Does anyone know the reason why International numbers cannot be displayed ??
From the little I know of Caller-ID, the info is sent as a burst of 1200 Baud modem data between the first and second rings. I assume the UK data format is different from other countries' and there are possibly so many different formats, it wouldn't be practical for the exchange to try to decode them all.
That's not the issue. Phone calls are not passed around the network on analogue trunks. The network is digital, with signalling typically using a protocol such as SS7.
In-band tones are only used for analogue end-users. ISDN end-users have caller ID presented to them digitally in the D channel, which carries all ISDN signalling, not the B channel used for the call itself.
The reason international caller ID is not presented to the recipient is because the data received from overseas is not necessarily accurate and, in particular, the instruction to withhold caller ID from the recipient is not necessarily passed correctly, creating privacy and data protection issues. Extensive testing was carried out in the UK to ensure withholding worked correctly before caller ID presentation became available to subscribers.
Junk callers go to great lengths to present spoof caller ID. I believe there are companies selling connections to the phone network with the ability to present spoof caller ID via SS7 as a feature. When the phone network detects obviously wrong caller ID, 'unavailable' is presented to the end-user, though unavailable can arise in other ways (notably calls presented by older equipment that doesn't include any caller ID in the signalling).
I'm going from probably faulty memory of information I've gleaned as a relative outsider in these matters. There are likely to be others reading who have more direct experience of these things.