CABLE & WIRELESS yesterday pledged to invest more than £100 million in developing ultra-fast broadband internet services in an attempt to build a £250 million business over the next four years.
Unlike broadband competitors such as AOL and Wanadoo, Cable & Wireless plans to target heavy users — small and medium-sized companies, plus consumers who want connections capable of carrying television down telephone lines.
Francesco Caio, chief executive, said that he believed the company — Britain’s second-biggest fixed-line carrier — was “uniquely positioned” to take on BT in this way, given “the reach of its national network”.
Cable & Wireless plans to take advantage of regulatory changes, announced earlier this year, that make it easier for companies to take control of BT phone lines between a customer’s home or office, and the telephone exchange.
This process is known as “local loop unbundling” and gives BT’s competitors the opportunity to deploy innovative services if they are prepared to invest heavily in the equipment required to deliver them.
Advertisement
Cable & Wireless is targetting 400 of BT’s busiest exchanges, covering major urban centres across the country, over the next 18 months. The service will be available from the company’s recently acquired Bulldog subsidiary.
The Bulldog service was made available in London earlier this month. It offers a 4 megabit connection — eight times faster than a typical domestic broadband link — which also carries a customer’s telephone calls. The package, usage of which is unlimited, is priced at £52 a month for consumers, and £67 a month for businesses.