British telecommunications provider KCOM Group has signed an agreement with BT to outsource the management of its network assets to BT’s wholesale division and extend its network reach through access to BT’s national network.
The deal focuses on KCOM’s two core businesses, the East Yorkshire activities and Eclipse Internet, and the managed communications business. The deal is expected to reduce the ongoing fixed costs and capital expenditure associated with the management of KCOM’s network infrastructure.
The company said that retention of KCOM’s existing fibre access network, coupled with access to BT’s network scale and service capability will strengthen its position in the provision of communications services to its target markets.
The outsourcing agreement will span over the next few years and BT is expected to manage, maintain and enhance network operations, network management and vendor management on KCOM’s behalf.
Bill Halbert, deputy executive chairman 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.
