Wednesday, June 7, 2006

Cable & Wireless Shifts to Wholesale Broadband Strategy

Cable & Wireless will adopt a wholesale strategy with regard to consumer and small business services delivered over its local loop network. Starting next month, the company's Bulldog division will offer wholesale services to other broadband providers. Bulldog will cease its own proactive sales and marketing to attract new residential or small business customers. It will continue as a retail brand for existing customers.

Cable & Wireless said its local loop rollout plan remains unchanged -- a total of 800 fully un-bundled local exchanges are expected to be online by 30-Sept-2006 (411 exchanges were unbundled as of 31-Mar-2006).

Cable & Wireless will use the local loop network to deliver business-class services, as well as for the wholesale service.

  • In February 2006, Cable & Wireless provided an update on its restructuring plans, saying its UK business plans to reduce its customer base from a total of approximately 30,000 customers to about 3,000 large corporate customers and public institutions. The company hopes that concentrating on fewer, larger customers, and by reducing the complexity in its products, systems and processes, it will be able to increase its margins from 33% today to 40%.

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