Kcom pares back and takes aim at bigger rivals

Let's get together: channel onlookers claim Affiniti could have been more tightly integrated sooner

The KCOM Group claims it has trimmed the fat from its business and is primed to compete with the UK's top telcos after a structural overhaul.

Subsidiary Kingston Communications will live on in Hull and East Yorkshire, but its national operations have been merged with integrator Affiniti. The firms have been relaunched as Kcom, with Affiniti top dog Paul Renucci serving as managing director.

"To a degree, there was a lack of clarity as to who we were and what we did, " said Renucci. "Essentially, this is about clarity of focus in terms of our employees, customers and shareholders."

Renucci indicated that systems integration specialist Smart421 will operate independently but "synergistically" to Kcom.

He also revealed that Kcom has already swiped its first major deal, winning a contract with a 12,000-seat firm.

"Big organisations typically feel they have to go to someone like BT, Cable & Wireless or IBM, but they do not always enjoy it," he said. "We are a reasonably sized or ganisation with access to the national infrastructure of BT, wrapped up with Kcom's experience."

Renucci claimed the services-centred firm now saw technology as a "means to an end" and was selling "50 per cent of the product volumes we were doing at our peak".

He added that vendor partners would endorse the move and that "Cisco is still very important to us".

"We are walking away from business that will be fulfilled anyway and vendors will gain incremental business," he said.

"The business has pared back and eliminated areas that had less profitability and more cost. We are now looking for profitable growth."

The announcement appears to put an end to the frequent channel rumours of Affiniti being spun off from the KCOM Group.

"By virtue of being a PLC we are up for sale, but anything else is just speculation," said Renucci.

Keith Humphreys, managing consultant at euroLAN, claimed tighter integration could have taken place when Affiniti was acquired five years ago.

"They have different roles but are complementary," he said. "I think this is a logical step. I do no not why they were ever separated."