Cable&wireless Takeover of Energis

Cable&wireless takeover of Energis

Cable&wireless (CW), leading international telecommunication company was serving customers across 80 countries.CW was providing voice and data services to business customers, mobile operators, telecom carriers, and residential customers. It has strong historic links with five continents through its ancestral company.CW clinched the takeover of privately owned Energis for ‘GBP 674 million’ ($1.2 billion) in 16thAugust 2005. The takeover of ‘Energis’ would retain the corporate customers of Energis, by strengthening CW position in the tough telecom market. But analyst from ‘Dow Jones’ felt that the deal would not be spectacular as expected in terms of changing pricing environment of Telecom sector in UK.

Cable&Wireless:

John Pender was established the telegraph construction and maintenance company called as “Telcon” in 17th march 1864 with GBP1,00,000 as capital.Telcon was created with the amalgamation of “Gutta Percha “company and “Glass Elliott” (cable manufacturers of Greenwich). Cable&wireless was played an important role in the development of telecommunications across the globe in the early 1960s.

John Pender established the first telegraph company called as “Falmouth Gibraltar” and “Malta” in 1869; after the completion of cable chain between England and India by means of cables via Gibraltar and Portugal. The cable link was completed on 1870 by connecting London with Bombay. In 1872, “Eastern Telegraph” company was formed by merger of the smaller telegraph companies including “Gibraltar and Malta”. This company was extended huge network of telegraphs by creating new pathways as well as doubled and trebled cables on busy existed routes. Eastern telegraph concern became the part of “Eastern and associated Telegraph” (EAT) companies in the early 20th century. EAT was integrated with many other telegraph companies in the entire world.

In 1934 , “Imperial and international telecommunication”, formerly called as Eastern Telegraph concern became “Cable&wireless”. The new name was coined to reflect their combined service offerings such as radio and cable services; without reference to the British Empire. Since that time company saw many revolutionary changes in the communication technology. Cable&wireless was handed over the external telecommunication operations to the national bodies as they were established after the formation of “common wealth” associations of sovereign states. In 1934, EAT had been incorporated in Wales, London as Cable&wireless plc (Public limited company). Historically in many of its operations, Cable&wireless was the sole telecommunication provider which was focused on switching voices and data services delivered over traditional phone lines.

In 1942 , Australia and New Zealand were proposed “national communication scheme “which removed the control of communication operations of Cable&wireless. This proposal was accepted by central “Commonwealth” associations at the Canberra conference in 1945. CW opposed this made proposal because it was in favor of independent countries, belonging to the common wealth associations. In 1947, the overseas telecommunication commission (Australia) was formed to take over from CW.

From 1960 to 1980, the involvement of CW in Australia was made major ‘international coaxial cable projects’ such as COMPAC, SEACOM, and ANZCAN. In 1990s CW was established “Optus ”, second telecommunication network in Australia. Optus network was covered 5,000 km through fibre optic cable in 1994.

In 23rdJan2004 CWA (Subsidiary of CW in US) was entered in to bankruptcy on the basis of chapter 11 and US operations were sold to “SAWIS Communication Corporation” for about US $155 million cash excluding the assumed liabilities of US $ 12.4 million on the basis of auction. In Japan, subsidiary of CW was sold to “Soft Bank Corporation” for GBP 71.7 million comprised of GBP62.3 million cash in the same year. In 28th may 2004, CW acquired 100% stake of “Bulldog communications Ltd” (Company was provided broadband services to residential and business customers in UK) for worth of about GBP 18.6 million as well as it acquired 55% of Monaco telecom SAM (Monaco based telecommunication service provider) from “Vivendi universal” for deal of worth about GBP 108 million (Euro 162 million) in 18th June 2004.

Cable&wireless was the leading international telecommunication company with the principal operations in UK, Caribbean island, Panama, Macau, and Monaca. It service offerings