News of strategic agreement between BT Group and KCOM

In order for its network to reach further by using the BT national network KCOM have announced that it has signed a strategic agreement with BT Group, which will see the BT wholesale division managing its network assets.

The KCOM Group will receive very important benefits from the signing of this latest agreement and is based directly on last November’s strategic review by KCOM Group.

A reduction of costs and more focus on its business model were a few of the main areas that KCOM said in June that it would concentrate over the next year.

The capital expenditure and the ongoing fixed costs for KCOM that come with managing its own network infrastructure are set to be reduced following the agreement with BT. The move will also give KCOM a considerably stronger position providing its target market with communications services with the access to the sheer service capabilities and network scale on offer from BT coupled with the retention of KCOMs fibre optic network.

The first phase of the work is set to end in September and next couple of year should see a controlled and phased outsourcing of the operation of KCOMs network in the UK by BT as part of the new managed network service agreement. KCOM will then be able to concentrate on giving its customers its full support whilst BT takes over the management and maintenance of its network.

Deputy Executive Chairman, Bill Halbert said “This agreement is an important step in the transformation of the KCOM Group. It will allow us to reduce our fixed costs and capital expenditure significantly, while strengthening our competitive position and ability to grow. In addition to creating a more variable cost model, it gives us the ability to offer more extensive and competitive carrier and managed communications services and new next generation propositions to our customers. ”

The Chief Executive for BT Wholesale, Sally Davis said “This is one of the most exciting developments to happen in the UK fixed line communications market for some time. It allows KCOM’s business to benefit from BT’s national reach as well as our significant ongoing investments in 21st century network infrastructure and next generation product and service developments. We are delighted that KCOM has chosen BT and look forward to working together to build a strong and lasting relationship.”

Source – www.webwire.com