Cable and Wireless who own Bulldog look set to try and make the best use that they can of the unbundled service opportunities that running Bulldog can offer. Bulldog currently is offering fully unbundled services from 411 exchanges in the UK, but is expecting to double this number by the end of September 2006. According to the detail over at The Register, the Bulldog LLU infrastructure is considered a strategic asset.
Bulldog currently has around 112,000 residential broadband customers, and 6,000 business LLU customers, which spending on average £36 per month with the company. Part of a new thrust will be to target the larger corporate customers to exploit the fully unbundled nature of its services, and we presume hopefully increase the average spend per customer. In the year ending March 2006, Bulldog had a revenue of £33m, which is £11m higher than the previous year, but made an operating loss of £120m in the same period.
If the expansion continues as expected, then by the end of 2006, we may actually see around 70% of the population with a choice of three or four telephone/broadband operators, this is over and above the large number of providers using the BT Wholesale IPstream and Datastream based products. The Bulldog financial figures do show the real costs of getting to this stage, and that it will only be once the major network builds have finished will the new operators stand a chance of making a profit out of their operations.
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