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KCOM Extends UK Voice and Broadband ISP Network via BT Deal

Posted: 22nd Jun, 2009 By: MarkJ
The KCOM Group (Kingston Communications, Eclipse Internet), which is best known for being the dominant fixed telephone line (voice and broadband) operator in Hull (Karoo), has announced a new deal with BT to extend its UK network reach through access to BT’s national infrastructure. It will also outsource the management of its network assets to BT Wholesale.

Bill Halbert, KCOM's Deputy Executive Chairman, says:
"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."

Sally Davis, Chief Executive of BT Wholesale, 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."

Neil Gower, one of KCOM's Executive Directors, will oversee the initial phase of BT's management. Once this is complete on 1st September, having transferred most of his current responsibilities, he will retire.

KCOM itself will now focus on two core businesses: its East Yorkshire activities + UK ISP Eclipse Internet, and the managed communications business serving the needs of enterprise and public sector markets. However some will see the move as an attempt by KCOM to scale back its ambitions.
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