TXE, which stands for telephone exchange electronic, was the designation given to a family of telephone exchanges developed by the British General Post Office (GPO), now BT, designed to replace the ageing Strowger systems.
When World War II ended, the UK telephone exchange suppliers supported the GPO’s decision to stay with Strowger until a viable electronic system became available. The GPO largely did this to protect their success in the export market, but it actually had the effect of ultimately destroying it. This allowed competitors to develop their own improved switching systems ahead of the GPO. In 1960 the situation rapidly changed when the Australian PO rejected a system from a consortium of British manufacturers who offered a register-controlled version of a motor-uniselector system in favour of a crossbar system from the Swedish firm of Ericsson. Suddenly the rules had changed and the race was on to develop an electronic telephone exchange that could operate with the current GPO Telephones used in the UK, including shared service.
Just before World War II, Tommy Flowers MBE, employed at the GPO, had been working on VF (voice frequency) signalling, using valves (vacuum tubes), and this had led him to realise that valves could be very reliable if not switched on and off. This gave him the confidence during the war to build the world's first digital computer, called Colossus, at Bletchley Park. This computer used about a thousand valves and was a major factor in helping British Intelligence to break the German codes, though details of this were only released in 2000. After the war, the success of Colossus encouraged him to contemplate the possibility of telephone exchanges each using tens of thousands of valves. He was told that this was impossible and he could not say he had already done it with Colossus because he was bound by the Official Secrets Act. However, a fully electronic prototype Time Division Multiplex Model Exchange was constructed at the Post Office Research Station at Dollis Hill and then an experimental TDM exchange system was built and tested at Highgate Wood, North London, in 1962, but it was found to be beyond the technology of the time: the solid-state switching worked well, but the analogue transmission (which had worked on the short cable runs of a laboratory model at Dollis Hill) was too noisy for public service on the long cable runs of a large exchange. However, the principles would be used later, as transmission became digital, in the development of digital exchanges the world over, including System X.