IBM has finally confirmed that its global network, which has been valued at between $3bn and $4bn, is on the auction block. As reported, IBM will use Merrill Lynch to overlook the sale of the network infrastructure, which includes 1,350 local dial access points in 900 cities serving 45,000 customers. IBM’s reason for getting rid of one of the world’s largest datacoms networks at a time when telecommunications carriers are scrabbling for wide international coverage is to focus on providing its IT and e-business services such as web content hosting, electronic data interchange services, Lotus Notes deployment, and network application integration. A number of telecommunications companies will undoubtedly be interested in sale and Cable & Wireless Plc, which recently signed a large outsourcing deal with IBM, is just one of the large operators telco considered as a possible candidate for the buy-out. If it finds a suitable buyer the network, IBM will carry on offering outsourcing services, but will lease the necessary network capacity from both the purchaser of the network and other carriers.
