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West Midlands picks Avanti to fill broadband gaps

Deal done

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The West Midlands looks set to receive blanket broadband coverage from next summer following a dealwith broadband outfit Avanti.

The West Midlands Networking Company (WMNC) - which is working on behalf of the regional development agency Advantage West Midlands - is paying Avanti £358,000 to install its wireless broadband network in rural areas that are not served by broadband-enabled telephone exchanges.

AIM-listed Avanti reckons the deal could be worth around £1.2m over the lifetime of the five year deal, estimating that revenues from subscribers could add up to £155,000 a year.

Two months ago WMNC signed a deal with BT to bring ADSL services to 45 areas in the Midlands and the South West of England. Despite this major investment there were still some rural areas that would not be covered by this injection of public sector funds.

The deal with Avanti is designed to fill the gaps left from the BT deal. ®

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