Feeds

BT shifts network, blame to fourth party

Outsourcing the outsourced

Beginner's guide to SSL certificates

BT is planning to consolidate maintenance contracts on its outsourced local networks, the copper in the ground, to Carillion and Telent in a £1bn cost-cutting measure.

The deal, currently at the letter-of-intent stage, involves putting all the maintenance and extension of BT's local-loop business under one contract in the hope of reducing costs - buying in bulk to get a cheaper rate.

The copper (or aluminium if you're really unlucky) lines in the ground used to be managed by BT, but Ofcom insisted that a separate entity was established to allow competitors to buy access. That company became BT Openreach, which maintains the copper and provides access for companies selling telephony and/or broadband, including BT, at a rate set by Ofcom.

Openreach quickly identified that maintaining the lines was the boring part of the equation and outsourced it to a variety of contractors, who are now up against the wall as Carillion and Telent get a single contract covering the whole business.

The amount that Ofcom lets Openreach charge went up by 5.7 per cent in May this year - less than was expected and, according to Openreach, an amount that left it losing money on every connection. Awarding the contracts to a single company is intended to reduce costs, though it will be another three months or so before any such contract can be signed. ®

Intelligent flash storage arrays

More from The Register

next story
TEEN RAMPAGE: Kids in iPhone 6 'Will it bend' YouTube 'prank'
iPhones bent in Norwich? As if the place wasn't weird enough
Consumers agree to give up first-born child for free Wi-Fi – survey
This Herod network's ace – but crap reception in bullrushes
Crouching tiger, FAST ASLEEP dragon: Smugglers can't shift iPhone 6s
China's grey market reports 'sluggish' sales of Apple mobe
Sea-Me-We 5 construction starts
New sub cable to go live 2016
New EU digi-commish struggles with concepts of net neutrality
Oettinger all about the infrastructure – but not big on substance
EE coughs to BROKEN data usage metrics BLUNDER that short-changes customers
Carrier apologises for 'inflated' measurements cockup
Comcast: Help, help, FCC. Netflix and pals are EXTORTIONISTS
The others guys are being mean so therefore ... monopoly all good, yeah?
Surprise: if you work from home you need the Internet
Buffer-rage sends Aussies out to experience road rage
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.