3.3	-7.5	-7.7	-19.0	-4.1	-1.7	-2.5	-3.3
Cheap	1.8	0.9	-15.9	-3.3	-7.5	-7.7	-1.9	0.8	-1.7	-2.5	-3.3
Weekend cheap (7)	1.8	0.9	-15.9	-3.3	-7.5	-7.7	-1.9	0.8	-1.7	-43.6	-3.3
National ‘b’: (8)
Peak (6)	-19.0	-11.7	-19.9	-3.3	-7.5	-7.7	-19.2	-4.1	-1.7	-26.0	-3.3
Standard	-18.9	-10.4	-20.9	-3.3	-7.5	-7.7	-19.1	-4.1	-1.7	-2.5	-21.9
Cheap	1.8	0.9	-10.1	-3.3	-7.5	-7.7	-2.0	0.8	-1.7	-2.5	-26.9
Weekend cheap (7)	1.8	0.9	-10.1	-3.3	-7.5	-7.7	-2.0	0.8	-1.7	-57.7	-3.3
## NOTES:

International Calls	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-13.9	-6.4	-8.0	-6.9
Directory Enquiry Changes (9)	N/A	N/A	N/A	N/A	N/A	N/A	-4.6	-4.1	-1.7	-2.5	-47.7
Weighted average (10)	-3.0	-1.8	-4.2	-3.3	-7.5	-4.2	-3.7	-2.0	-0.7	-9.4	-6.8
Standard Discounted Unit Fee(11)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-6.1	-2.3	N/A	N/A
Optional Packages (11)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-5.0	-3.0	N/A	N/A
Overall Weighted Average (12)	-3.0	-1.8	-4.2	-3.3	-7.5	-4.2	-3.7	-4.8	-2.6	-9.4	-6.8
NOT IN BASKET (until 1993):
CHANGE IN:
Residential connection charge (13)	-5.0	7.8	7.9	7.2	-7.5	2.4	2.6	3.7	-30.7	-2.5	-3.3
RPI % change on (14)	5.0	5.5	3.9	3.3	7.5	7.7	9.0	4.1	1.7	2.5	3.3
one year earlier

(1) 1984-1988, X=3; 1989-1991, X=4.5; 1991-1993, X=6.25; from 1 August 1993, X=7.5.

(2) After allowing for carryover of unused allowances from previous years.

(3) Including basic telephone Instrument In 1984 only.

(4) November 1987: No increase in standard business rental, but rental for low loss exchange loss lines Increased.

(5) September 1993/June 1994: Includes all business/residential connection charges.

(6) Amalgamated with 'Standard' to become 'Daytime' In March 1994.

(7) This was charged at cheap rate until December 1993.

(8) In 1986 and again in 1989, routes were transformed from 'b' to 'b1'. The weighted averages take account of this. In September 1994, the 'b' rate was eliminated.

(9) Directory enquiry revenue as a percentage of total regulated revenue.

(10) Including services not identified above, in particular shared exchange lines, linklines, midnight lines, low loss lines and low user schemes.

(11) Net revenue as a percentage of total regulated revenue.

(12) September 1989: Includes the effect of a reduction in the number of concessionary days.

(13) Forms part of the regulated revenue of from September 1993.

(14) The price change figures are deflated by the RPI % change over one year on the relevant January 1.

N/A Not Applicable-not included in the basket of controlled services.
TABLE 2.7 MEDIAN BILL (£) PER QUARTER (EXCLUDING VAT)

1988/89	1989/90	1990/91	1991/92	1992/93	1993/94
Connection charges	1.74	1.38	1.38	1.38	1.35	1.31
Exchange line rental	13.95	15.35	17.13	18.46	19.54	20.16
Local calls	10.33	10.57	12.04	13.04	14.56	13.22
National calls	7.18	8.35	8.25	9.42	8.23	10.60
International calls	1.36	2.01	1.66	1.36	1.74	1.56
Total (excluding DQ/IDQ)	34.56	37.66	40.46	43.66	45.42	46.48
DG/IDQ	----	----	1.09	0.36	0.35	0.80
Total (nominal terms)	34.56	37.66	41.55	44.02	47.22	47.66

Source: OFTEL

TABLE 2.8

TOTAL COST OF TELEPHONE SERVICE FROM MERCURY AS A PROPORTION OF BT'S CHARGES FOR DIFFERENT CUSTOMER GROUPS (BT = 100)

Average Residential Customer	High Usage Residential Customer	Six Line Business Customer	Fifty Line Business Customer	100 Line
1987	91	90	92	82	83
1988	92	91	92	82	84
1989	92	91	92	83	84
1990	91	90	92	81	82
1991	88	87	92	83	84
1992	89	92	98	93	93
1993	89	93	97	90	90
1994	92	97	97	90	90

Source: Analysys (1994)
## BT'S FINANCIAL PERFORMANCE (YEAR ENDING MARCH OF STATED YEAR)

Turnover (£ million)	Profit (Before Tax £ million)	Return on Capital Employed (%)
1986	8387	1833	19.5
1987	9424	2067	20.0
1988	10185	2292	20.7
1989	11071	2437	20.8
1990	12315	2692	21.4
1991	13154	3075	20.6
1992	13337	3073	19.3
1993	13242	1972	13.6
1994	13675	2756	17.1

TABLE 2.10

BT'S FINANCIAL RETURNS BY SERVICE (% RATE OF RETURN OF HISTORIC COST ACCOUNTS)

1988/89	1989/90	1990/91	1991/92
ACCESS
Business	-11.1	-13.3	-8.0	-10.5
Residential	-14.6	-14.3	-11.8	-11.8
CALLS
Local	34.7	40.2	43.4	} 57.9
National	57.6	75.0	74.3	}
International	84.1	84.9	81.9	82.3
Inland Private Circuit	19.0	13.6	12.2	12.7
Payphones	-7.2	-20.6	8.5
Total Systems Business	21.7	22.2	22.4	21.4
Other Activities	11.1	13.9	10.8	8.3
Total Group	10.8	18.8	22.6	19.7

Source: OFTEL (1992) and (1994c)
BT'S GROUP AND SYSTEMS BUSINESS ACCOUNTS FOR 1993/94 ON CURRENT AND HISTORIC COST BASES

BT GROUP	SYSTEMS BUSINESS
HCA	CCA	HCA	CCA*
£m	£m	£m	£m
Turnover	13,675	14,675	11,500	11,500
Operating Costs**	(10,660)	(10,660)	(8,437)	(8,437)
Operating Costs CCA Adjustment	N/A	(129)	N/A	(178)
Operating Profit	3,015	2,886	3,063	2,885
Other Profit***	4	4	N/A	N/A
Share Ownership/Interest Payable	(263)	(263)	N/A	N/A
Other CCA Adjustments	N/A	(254)	N/A	N/A
Profit on ordinary activity before taxation	2,756	2,373	N/A	N/A
Total assets less current liabilities	17,021	18,975	17,409	19,065

Notes

* Unaudited results

** Including redundancy and restructuring costs

*** Group’s share of profits of associated undertakings and loss on sale of group undertakings

Source: OFTEL (1994c)
TABLE 2.12 BT'S INVESTMENT AND PRODUCTIVITY

1986	1987	1988	1989	1990	1991	1992	1993	1994
Number of lines (millions)	21.26	21.91	22.66	23.74	24.80	25.37	25.60	26.08	26.64
Number of employees (000)	236	234	232	244	246	227	210	171	156
Lines per employee	90	93	96	97	101	112	122	153	171
Capital investment (£ millions)	1973	2159	2387	2972	3115	2758	2446	2155	2171

Source: OFTEL (1994b)

TABLE 2.13 MERCURY'S FINANCIAL PERFORMANCE

Year	Turnover (£m)	Operating Profit	Net Assets (£m)	Average Number of Employees
1984/85	0.3	-8.4	10.0	374
1985/86	4.4	-20.7	14.9	619
1986/87	18.5	-28.9	18.7	1,366
1987/88	61.6	-11.2	40.3	2,107
1988/89	132.7	26.4	97.2	3,231
1989/90	405.3	62.9	169.2	3,863
1990/91	618.5	120.0	1058.3	4,788
1991/92	837.1	146.1	1076.8	6,369
1992/93	1076.3	185.8	1606.7	7,259
1993/94	1471.0	234.7	1728.9	9,334

Data are in 1993/94 prices.

Source: CRI (1995)
TABLE 2.14 BT'S NETWORK RELIABILITY 1983-1993

Year to 31 March	Local Calls Failure %	National Calls Failure %	Network Only Faults Per Annum %
1983	2.7	5.9	N/A
1984	2.4	5.1	N/A
1985	2.0	4.4	N/A
1986	1.7	4.1	0.20
1987 Mar	2.2	5.4	0.25
1987 Sep	2.2	4.3	0.20
1988 Mar	1.9	3.6	0.22
1988 Sep	1.7	3.5	0.19
1989 Mar	1.4	2.4	0.21
1989 Sep	1.1	1.7	0.17
1990 Mar	1.0	1.2	0.25
1990 Sep	0.6	0.7	0.16
Oct 1990 - Mar 1991	0.54	0.82	0.19
Apr 1991 - Sep 1991	0.34	0.52	0.16
Oct 1991 - Mar 1992	0.26	0.30	0.18
Apr 1992 - Sep 1992	0.20	0.28	0.16
Oct 1992 - Mar 1993	0.15	0.21	0.18
Apr 1993 - Sep 1993	0.11	0.14	0.15
Oct 1993 - Mar 1994	0.09	0.12	0.18
Apr 1994 - Sep 1994	N/A	N/A	0.15

Source: OFTEL (1994a)
TABLE 2.15 CHANGE IN CONSUMER SURPLUS, BY BT SERVICE (£m)

1981-1990	1984-1990
Rentals, of which	-37.9	293.8
Business	-74.3	75.2
Residential	36.4	218.6
Calls, of which	1879.3	1904.7
Local	97.7	407.7
National	1110.4	1067.7
International	671.2	429.3
Private Circuits	-155.9	-83.7

Source: Galal et al (1994)

CHANGE IN CONSUMER SURPLUS, BY YEAR (£m) - SERVICES IN TABLE 2.5

1981	-378.6
1982	-312.5
1983	261.8
1984	378.5
1985	200.4
1986	-7
1987	85.1
1988	335.3
1989	613.4
1990	509.5
1981-1983	-429.3
1984-1990	2114.8

Source: Galal et al (1994)
TABLE 2.17 GROWTH OF MOBILE SUBSCRIBERS (Subscribers at End Year)

Cellnet Subscribers	Vodafone Subscribers	Mercury One-2-One	Orange Subscribers
1985	25,000	20,000	-----	-----
1986	53,000	64,000	-----	-----
1987	112,000	137,000	-----	-----
1988	216,000	262,000	-----	-----
1989	386,000	483,000	-----	-----
1990	490,000	666,000	-----	-----
1991	535,000	698,000	-----	-----
1992	600,000	795,000	-----	-----
1993	906,000	1,052,000	32,000	-----
1994	1,563,000	1,638,000	205,000	c100,000

TABLE 2.18 EXPENDITURE AND REVENUE - UK MOBILE NETWORKS (£M)

Year to March	1985	1986	1987	1988	1989	1990	1991	1992	1993	1994
CAPITAL EXPENDITURE ON UK MOBILE NETWORKS
Vodafone	14	49	28	50	82	130	116	43	91	118
Cellnet	10	22	52	51	61	166	155	88	86	162
One-2-One	--	--	--	--	--	--	--	100	100	96
Orange	--	--	--	--	--	--	--	57	100	75
Total	24	71	80	101	143	296	271	288	377	451
REVENUES FROM UK MOBILE NETWORKS
Vodafone	4	34	68	108	200	361	484	522	581	695
Cellnet	--	12	35	76	143	245	302	340	371	452
One-2-One	--	--	--	--	--	--	--	--	--	8
Orange	--	--	--	--	--	--	--	--	--	0
Total	4	46	103	184	343	606	786	862	952	1155

Figures for 1985 to 1987 are for the Vodafone group rather than purely the Vodafone network. However, Vodafone network revenues are unlikely to be materially different from above. In some cases figures are estimates.

Source: Robert Fleming Estimates
TABLE 2.19

PROFITABILITY OF VODAFONE-RETURN ON ASSETS (%)
3. Japan

# COMPETITION AND REGULATION OF JAPANESE TELECOMMUNICATIONS INDUSTRY

Tsuruhiko NAMBU

Faculty of Economics,

Gakushuin University

and

Economic Research Institute,

Economic Planning Agency

Hiroshi TSUBOUCHI

Economic Research Institute,

Economic Planning Agency

&

Fumito KUROSAWA

Faculty of Economics,

Gakushuin University
### I. Introduction

In 1985 Japanese telecommunications industry was reshaped and several new institutional arrangements were adopted. We will summarize such changes as below.

1) NTT (Nippon Telegraph and Telephone) Corporation was given a birth by replacing public monopoly (Denden Kosha). NTT has become a private company but it is a special entity in that more than 51% of its shares were held by the government and it inherited public obligations as is called “Universal Service”.

2) Instead of Public Telecommunications Law, Telecommunications Business Law came out which has become the key to determine the industrial structure of telecom industry. Under this law telecom service providers are classified into two categories: Type I carrier and Type II carrier. The former owns telecom facilities whereas the latter rents them from Type I carriers. Type II carriers are equal to Value Added Network Service providers (VANS) (See Table-1 and Table-2.).

3) The Ministry of Posts and Telecommunications (MPT) is in charge of regulating Type I & II carriers. In the days of public monopoly Kosha was under the surveillance of the National Diet. Accordingly the regulation of MPT was rather nominal and there could not exist any conflict between MPT and NTT because Kosha system was created in the spirit to encourage and respect the independence of Kosha. Although Denden Kosha was privatized, NTT still has maintained its bureaucratic system.

4) According to the new regime, companies which own telecom facilities are labeled Type I carrier. As a result, Type I carriers include every size of telephone service providers from pager service companies to giant NTT. ALL Type I carriers are required to obtain detailed permission of MPT in doing their business whereas Type II carriers have only to file to MPT.

5) Type I carriers are classified into 5 categories as below (for more details see Table-1)

i) long distance (inter-city)

ii) local (regional)

iii) satellite

iv) mobile

v) international

NTT provides local and long distance services but it can not provide international service. KDD (Kokusai Densin Denwa Corporation) used to provide international service as monopoly but now it has two new competitors.

MPT regulates carriers according to the classification above and accordingly regulatory environment has been created that each carrier must operate in one of the 5 categories. For example, local new comers are mainly composed of subsidiary companies of electric utilities and they are technically interconnectable. But according to the established rule up to now, they cannot enter into long distance market.