Options Explored for Network Construction Business
British Telecommunications PLC
3 May 2000
BT EXPLORES GROWTH OPTIONS FOR UK
NETWORK CONSTRUCTION BUSINESS
BT today launched a fundamental review of its UK-based
network construction business and announced that it is
considering separating it from the company's network
operations.
The options currently under active consideration for
the future ownership of the construction business are the
creation of a joint venture, a management buy-out or
flotation. A feasibility study has now been launched to
establish the best approach.
Networkbuild, a unit within BT's networks and
information services division, currently employs about
10,000 people. It carries out work with an estimated market
value of around £400 million a year.
Management aims to capitalise on the massive growth in
commercial opportunities in network construction arising
from the roll out of technologies such as ADSL and 3G mobile
and the explosion in licensing of new operators. Increasing
opportunities exist to carry out work for other licensed
operators both in the UK and overseas.
Paul Reynolds, managing director, networks and
information services, said: 'In a booming market for mobile,
Internet, data and access networks, this move has the
potential to unleash the tremendous growth locked up within
the network construction business. It gives its people the
freedom to get out there into the open market and deliver
increased value both for their own business and for BT.'
Dave Mowbray, general manager of Networkbuild, said:
'This is a huge opportunity for us to grow in a thriving
sector. We have the resources, skills and track record to
compete successfully in a vigorous and demanding market.
Network construction is growing fast. Some exciting and very
tangible business opportunities exist. This is a very
positive move for the business and the people employed
within it.'
Note to editors: Networkbuild was created within BT's
networks and information services division in 1996. It
undertakes capital construction work for BT creating
infrastructure for voice, data, mobile and IP traffic and
has been winning competitive bids for an increasing volume
of external business, including from overseas.
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