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.............................. Cable & Wireless
Logo and Trademark..............................
Cable and Wireless (LSE: CW.) is a British telecommunications company. In the mid-1980s, it became the first company in the UK to offer an alternative telephone service to British Telecom (via subsidiary Mercury Communications, merged into C&W in 1997). The company later offered cable TV to its customers, but it sold its cable assets to NTL in 2000. The company re-entered the FTSE 100 Index in December 2006. after relegation from it to the FTSE 250 Index in June 2006.
Historically, Cable and Wireless has had a strong market presence in many current and former British colonies where it provided local telephone service. It was awarded the 1996 Worldaware Business Award for its long term commitment to developing Cable links in the Pacific region (especially Fiji, Vanuatu, Tonga and the Solomon Islands). The company had a virtual monopoly amongst the colonies in the Caribbean region. In recent years, their market share has somewhat diminished with the dismantling of their regional monopoly and the introduction of more competition in the Caribbean, particularly from Digicel. The company was also the main fixed line operator in Hong Kong until the sale of Hong Kong Telecom to Pacific Century Cyberworks.
The company remains the main fixed-line provider in the British Virgin Islands, Cayman Islands, Panama, Macau, Maldives, Monaco, Seychelles, the Falkland Islands, St. Helena and Guernsey, where it operates under its own brand name Sure Mobile, while in Bermuda it provides international communications only; local services are provided by Bermuda Telephone Company.
Under the stewardship of CEO Graham Wallace, Cable and Wireless turned from a cash-rich company with a world-wide presence and 20 billion pounds in the bank to a service provider with a small cash reserve, struggling to survive in its home market, the UK, and a few legacy overseas operations. Under Wallace the company entered into a costly buying spree, trying to control the global IP & Internet market with its acquisition of INSNET in July 1999 along with 18 other mainland Europe ISPs, at inflated prices. In 2000 it pulled out of the UK consumer market, selling its assets to NTL. C&W remains the 3rd biggest supplier of IP services to FTSE350 customers behind BT and MCI/Verizon. However, with recent cable company consolidation it can no longer claim its position as the second largest UK fixed player. The fortunes of the international wholesale telecoms division of C&W UK is significant - accounting for over one third of UK revenues. Indeed, its international wholesale voice operation and European IP (AS1273) remain sizable, but commercially struggling.
Following acquisition of Energis in August 2005, C&W strengthened its UK position but still have only half the Internet Access corporate market share of former incumbent (BT). Former CEO Francesco Caio publicly stated the aim of making C&W the preferred alternative to BT in the UK. John Pluthero, on his accession in the Energis management takeover, modified this to be the leading UK IP services company.
C&W also bought Bulldog Communications in the UK, providing it with an LLU network as well as a consumer broadband Internet service provider. During aggressive expansion it gained a poor reputation for provisioning and customer service. Falling new sales and a strategy change led C&W to sell the brand and customer base to Pipex in September 2006. It continues to own, and wholesale on, the LLU capability.
Cable & Wireless maintains an ownership footprint in many of the small "empire colonies" such as West Indies, Maldives, Seychelles, Panama. Whilst OPTUS in Australia and HKT in HongKong were sold in 2000, C&W Int remains a sizable and profitable operation and has added some assets including Guernsey and Monaco. Pressure from increasing competition has been compensated by mobile and broadband revenue growth. For the past year, the company has operated, under chairman Richard Lapthorne, separate P&Ls for C&W UK and C&W International.
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