New regulations being brought in by the EU will hand the balance of power back to BT, giving the company greater control over how competitors access the new fibre optic broadband network.
Currently with copper network there is a system known as Local Loop Unbundling (LLU) where other broadband providers access the network at the exchange, where they install their own equipment enabling them to offer cheaper broadband.
However, the new rules mean that competitors will have to access the new fibre installations through a Virtual Unbundled Local Access (VULA).
These new arrangements mean that competitors will only gain control of the customer’s line; while BT will be installing the equipment at the exchange and will be able to charge what they want, as there will not be any caps on pricing when it comes to VULA.
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BT will keep control of fibre broadband network
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The broadband and phone service provider KCOM, who were formally known as Kingston Communications, have made a return to profits following large losses in the previous year.
The company reports a pre tax profit £19.2 million for the year ending in March, the previous year’s results showed a loss of £111 million.
According to the executive Chairman Bill Halbert, KCOM are now benefiting from a wider strategy and working on business that returns a higher margin.
It seems that the company are slightly down in terms of revenues, but clearly, the cost cutting exercise carried out during restructuring has made a big difference to the company’s finances.
Currently KCOM are investing in rebranding the business that provides telecoms in Hull, and is also making plans to expand the service to outlying villages.
KCOM back in the black
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BT Group reported a stronger-than-forecast fiscal fourth-quarter profit of 208 million pounds compared with a loss of £1.01 billion in the same period of the previous year.
The previous year’s result included a one-off charge of £1.3 billion charge in its global services division.
BT was helped by a 16% fall in labour costs after cutting 20,000 jobs during the year.
The group’s revenue fell 2% to £5.36 billion, with sales falling across the group’s divisions.
The global services unit performed well, winning £2.2 billion of orders, from major companies such as British Airways and J Sainsbury Plc.
The company is continuing to invest in its fibre-optic network, pushing capital expenditure up by 12 per cent in the fourth-quarter.
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BT reports better than expected profit
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Axis Network Technology Ltd of Aylesbury, Buckinghamshire, has been purchased by South Korean companies Ace Technologies Corp and Ace & Partners for USD 35 million.
Ace Technologies has acquired 55% of Axis, while Ace & Partners purchased 45%.
The deal will expand Ace’s wireless network business with the addition of Remote Radio Heads.
The will strengthen the company’s platform for compact base stations and integrated and active antennas.
Simon Mellor, CEO of Axis, said, “This is an exciting strategic acquisition that provides both companies with greatly enhanced business opportunities.
“The combination of Axis Network Technology’s market leading knowledge and expertise in remote radio head products together with Ace Technologies Corp.’s advanced antenna systems and RF components create a global powerhouse in the 4G LTE and WiMAX infrastructure markets.”
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A new company, with the grand ambition of giving its customers instant access to everything, everywhere, has been created through the merger of T-Mobile and Orange UK.
Everything Everywhere will have over 30 million customers and will offer a single super-network to give customers better coverage.
The two brands are expected to retain their individual identities, although there will be some integration to save costs, with back office jobs expected to go.
While both brands are big names in the consumer market, the joint venture hopes to expand in the UK business market, and develop new revenue streams from mobile advertising and mobile commerce.
Seems like its ‘everthing everywhere’ ambition might stretch to ‘everybody’ too.
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