Cable & Wireless announced a major restructuring under which it will withdraw from the U.S. market. Earlier in the year, Cable & Wireless had been optimistic that it could continue to build its business serving multinational enterprises and other carriers in the U.S. However, Cable & Wireless has now concluded that there is not a long-term viable business model, as its U.S. operations continue to consume cash and have had limited interaction with the rest of the Cable & Wireless group. Various options are being considered to withdraw from the market. Cable & Wireless now plans to focus its attention on the UK, where its market share is second only to BT. The larger strategy is to create a group of profitable national telecom companies with strong positions in their primary markets. The restructuring will result in 1,500 layoffs in the coming 18 months.
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- In April 2003, Cable & Wireless appointed Francesco Caio as its new CEO, replacing Graham Wallace. Caio formerly served as CEO and founder of Netscalibur and previously CEO of Omnitel and Merloni. Cable & Wireless also named Kevin Loosemore to serve in the newly created position of COO. Loosemore previously was Regional President for EMEA of Motorola and formerly CEO of IBM UK.
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In January 2003, Cable & Wireless appointed Richard Lapthorne as its non-executive Chairman, to replace the retiring Sir Ralph Robins. At the time, Lapthorne also served as Chairman of Amersham plc, Morse PLC, Avecia plc, Tunstall Holdings Ltd and TI Automotive.
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In November 2002, Cable & Wireless first announced plans to withdraw from domestic business markets in the US and in Continental Europe — except for multinational Enterprise and Service Provider customers.
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In July 2002, Cable & Wireless upgraded the US portion of its global IP network to OC-192 running MPLS from coast-to-coast. Cable & Wireless activated OC-192 in Q4 connecting Washington, DC and New York with London, Paris, Brussels, Amsterdam and Frankfurt. The company then added Anaheim, Atlanta, Chicago, Dallas and Santa Clara. Cable & Wireless said its upgraded network enables it to deliver OC-48/STM-16 IP access services to carriers, content providers, ISPs and large enterprises.
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In November 2001, Cable and Wireless agreed to acquire Exodus for US$850 million. Exodus was in Chapter 11 bankruptcy proceedings at the time. Previously, Cable & Wireless had acquired Digital Island and its content delivery network for approximately US$340 million.
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Cable & Wireless’ other acquisitions included MCI’s Internet backbone.