Barrett slams high cost of UK telecoms

Telecoms Intel CEO warns that expense will stifle e-commerce.

Intel chief executive Craig Barrett used his visit to the UK last week to hit out at high telecoms charges and a failure to implement PC technology in education.

Barrett, who also spoke at the House of Commons as part of a joint educational initiative with the University of Oxford, told 500 business users in London that internet access in the UK was over two-and-a-half times more expensive than in the US.

He warned that high charges would stifle the development of e-commerce: 'The revised rules are for 24-hour, instant access to information. This gives rise to a different form of competition. Small companies can act like big companies and big companies can act like small companies.

'There are substantially higher charges in the UK than in the US,' Barrett added. 'The UK is about two-and-a-half times more expensive. The lower the charges, the more access there is. They need to come down in western Europe.'

He stated that estimates of internet world trade of between $450 billion and $500 billion by 2002 were conservative. Intel had started a pilot programme in July and had already turned over $2 billion of revenue, which is expected to rise to $20 billion next year.

Barrett added that penetration of the US market for PCs was approximately 50 per cent, which gave Europe more opportunity for growth.

He also launched an attack on network computers (NC), claiming only Larry Ellison, chief executive of Oracle, still believed it was a viable option.

Barrett added: 'The whole concept of NCs has been pretty well answered by the public. Only Ellison hasn't heard that message.'

Intel's stance on the NC follows a similar statement from Microsoft chief executive Bill Gates two weeks ago. But the chip giant is still pushing its own definition for thin clients. It is understood to be using the StrongArm chip as the basis for a system that could act as a Windows terminal.

Barrett called on European IT and telecoms commissioner Martin Bangemann to lend his support to more initiatives to improve technology skills.

He challenged the commissioner to support programmes set up by European universities and business schools to develop digital literacy and IT skills, urging EU governments to remove tax barriers to encourage employee PC purchases, such as the example allowed in Sweden.

'Use of the Net and development of e-commerce applications require the development of digital literacy and strong IT skills,' Barrett argued.

'Some European academic establishments are not offering a curriculum that addresses the future. More help and support is needed from governments to encourage universities and business schools to use and teach alternative technologies and ways of doing business.'

He called on governments not to place restrictions on use and supply of encryption products, as France has done, claiming this will deter companies from carrying out e-commerce with French firms.