At that time the General Post Office (GPO) managed the British telephone system and its head, the Postmaster-General, was so impressed with the demonstration that he decided to cooperate with AT&T and the Western Electric Company to create a commercial transatlantic telephone service using radio signals. The GPO built a 200 kilowatt transmitter at the Post Office Station at Rugby and experiments began to improve transmission to such a point that it was commercially viable. Furthermore the telephone network infrastructure in Britain and the United States required substantial development.
In February 1926, the engineers achieved two-way voice communication between the two radio stations and a month later journalists gathered at the trunk exchanges in London and New York to take part in a demonstration of two-way voice communication. Finally, on 7th January 1927, the service opened with a call between Sir Evelyn Murray, the Secretary of the GPO and Walter S. Gifford, the president of AT&T, followed by calls between those subscribers who had booked calls for that day.