Cable & Wireless announced its intention to pursue the broadband market in the U.K. via local unbundling from BT. In a webcast presentation, Cable & Wireless said its initial plans include:
- a target to unbundle up to 400 exchanges by the second half of 2005 which will give Cable & Wireless access to approximately 30% of sites in the UK
- local loop unbundling capital investment is expected to be £40-50 million in the year to 31 March 2005. An additional £15 - 35 million will be required in the year to 31 March 2006, subject to the speed of subscriber growth
- investment will also include operational funding, which is expected to be approximately £30 million in the year to 31 March 2005 and at a similar level in the following year, subject to the speed of subscriber growth
- annual revenue is expected to be approximately £250 million within 4 years.
"Cable & Wireless is uniquely positioned to take advantage of LLU in the UK given the reach of its national network, the second largest in the country. LLU enables Cable & Wireless to establish full ownership of its customers as their sole telecommunications provider reducing reliance on the incumbent. LLU allows us to establish a strong presence in the access network and to unlock the value of our fixed network. Over time this will translate to stronger margins," said Francesco Caio, Chief Executive Officer of Cable & Wireless. http://www.cw.com
