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BT Moots Outsourcing Deal for Openreach Division

Posted: 04th Oct, 2008 By: MarkJ
Rumour has it that BT Openreach is secretly preparing to outsource its operations to a third party, with both EDS and Alcatel-Lucent being in the frame for a multi-billion pound contract.

Openreach is responsible for ensuring that all rival operators have equality of access to BT's local network, such as the management of local loop unbundling (LLU). BT has neither confirmed nor denied the claims:

BT told The Register : "Openreach continually reviews all aspects of its cost base, operational efficiency and customer service. At any one time we may have a number of programmes in operation or under consideration with outside agencies, many of whom currently partner with us on a wide range of operational activities."

Both Alcatel-Lucent and EDS have elected not to comment, while the Communications Workers Union (CWU), which represents some of BT's staff, did not appear to be aware of any such plans.

BT Openreach currently employs 25,000 engineers and 1,100 customer services staff and BT itself already has an outsourcing contract with Alcatel-Lucent for its Global Services division.

Perhaps of more interest is the fact that BT's former CEO, Ben Verwaayen, recently switched to an identical position at the top of Alcatel-Lucent. Isn't that handy.
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