Cable & Wireless Find a Home for their Bulldog

An announcement from Cable & Wireless yesterday marked their withdrawal from direct residential and small business broadband services. The company has agreed to sell Bulldog’s customer base to Pipex for £12m in cash which will be retained by the UK business for reinvestment. This figure is subject to adjustment once the number of customers has been finalised post completion.

A transitional services agreement is also in place to support Bulldog customers during the move to Pipex’s own customer support operations and Pipex will also acquire various rights to the Bulldog brand, including domain names.

At the same time C&W announced Pipex as the first wholesale customer to sign up to use its unbundled local loop (LLU) access network. Expected to be worth in excess of £250 million over five years, the contract sees Cable & Wireless supplying LLU-based broadband services to support Pipex’s existing and future customers on a preferred supplier basis. The contract value is dependent upon actual customer numbers over the term of the contract.

John Pluthero, Group Managing Director of Cable & Wireless UK, commented: “Pipex is an existing and valued customer of ours were pleased to be able to grow our relationship.”

Peter Dubens, Chairman of Pipex, said “We are delighted to welcome all the Bulldog customers to the Pipex Group and are very pleased to have Cable & Wireless as a wholesale supplier. Going forward, this relationship will add breadth to the choice of services that we are able to offer to all of our customers.”

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