8th Jun 2006 07:00
PRESS RELEASE Announcement 8 June 2006 CABLE & WIRELESS ANNOUNCES WHOLESALE BROADBAND STRATEGY TO LEVERAGE RETURNS FROM LOCAL LOOP CAPABILITYCable and Wireless plc ("Cable & Wireless") today (8 June 2006) announcesthat it will adopt a revised strategy in relation to the consumer and smallbusiness element of its local loop capability.From 1 July 2006, Bulldog will: * Offer a wholesale product to major broadband service providers. Discussions with a number of potential customers for this wholesale service are ongoing; * Cease any further proactive sales, marketing or advertising activities to acquire new residential and small business customers; * Continue as a retail brand for existing customers with ongoing customer care and launch of new innovative services. As a result of the move to wholesaling, Bulldog will reduce headcount byapproximately 150, mainly from the areas of sales and marketing.The local loop rollout plan is unchanged with a target of 800 fully unbundledexchanges by 30 September 2006, (411 unbundled at 31 March 2006). It isintended that, by the end of this calendar year (2006), Cable & Wireless willuse this local loop capability for corporate customer access, in addition tothe wholesale offer provided.Cable & Wireless expects limited benefits from the move to wholesale during2006/07 as Bulldog completes the local loop roll out and invests in wholesalingcapability. Specific guidance will be provided at the interim results on 8November 2006.John Pluthero, Group Managing Director, UK said: "As the market leader in fulllocal loop unbundling, we have been looking at the best way to maximise thereturn on our investment. We believe that a wholesaling approach to theconsumer and SME market is the best way to optimise our return from our uniquelocal loop network capability."ENDSConference call details:Cable & Wireless will host a conference call for investors and analysts at 08:15 BST today, Thursday 8 June. Participants can join the call from 08.00 bydialling +44 (0)20 7138 0827 and quoting reference `Cable & Wirelessannouncement'. A replay facility will be available for one week by dialling +44(0)20 7806 1970 and quoting the replay passcode 1242046#About Cable & Wireless:Cable & Wireless is one of the world's leading international communicationscompanies. It operates through two standalone business units - Internationaland UK.The International business unit operates integrated telecommunicationscompanies in 33 countries offering mobile, broadband, domestic andinternational fixed line services to residential and business customers, withprincipal operations in the Caribbean, Panama, Macau, Monaco and the ChannelIslands.The UK business unit provides enterprise and carrier solutions to the largestusers of telecoms services across the UK, US, continental Europe and Asia, andwholesale and residential broadband services in the UK through Bulldog.For more information about Cable & Wireless, go to www.cw.com .For further information:Clare Waters Director of External Affairs +44 (0)20 7315 4088 Ashley Rayfield Investor Relations Director +44 (0)20 7315 4460 Craig Thornton Investor Relations Manager +44 (0)20 7315 6225 Antonia Graham Head of Corporate and UK PR +44 (0)7803 724 111 Press Office Cable & Wireless +44 (0)1344 818 888 Rollo Head Finsbury +44 (0)20 7251 3801 James Wyatt-Tilby Finsbury +44 (0)20 7251 3801 Forward-looking statements:This announcement contains forward-looking statements that are based on currentexpectations or beliefs, as well as assumptions about future events. Theseforward-looking statements can be identified by the fact that they do notrelate only to historical or current facts. Forward-looking statements oftenuse words such as anticipate, target, expect, estimate, intend, plan, goal,believe, will, may, should, would, could or other words of similar meaning.Undue reliance should not be placed on any such statements because, by theirvery nature, they are subject to known and unknown risks and uncertainties andcan be affected by other factors that could cause actual results, and Cable &Wireless' plans and objectives, to differ materially from those expressed orimplied in the forward-looking statements.There are several factors that could cause actual results to differ materiallyfrom those expressed or implied in forward-looking statements. Among thefactors that could cause actual results to differ materially from thosedescribed in the forward-looking statements are changes in the global,political, economic, business, competitive, market and regulatory forces,future exchange and interest rates, changes in tax rates and future businesscombinations or dispositions. A summary of some of the potential risks faced byCable & Wireless is set out in the Company's most recent Annual Report.Cable & Wireless undertakes no obligation to revise or update anyforward-looking statement contained within this announcement, regardless ofwhether those statements are affected as a result of new information, futureevents or otherwise.ENDCable & Wireless PLCRelated Shares:
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