Satdude
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C&W turns back on retail broadband
Cable & Wireless on Thursday ditched the retail broadband market in yet another reversal of strategy, but its shares rose on hopes its plans to focus on wholesale customers have a greater chance of success.
Britain's number two network operator after BT Group said about 150 jobs, mainly in sales and marketing, would go at its loss-making Bulldog broadband unit, but played down hopes of huge cost savings this year.
C&W said its Bulldog Internet unit would offer a wholesale product to other broadband providers from July, which would require some additional investment.
Bulldog, bought by C&W in 2004 for 18 million pounds, was billed as C&W's main vehicle for the UK consumer market, but the need for huge investment coupled with a string of losses has left investors disappointed.
C&W has spent about 278 million pounds on the business, including losses of 160 million pounds it posted last year. Analysts expect Bulldog to lose a further 90 million this year.
John Pluthero, C&W's UK head, said the group had been looking to maximise the return on its investment in Bulldog and believed wholesaling was the best way to achieve it.
However, he ruled out a sale of Bulldog, saying the group had considered that option but decided against it.
"I'm not selling the asset. The asset is a very important part of both the next-generation infrastructure and the proposition I want to run for the top end of the corporate and government market," Pluthero told reporters.
Regards Satdude.
Cable & Wireless on Thursday ditched the retail broadband market in yet another reversal of strategy, but its shares rose on hopes its plans to focus on wholesale customers have a greater chance of success.
Britain's number two network operator after BT Group said about 150 jobs, mainly in sales and marketing, would go at its loss-making Bulldog broadband unit, but played down hopes of huge cost savings this year.
C&W said its Bulldog Internet unit would offer a wholesale product to other broadband providers from July, which would require some additional investment.
Bulldog, bought by C&W in 2004 for 18 million pounds, was billed as C&W's main vehicle for the UK consumer market, but the need for huge investment coupled with a string of losses has left investors disappointed.
C&W has spent about 278 million pounds on the business, including losses of 160 million pounds it posted last year. Analysts expect Bulldog to lose a further 90 million this year.
John Pluthero, C&W's UK head, said the group had been looking to maximise the return on its investment in Bulldog and believed wholesaling was the best way to achieve it.
However, he ruled out a sale of Bulldog, saying the group had considered that option but decided against it.
"I'm not selling the asset. The asset is a very important part of both the next-generation infrastructure and the proposition I want to run for the top end of the corporate and government market," Pluthero told reporters.
Regards Satdude.