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KCOM outsources network to BT as it looks to cut costs

Alex Scroxton

KCOM has signed a deal with BT to outsource the management of its network in a move aimed at cutting costs.

As expected KCOM has followed up its  full year results, which indicated the aim of reducing costs with the BT deal which means that it can reduce its investment in the network and its exposure to operating costs.

The outsourcing deal will take several years to complete, with the first stage working to a deadline of September, but eventually BT will maintain and manage network operations.

Neil Gower, one of KCOM's Executive Directors will oversee the initial phase of BT's management of the network operations to be completed by September and then he will retire.

The deal with BT had been mooted last month but in its announcement around the deal KCOM emphasised that it would enhance its ability to offer better network scale and services.

"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," stated Bill Halbert, deputy executive chairman at KCOM.



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