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Story URL: http://networks.silicon.com/broadband/0,39024661,11017624,00.htm

Commercial landlords to offer comms services to tenants

By Lisa Burroughes

Published: Tuesday 23 May 2000

Commercial property companies in the UK are setting up a consortium to negotiate better voice and data communications services for their tenants.

Agents such as Legal & General, Norwich Union and Prudential, and property developer MEPC, are holding talks with suppliers to negotiate bulk-buying deals. If an agreement is reached, the companies claim their tenants could receive a discount of up to 20 per cent discount in communications services - and the landlords would take a small cut of that.

The consortium will use the same bulk-buying position to negotiate the installation of fibre optic networks into buildings that would otherwise not have an alternative to BT's local loop.

Stuart Beevor, managing director of Legal & General's property management arm, claimed this will particularly benefit small businesses. He said: "Most small tenants can't afford to put in their own wiring. But this would mean the landlord can agree the terms with the supplier while the tenant gets better value and a more effective service."

Peter Crowcombe, director at analyst house Infonetics Europe, welcomed the move. "This would be particularly beneficial in multi-tenanted buildings, and for SMEs because they have traditionally been served by BT on a piecemeal basis. However, with this deal the landlord can arrange a fibre connection to be installed into the building and then split off to the individual companies," he said.

Crowcombe added: "About 80 per cent of organisations moving into a new building would be glad to have the communications provided for them in the same way that gas, electricity and water is generally provided for them now."

The companies involved are hoping to have deals agreed by the end of the year. Ian Womack, property advisor at Norwich Union, said: "Providing this kind of service would make our property more attractive because we would be providing what is now the fundamental technology that all businesses need."