Mercury Communications
| Company type | Subsidiary |
|---|---|
| Industry | Telecommunications |
| Founded | 1981 |
| Founder | Cable & Wireless, Barclays, BP |
| Defunct | 1997 |
| Fate | Merged back into Cable & Wireless |
| Successor | Cable & Wireless Communications |
| Headquarters | United Kingdom , United Kingdom |
Area served | United Kingdom |
Key people | Sir Michael Edwardes (inaugural chairman) |
| Products | Fixed-line telephony, mobile services, payphones |
| Owner | Cable & Wireless (subsidiary) |
| Parent | Cable & Wireless |
Mercury Communications Ltd. was a British national telecommunications company created in 1981 as a subsidiary of Cable & Wireless with the objective of breaking the monopoly held by British Telecom (BT). Although it achieved limited success in competing against BT, Mercury played a crucial role in opening the UK telecom market to future challengers. The brand ceased to exist in 1997 after being merged back into Cable & Wireless.
Background: prior to 1981
The origins of telecommunications in the UK trace back to 1879 when The Telephone Company (Bells Patents) Ltd inaugurated the first telephone exchange in London. In 1881, the National Telephone Company (NTC) began consolidating numerous small local providers. By 1911, most rivals had been absorbed by either the General Post Office (GPO) or NTC. The enactment of the Telephone Transfer Act 1911 resulted in NTC’s acquisition by the GPO in 1912, establishing a government-controlled monopoly that lasted almost seven decades.
During the 1920s, competition arose from radio communication companies such as Marconi's Wireless Telegraph Company. By 1928, all telecommunications assets outside of the UK but within the British Empire were unified under what evolved into Cable & Wireless by 1934.
Following the Labour Party’s victory in 1945, Cable & Wireless was nationalised in 1947 and remained state-owned, managing overseas telecom assets, while domestic UK assets were merged with the GPO’s monopoly services.
In 1969, the Post Office replaced the General Post Office as a public corporation. In October 1981, this entity was divided into two separate organizations: the Post Office and British Telecommunications. That same year marked the start of privatisation efforts under Prime Minister Thatcher’s government targeting state monopolies such as British Telecommunications and Cable & Wireless, which then concentrated largely on its Hong Kong business.
Mercury: 1981–1997
Established in 1981, Mercury Communications Ltd was a partnership formed by Cable & Wireless alongside Barclays and BP to rival British Telecom. Sir Michael Edwardes, renowned for revitalising British Leyland, served as its inaugural chairman. Mercury secured its operating licence in 1982 and became a fully licensed Public Telecommunications Operator by 1984 when Cable & Wireless bought out its partners’ shares.
In 1989, Mercury collaborated with Motorola and Shaye Communications to launch Callpoint, a mobile service based on Telepoint technology. However, it struggled against emerging cellular networks and was discontinued in 1991.
July 1991 saw Mercury Personal Communications Network (PCN) Ltd awarded a licence to develop a UK PCN network, positioning itself against competitors such as Orange and Unitel. PCNs sought to outperform traditional cellular systems by allowing calls from multiple environments including home and while traveling.
In November 1992, Cable & Wireless divested a 20% shareholding for around £480 million to BCE of Canada, parent company of Bell Canada International, bringing valuable telecom expertise and ownership stakes in two UK cable firms.
Operating under the brand One2One, Mercury Personal Communications was a joint venture equally owned by Cable & Wireless and US West International. It launched Britain’s first GSM network operating at 1800 MHz in 1993, entering competition with established players like Vodafone and Cellnet.
Mercury also forged partnerships with sixteen UK cable companies to provide bundled telephone and television services. By January 1993, it supplied more than 117,000 telephone lines to these cable operators. In October 1996, Mercury merged with three UK cable companies—Vidéotron, Nynex, and Bell Cable media—and was rebranded as Cable & Wireless Communications, with Cable & Wireless plc retaining a majority stake of 53%; subsequently, the Mercury brand was phased out.
Following this restructuring, One2One was sold to T-Mobile in 1999, and Cable & Wireless sold its stake in CWC’s consumer division to NTL (now operating as Virgin Media) in 2000.
Payphones and Mobile Services
Beginning in 1986, Mercury managed public payphone services across the UK, entering the market as a competitor to BT. These payphones, recognized for their diverse architectural styles, ultimately failed to generate profits and were divested in 1995.
In 1993, Mercury introduced the UK's first GSM 1800 mobile phone network under the brand Mercury One2one, initially servicing London within the boundaries of the M25. The service featured complimentary calls from mobile to landline during off-peak hours, weekends, and Bank Holidays within local zones. Even after the service ended, certain SIM cards maintained these perks and commanded high resale prices. By 1997, coverage had expanded to a nationwide scale. In 1999, One2One was acquired by Deutsche Telekom for £8.4 billion and was rebranded as T-Mobile in 2002.
Fixed-line Telephone Services
Initially, Mercury provided fixed-line telephony directly to businesses and households via its 'Mercury 2300' service, which users accessed by dialing a '131' prefix followed by a customer-specific code on existing BT lines. Some telephone models incorporated a dedicated 'Mercury button' to facilitate easier call initiation.
Subsequently, Mercury introduced an indirect access method requiring only the entry of an access code (132) before the destination number. Additionally, Mercury played a role in supporting backbone infrastructure for nascent British cable companies delivering fixed-line telephony.
In 1990, Mercury expanded into the Private Branch eXchange arena by acquiring Telephone Rentals through Cable & Wireless. This allowed call traffic to be diverted from BT onto Mercury’s network using the Smart Box device. However, Mercury withdrew from this sector in 1996, selling the operation to Siemens, which then established Siemens Business Communication Systems (SBCS).
Following its absorption into Cable & Wireless Communications, the Mercury brand was phased out in 1997. The consumer segment was purchased by NTL in 1999, subsequently transferred to Npower in 2001 before being discontinued.
Mercury’s influence endures through its initial sponsorship of the Mercury Music Prize, a role now held by Free Now.
See also
External links
- Articles with short description
- Defunct telecommunications companies of the United Kingdom
- British companies established in 1981
- British companies disestablished in 1997
- Telecommunications companies established in 1981
- Telecommunications companies disestablished in 1997
- 1981 establishments in England
- 1997 disestablishments in England