Racal Electronics plans to set up a joint venture to expand its group network services and safeguard its market position.
`I wouldn’t rule out any link up with the other operators,’ said a spokesman.
A partnership is most likely to come from an organisation with a substantial European customer base. Most of Racal’s telecom customers are in the UK, through the leasing of Racal-BRT to railway stations and small carriers short on infrastructure.
Next year’s opening up of the European telecoms industry means an early Continental foothold will give new entrants a competitive edge.
Racal Network Services, which has concentrated on datacoms and managed services, accounts for 55% of Racal Electronics’ near-£1bn turnover.
Racal has already ruled out selling half of Racal Network Services to American carrier GTE.