Plessey Co Plc has decided definitely to tender in its own right for one of the two to four UK Telepoint cordless telephone service operator’s licence – and has made what could turn out to be an inspired choice as its partner, in the shape of the commercial arm of the city of Hull, Yorkshire, which has operated its own telephone service since time immemorial and two years ago turned the Telephone Department into a company and engage in commercial marketing and service activities beyond Humberside (CI No 466). And Plessey has chosen to team up with that company, Kingston Communications Ltd to bid for a Telepoint licence, its decision causing the GEC Plessey Telecommunications Ltd to think better of its idea of applying for a licence of its own. As for GEC Plessey, it is said to have decided that it would be inappropriate to set up in competition with its major customer British Telecom. A spokesman for Plessey said that GEC Plessey would still have a role to play in the forthcoming service – as an equipment supplier – while the new joint venture with Hull, Plessey Telecommunications Systems Ltd, would operate solely as a network provider. A spokesman for Plessey said that the combined strengths of the two firms made it a hot contender for the sought-after Telepoint licences. Kingston brings experience of operating a network with 150,000 subscribers, while Plessey brings scale and resources plus an a nationwide maintenance network already in existence. Financial details of the new company were not disclosed, other than the fact it is jointly owned by its two parents, and that it is expected to have to invest some UKP60m on putting a network in place by 1991. GEC Plc also said that it will be applying for a licence – probably with a partner.
