Scotland: Phone Firms In Independence Warning

A "Yes" vote in the Scottish independence referendum on Thursday could lead to increased costs in the telecommunications industry, leading phone companies have said.

The chief executives of six companies - BT Group, TalkTalk Group, Telefonica UK (O2), Vodafone UK, EE and Three UK - warn in an open letter that a number of "strategic and operational" factors would need to be resolved in the event of Scotland voting to separate from the UK.

Sky's City Editor Mark Kleinman revealed the companies were in talks about a joint statement on the issue on Friday.

In the letter, the companies said they may need to modify networks and consider whether to modify the services offered in an independent Scotland.

Services such as the roll out of faster broadband to parts of Scotland could be affected, the document says.

While the firms said their commitment to providing and investing in high-quality, affordable services to all of their customers in the UK will be "completely unaffected" by the outcome, a number of issues would need to be resolved.

The letter says: "Specifically, we would need to know how a Scottish telecoms industry would be regulated. Would there be continuity with the current European Union regulatory framework so that we would continue to operate across the border with common infrastructure under a single set of rules?

The majority of opinion polls suggest the 'No' camp has the edge

"What approach would the government of an independent Scotland take to the radio spectrum - currently licensed on a UK-wide basis - without which mobile networks cannot operate?

"We may also need to modify our networks to reflect the reality of an independent Scotland; and we may need to consider whether to modify the services offered in Scotland, given its relatively demanding topography and relatively low population density.

"Any of these factors could lead to increased industry costs."

The companies said that they remain "fully committed" to their customers, employees and operations in Scotland whatever the outcome of the poll.

The referendum campaign has entered its final weekend

The warning comes after a number of retailers said customers would face higher prices in the event of independence.

Scottish Labour leader Johann Lamont said: "We now have clear warnings from some of the largest employers in Scotland - Asda, John Lewis, B&Q, Marks and Spencer, Timpson, BT, TalkTalk, Iceland, O2, Vodafone, EE, Three and others - that costs for everyday things would go up if we leave the UK.

"No doubt the nationalists will promise another day of reckoning for these firms, but the people of Scotland are more rational and pragmatic about these things. We don't deny the reality. Being part of the UK keeps costs down for families here in Scotland."

Mr Salmond told Sky News earlier that what he calls an "orchestrated campaign of intimidation" will not work and there will be a "Yes" vote on Thursday.

"The people of Scotland are not going to have big government orchestrating big oil and big supermarkets to tell us we can't run our own country," the First Minister said.

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