Feeds

C&W flogs US retail voice biz

It's an ISP thing

  • alert
  • submit to reddit

Remote control for virtualized desktops

ComputerWire: IT Industry Intelligence

Cable & Wireless Plc plans to sell its US retail customer base to a subsidiary of Primus Telecommunications Group Inc for $32m, as part of the restructuring of its US operations to focus on data and internet services.

Subject to approval by relevant regulatory authorities in the US, the cash deal is expected to be completed by January 2003, when the majority of C&W's 35,000 client base (made up of mostly small to medium-sized businesses) should be migrated over to Primus's retail business network.

Primus is an ISP based in McLean, Virginia that offers bundled internet, e-commerce, web hosting and voice services. The sale is expected to double the size of its retail business.

According to a C&W spokesperson, the traditional voice business climate has proved to be extremely tough, making a loss for C&W over the last couple of years. The London, UK-based carrier has issued three profit warnings in the last 18 months, and is expected to issue an update on trading conditions later this week. On the plus side, C&W is cash rich, with a net cash pile of approximately 2.6bn pounds ($4.01bn) as of March.

C&W still has a strong presence in web hosting, following its acquisitions of Digital Island and Exodus, and provides data services to enterprises in the US, as well as international voice services to carriers.

© ComputerWire

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
The DRUGSTORES DON'T WORK, CVS makes IT WORSE ... for Apple Pay
Goog Wallet apparently also spurned in NFC lockdown
IBM, backing away from hardware? NEVER!
Don't be so sure, so-surers
Hey - who wants 4.8 TERABYTES almost AS FAST AS MEMORY?
China's Memblaze says they've got it in PCIe. Yow
Microsoft brings the CLOUD that GOES ON FOREVER
Sky's the limit with unrestricted space in the cloud
This time it's SO REAL: Overcoming the open-source orgasm myth with TODO
If the web giants need it to work, hey, maybe it'll work
'ANYTHING BUT STABLE' Netflix suffers BIG Europe-wide outage
Friday night LIVE? Nope. The only thing streaming are tears down my face
Google roolz! Nest buys Revolv, KILLS new sales of home hub
Take my temperature, I'm feeling a little bit dizzy
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
The Heartbleed Bug: how to protect your business with Symantec
What happens when the next Heartbleed (or worse) comes along, and what can you do to weather another chapter in an all-too-familiar string of debilitating attacks?