BT Ignite snubs parent

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BT Ignite snubs parent

Emma Nash
BT Ignite has embarrassed its parent company by signing a voice and data provision contract with one of British Telecom's rivals, Thus.

Details of the contract with the ScottishPower-owned telco have not been confirmed. It is a significant deal, however, which could herald greater competition in the telecoms arena.

Judy Jerome, IT information analyst at Bloor Research, welcomed the news. "My initial reaction is I'm shocked BT Ignite is able to do this; and very, very pleased because this is how the market should be," she told CW360.com.

BT is clearly embarrassed by the news. The company initially denied all knowledge of the deal, but later admitted that a contract with Thus did exist.

Thus, however, told CW360.com: "There certainly is a contract, but we are not able to give any further details other than to say we have signed it and it is for voice and data [provision]."

Bloor's Jerome believes the contract could provide Thus with a new lease of life. "From Thus's point of view, it needed a major injection of revenue to keep itself going, and this may be it," she said.

Jerome also thought that the move could ultimately prove to be a positive one for BT because it may force the company to operate differently.

"BT has a lot to answer for. It needs to sit back and see where its position is on ISPs and offering Internet services. It may make BT more responsive," she said.

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