Cable companies hold crisis talks

The world's experts in global networks will meet in London today to discuss how traditional cable companies can prevent the tidal wave of deregulation crushing their businesses.

Senior executives from Alcatel and Cable & Wireless Global Marine - which flourished in the days of monopolistic telecommunications - will discuss the issues with new market players such as Global Crossing.

Claire Prince, conference producer at IBC, which is organising the Submarine Communications event, said the big question is how telcos can retain market share in the face of growing competition.

"Traditional cable companies need to work out a new model for raising finance," she said. "Increasingly, IT companies and banks are staking their own claims to the global networks, in co-ownership deals such as Flag and Se-me-we 3."

Paul Gabla, director of central marketing at Alcatel Submarine Networks, will explain in the conference's opening session that global networks are not the gentlemen's club they used to be.

He said: "Global networks used to be operated by specialist suppliers. But now that telecommunications have been deregulated, entrepreneurs from the financial and IT sectors are stepping in as middle-men, and selling bandwidth to the operators." He cited Global Crossing as a case in point.

Gabla said the other big change under discussion will be the Internet. "Voice traffic used to be the driving force behind the industry - but growth rarely exceeded 15 per cent," he said. "Now that the Internet is the driving demand for more bandwidth, growth is far higher - over 100 per cent each year."

International delegates will have three days to discuss the issues and construct new alliances.

Submarine Communications will be held at the Dorchester Hotel, London. Interested participants can register on the day for £1,199, or see IBC UK's Web site at www.ibc-uk.com/submarine for further details.