British telco KCom (formerly Kingston Communications) has outsourced the management of its network assets to incumbent BT, as it looks to shift the focus of its group’s businesses. KCom claims that the agreement will see it ‘reduce the ongoing fixed costs and capital expenditure associated with the management of its network infrastructure’, and the operator also maintains that it will be able to extend its network reach through access to BT’s national network. The managed network services agreement will see the phased and controlled outsource of network management to BT over next few years, although the initial stage of the project is expected to be complete by September. Under the terms of the deal BT will manage, maintain and enhance network operations, network management and vendor management on KCom’s behalf, which the latter says will allow it to focus on meeting the needs of its customers. Bill Halbert, KCom’s deputy executive chairman said of the deal: ‘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.’
The move comes as part of a wider ranging strategy to refocus the group’s business. It plans to concentrate on two core businesses: the first being its East Yorkshire fixed network activities and national broadband ISP Eclipse Internet, and the second the managed communications business serving the needs of the enterprise and public sector markets.