New players capture mouse's share of the telco market

Despite deregulation of the telecoms market new operators are failing to capitalise on market opportunities.

So say analysts at Dataquest's Predicts '99 conference in Paris this week. With public telephony operators retaining the lion's share of the carrier market, they claim the benefits of opening up the telecoms market are not petering through. BT is holding onto 76 percent of the UK's market, while companies such as France Telecom control 97 percent in its market.

New operators seem unable to capture the corporate user market and only discounted telephone calls are enough to entice users to go with an untried operator. Steve Wallage, principal analyst at Dataquest said: "To be a price discounter is not a sustainable position."

He believes operators must target specific areas and tailor services in order to compete with telecoms giants.