Recast C&W invests in U.S. e-business firm
LONDON, Dec 1 (Reuters) - Britain's Cable and Wireless Plc announced on Wednesday a strategic agreement with U.S. e-business group Internet Commerce Corp , a further step in C&W's web strategy aimed at lifting margins.
The telecommunications group will invest $10 million in ICC and bundle ICC products with its own web-based operations, marketing the joint services in countries served by C&W.
The agreement with ICC, which provides e-commerce services to businesses, was part of C&W's goal of repositioning itself as a global Internet provider, C&W said in a statement.
Analysts have expressed doubts about whether the group can pull off a transformation into a high margin, corporate Internet and data services group, but C&W has started the shift.
The company has sold off stakes in mobile providers and last month it joined forces with U.S. computer maker Compaq Computer Corp. to create web business links for small and medium-sized firms.
"Today's announcement moves our strategy even further forward, and demonstrates our understanding of the needs of the global IP (Internet Protocol) and e-commerce marketplace," Mike McTighe, chief executive of C&W Global Operations, said.
Last month, C&W reported a 39 percent fall in half-year pre-tax profits to 539 million pounds ($862 million) alongside a 25 percent jump in revenues to 4.51 billion pounds.
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