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Redstone loopy about broadband

Offers unbundled services from April

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Redstone is to bring forward the launch date for its unbundled broadband services following an agreement with BT.

The first service should be in available in Portsmouth from April followed by Southampton, Newbury, Nottingham and Cambridge which, like Portsmouth, are all areas with high business density.

The deal with BT means Redstone can offer unbundled broadband services ahead of the 1 July deadline.

The move also means that Redstone should begin to make cash sooner - rather than later - and reduce the level of funding it needs to keep the operation ticking over.

In a statement, Graham Cove, CEO of Redstone, said: "We are... bringing forward the launch of broadband services in selected areas with a high business density [and] this current plan also advances our move towards profitability."

The market reacted favourably to Redstone's announcement with its share price making a 20 per cent gain by lunchtime. It started the day at 128p and by 1.00pm had reached 156p. ®

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