Standard Telephones and Cables

Standard Telephones and Cables, commonly known as STC, was a British telecommunications equipment manufacturer whose history stretched from the early telephone industry of the 1880s to the consolidation of the global telecoms sector in the early 1990s. The company was established in London in 1883 as International Western Electric, an overseas agent and manufacturing affiliate of the American Western Electric Company. Its initial business involved supplying telephones and telephone exchanges designed in the United States to emerging British telephone companies. As import costs and local production requirements increased, the business acquired a failing cable factory at North Woolwich in 1898 and progressively expanded from distribution into cable manufacture, equipment assembly and engineering. The company became a British-incorporated entity in 1910. During the First World War it contributed cable, wireless and military communications technology to the war effort. The development of radio broadcasting after the war created another growth opportunity. Western Electric technology was used in radio receivers, and the company joined competitors in the consortium that established the British Broadcasting Company in 1922, the predecessor of the modern BBC. STC also commercially exploited electron-tube technology and built a broader portfolio spanning telephony, radio, broadcasting, military communications and transmission systems. A major ownership and identity change occurred in 1925, when Western Electric disposed of its international operations. International Telephone and Telegraph acquired the business and renamed it Standard Telephones and Cables. Under ITT ownership, STC pursued research-led expansion and developed or manufactured multi-channel transmission systems, microwave equipment, coaxial cables, radio systems and electronic components. Brimar, established in 1933, produced American-pattern electron tubes. STC also supplied communications and radio systems for the ocean liners Queen Mary and Queen Elizabeth and undertook substantial military work during the Second World War, including radar, navigational aids, aerial communications and the OBOE bombing-navigation system. After the war, STC participated in the expansion of television broadcasting and supplied equipment used in the United Kingdom's television transmission network, including technology associated with coverage of Queen Elizabeth II's coronation in 1953. Its business also extended to civil aviation, maritime communications, railway signalling and international submarine telephone cables. A production facility opened at Southampton in 1956, and the acquisition of Submarine Cables Ltd in 1970 strengthened STC's position in submarine cable systems. The company became an important supplier of systems linking rivers, coastal waters, the Atlantic and Pacific routes. STC was also a significant participant in the transition from analogue to digital telecommunications. Its engineers developed and patented pulse-code modulation, or PCM, in 1938, although practical implementation had to wait for advances in semiconductor and switching technology. The company installed an early PCM-controlled digital telephone exchange at Moorgate in London in 1971 and was involved with the development of System X, a fully digital public telephone switching system developed with GEC and Plessey. STC's Standard Telecommunication Laboratories in Harlow played a particularly important role in optical communications. In 1966, Charles Kao demonstrated there that glass fibre could carry speech and data over long distances with sufficiently low loss. Commercial fibre-optic deployment followed in Britain in the 1970s, and STC later manufactured equipment and cable used in the country's transition away from metal trunk networks. The company's later history was more difficult. ITT sold most of its STC interest between 1979 and 1982 to raise funds for its own System 12 switching programme. STC became independent and was admitted to the London Stock Exchange in 1982, later becoming a constituent of the FTSE 100. It attempted to broaden its position through information technology and acquired ICL, believing that telecommunications and computing would converge. The timing and scale of this strategy contributed to financial pressure, while STC also faced an ageing workforce, expensive and dispersed production facilities, competition following the privatisation of British Telecom and uncertainty over succession and corporate direction. Nortel acquired STC in 1991. The Australian operation was sold to Alcatel Australia in 1987. Although the STC corporate brand disappeared after the Nortel acquisition, its technical legacy includes PCM development, optical-fibre research, submarine cables, digital switching and communications systems used in broadcasting, transport and defence.

Standard Telephones and Cables originated in London in 1883 as International Western Electric, an overseas representative of the Western Electric Company. It sold American-designed telephones and exchanges to British telephone companies at a time when national telephone networks were still fragmented and developing. In 1898 it purchased a failing cable factory at North Woolwich, giving the business a domestic manufacturing base and allowing it to move beyond importation into cable production, equipment assembly and engineering. The business was incorporated in Britain in 1910. The First World War redirected the company's resources toward military communications, cable work and wireless technology. In the post-war period, radio became a major area of activity. Western Electric equipment supported the emerging broadcasting industry, and the company joined a consortium of competitors that established the British Broadcasting Company in 1922. Electron-tube technology, radio receivers and communications equipment broadened the company's technical base. In 1925 Western Electric sold its international operations to International Telephone and Telegraph. ITT renamed the British business Standard Telephones and Cables and encouraged it to operate as a research-oriented international telecommunications manufacturer. During the 1930s STC expanded into multi-channel transmission, microwave communications, coaxial cabling and electron tubes. Brimar was created in 1933 to manufacture American-pattern valves. STC supplied complete radio systems for the Queen Mary and Queen Elizabeth and developed a wide range of communications equipment before and during the Second World War. Wartime work included radar, navigation, aerial communications and the OBOE system. The 1950s brought rapid growth in television transmission and maritime communications. STC equipment was used in British television broadcasting, including the coverage of the 1953 coronation. The company supplied communications systems for ships, civil aviation and railway operations, while its cable activities expanded from domestic and coastal routes to international submarine links. A Southampton manufacturing plant opened in 1956. The 1970 acquisition of Submarine Cables Ltd made STC a major international participant in submarine telecommunications. STC's research laboratories were central to the industry's transition toward digital and optical communications. The company patented pulse-code modulation in 1938, a method of representing analogue voice signals digitally, and eventually produced practical PCM systems as semiconductor technology matured. In 1966 Charles Kao, working at Standard Telecommunication Laboratories in Harlow, demonstrated the feasibility of transmitting information through optical fibre with low enough loss for communications. Commercial fibre links followed in Britain during the 1970s. STC also installed a PCM-controlled digital exchange at Moorgate in 1971 and participated with GEC and Plessey in the development of System X, a digital public telephone switching system. The company's corporate structure changed substantially at the end of the 1970s. ITT sold most of its stake between 1979 and 1982 to finance development of its own System 12 switching platform. STC became independent in 1982 and was listed in London, eventually entering the FTSE 100. It then pursued diversification into computing and acquired ICL, reflecting contemporary expectations that telecommunications and information technology would converge. The strategy came before the market was ready and added financial and managerial complexity. STC was also affected by the loss of business following British Telecom's privatisation, high manufacturing costs, multiple sites and an ageing workforce. Nortel acquired the company in 1991. Its Australian operation had already been sold to Alcatel Australia in 1987. STC therefore ended as an independent corporate brand, although many of its technologies and research achievements influenced later digital, fibre-optic and submarine telecommunications systems.

• 1991

  Acquired by Nortel

  [1]Standard Telephones and Cablesen.wikipedia.org

  Nortel bought STC, ending its existence as an independent public telecommunications manufacturer.

• 1982

  Independent public company

  [1]Standard Telephones and Cablesen.wikipedia.org

  STC became independent and was listed on the London Stock Exchange after ITT sold most of its interest.

• 1977

  Commercial fibre-optic link installed in England

  [1]Standard Telephones and Cablesen.wikipedia.org

  A commercial optical-fibre link entered service in England, demonstrating the practical value of STC's research.

• 1971

  PCM digital exchange installed at Moorgate

  [1]Standard Telephones and Cablesen.wikipedia.org

  STC installed a fully digital PCM-controlled tandem telephone exchange in the City of London.

• 1970

  Submarine Cables Ltd acquired

  [1]Standard Telephones and Cablesen.wikipedia.org

  The acquisition strengthened STC's position in submarine telecommunications cable systems.

• 1966

  Optical-fibre communications demonstration

  [1]Standard Telephones and Cablesen.wikipedia.org

  Charles Kao demonstrated at STC's Standard Telecommunication Laboratories that optical fibre could carry voice and data over useful distances.

• 1956

  Southampton production facility opened

  [1]Standard Telephones and Cablesen.wikipedia.org

  A new production facility supported STC's expanding cable and international communications activities.

• 1938

  Pulse-code modulation patented

  [1]Standard Telephones and Cablesen.wikipedia.org

  STC patented pulse-code modulation, an important foundation for later digital voice transmission.

• 1925

  Acquired by ITT and renamed STC

  [1]Standard Telephones and Cablesen.wikipedia.org

  International Telephone and Telegraph acquired Western Electric's international operations and adopted the Standard Telephones and Cables name for the British business.

• 1922

  Participation in the British Broadcasting Company

  [1]Standard Telephones and Cablesen.wikipedia.org

  STC's predecessor joined competitors in the consortium that established the British Broadcasting Company.

• 1910

  British incorporation

  [1]Standard Telephones and Cablesen.wikipedia.org

  The business was incorporated as a British legal entity.

• 1898

  North Woolwich cable factory acquired

  [1]Standard Telephones and Cablesen.wikipedia.org

  The company purchased a failing electrical cable factory and began building a domestic manufacturing capability.

• 1883

  International Western Electric established in London

  [1]Standard Telephones and Cablesen.wikipedia.org

  Western Electric created a British operation to sell American-designed telephones and exchanges to developing telephone companies.

An engineering-led telecommunications systems supplier combining telephone and cable manufacturing with advanced research in digital transmission, switching, radio, submarine communications and optical fibre.

• Telecommunications infrastructure

  Telephone exchanges and switching systems

  STC manufactured telephone exchange equipment ranging from early electromechanical systems to electronic and digital switching platforms. Its work included TXE4 electronic exchanges, the PCM-controlled Moorgate tandem exchange and participation in System X, a digital switching system developed with GEC and Plessey for the British public telephone network.

• Digital transmission · 1938

  Pulse-code modulation systems

  Pulse-code modulation converted analogue voice signals into digital form for multiplexed transmission. STC patented the technique in 1938 and later developed practical equipment after transistor and semiconductor advances made high-volume digital telecommunications feasible.

• Telecommunications transmission · 1966

  Optical-fibre communications

  Research at STC's Standard Telecommunication Laboratories helped establish optical fibre as a viable medium for high-speed voice and data transmission. Charles Kao's 1966 demonstration was followed by commercial fibre deployment in England in 1977 and later contributed to the replacement of long-distance metal cable networks.

• Undersea communications

  Submarine telecommunications cables

  STC produced and installed submarine cables for telephone and other international communications. The Southampton operation and the 1970 acquisition of Submarine Cables Ltd supported expansion from local and coastal routes to transatlantic and transpacific systems.

• Broadcast and wireless infrastructure

  Radio, television and microwave systems

  The company supplied radio receivers, microwave transmission equipment and television broadcasting infrastructure. Its systems were used in British broadcasting and in specialized maritime, aviation and shipboard communications, including radio systems for major ocean liners.

• Defence communications

  Military communications and radar equipment

  During both world-war periods, and especially from 1939 to 1945, STC and its predecessor supplied military communications technology. Activities included wireless systems, radar, navigational aids, aerial communications and equipment associated with the OBOE navigation system.

• Electronic components · 1933

  Electron tubes

  Through Brimar, established in 1933, STC manufactured electron tubes based on American patterns. These components supported radio, television and communications equipment during the pre-transistor and early post-war eras.

• 1991

  Sale to NortelM&A

  Background

  STC faced financial difficulties, an ageing workforce, expensive production sites, loss of business after British Telecom's privatisation and uncertainty over long-term leadership.

  Action taken

  Northern Telecom acquired STC.

  Aftermath

  STC ceased to operate as an independent corporate brand, while selected capabilities and technology became part of Nortel's business.

  Source

• 1987

  Sale of the Australian operationM&A

  Background

  STC was restructuring its international operations during a period of consolidation in telecommunications equipment.

  Action taken

  The Australian operation was sold to Alcatel Australia.

  Aftermath

  STC's international footprint was reduced before the eventual sale of the remaining company to Nortel.

  Source

• 1987

  Acquisition of ICLM&A

  Background

  STC pursued the contemporary idea that computing and telecommunications would converge into a unified technology industry.

  Action taken

  STC acquired ICL and attempted to broaden its business from telecommunications equipment into computing.

  Aftermath

  The strategy was undertaken before the expected convergence had matured and contributed to financial and managerial strain; ICL was ring-fenced as a profit centre.

  Source

• 1982

  Separation from ITT and public listingStrategy

  Background

  ITT needed cash to support development of its System 12 switching system and reduced its ownership of STC.

  Action taken

  STC became an independent company and was listed on the London Stock Exchange.

  Aftermath

  STC gained access to public capital and for a period became one of the United Kingdom's largest listed companies, including membership of the FTSE 100.

  Source

• 1970

  Acquisition of Submarine Cables LtdM&A

  Background

  International telephone traffic increasingly depended on reliable submarine cable routes.

  Action taken

  STC acquired Submarine Cables Ltd and expanded its undersea cable activities.

  Aftermath

  STC became a major supplier of submarine telecommunications systems spanning regional and intercontinental routes.

  Source

• 1925

  ITT acquires the international Western Electric operationsM&A

  Background

  Western Electric disposed of its international operations, and International Telephone and Telegraph sought to build a worldwide telecommunications manufacturing network.

  Action taken

  ITT acquired the British operation and renamed it Standard Telephones and Cables.

  Aftermath

  The new STC identity became associated with research-driven expansion in telephone equipment, radio, cable, switching and transmission technologies.

  Source

1. 1Standard Telephones and Cablesen.wikipedia.org
2. 2STL Harlow Quarter Century Clubstlqcc.org.uk