UK telco Cable & Wireless has revealed an ambitious plan to reach around a third of all homes and businesses in the UK via local loop unbundling (LLU). The company says it will invest GBP50 million this year on the development of its broadband internet services, with another GBP35 million to be spent in 2005. C&W wants to ‘unbundle’ 400 of BT’s most heavily used telephone exchanges, allowing it to take full control of last-mile connections and offer its own high speed services.
The telco first moved into the LLU market earlier this year with its GBP18.6 million acquisition of Bulldog Communications, one of the few companies in the UK which provides telephone services via unbundled local loops. The UK telecoms watchdog Ofcom recently recommended a series of hefty cuts to the prices BT charges competitors to take control of telephone lines, a move which could encourage more companies like C&W to follow the LLU route.