Telecommunication equipment manufacturers will be forced to expand their markets beyond national boundaries because of deregulation, to compete internationally, and to participate fully in the expansion of data, mobile and other services. Deregulation is providing greater commercial freedom in the EEC, but the investment community has the problem of appreciating the rapid pace of technology, and the mounting development costs of systems which can overshadow actual manufacturing costs. On world scale, Europe is in danger of losing its position as a nett exporter, and it must adopt common standards and bases of co-operation. Progress in information technology offers many opportunities for investment in innovative services and products. The UK is giving a lead in procurement from the European Common Market, but this market is not yet of the size available to the USA and Japan. The EEC must take the initiative to secure its share in the growth market presented by the newly developing countries in the Pacific basin.