UU unplugs telecom plan

By DAILY MAIL REPORTER
Updated:

 

United Utilities has given up on a revolutionary new telephone service, Nor.web, that some hoped would transform its fortunes.

The out-of-favour utility and Canadian partner Nortel worked for two years on a technology to send telecoms data down electricity wires. UU says the technology worked, but potential utility clients got cold feet about launching a radical new service in a competitive telecoms market. Orders were slow and UU decided to stop investing.

Nor.web's closure will have 'no material impact' on the partners. UU says plans to float its telecoms arm within two years are unaffected, but the shares fell 10p to 722 1/2p.

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