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By Tony Hallett, 2 September 1998 09:48

NEWS Redstone Telecom today launched a UK telecoms network which it claims will allow the company to wrest business customers from BT and Cable & Wireless Communications, especially in regional towns. However, the three year old company has avoided rolling out complex and expensive network infrastructure by doing a deal with Fibernet, a company known for its high-speed fibre-optic data network. Redstone has signed a ten year, £1.8m contract with Fibernet which guarantees the telco capacity as required. Graham Cove, Redstone Telecom managing director, said that gives the company an advantage. "Traditionally, large telcos have built networks and that costs of hundreds of millions of pounds, and that obviously have to be passed on to customers," he told Silicon News. "We've taken a radical approach in partnering with Fibernet who already have a network running data. We're going to use that network to run our voice services all over the UK." Cove said Fibernet is known for its high service levels, and will bring competition to areas of the UK which have missed out since the market has been deregulated. Graham Finnie, Yankee Group Europe research director, commented: "Fibernet have a good, modern network, so they look like a good partner. And it's true, a lot of the new network activity has been concentrated in London and on the major routes, so if they go elsewhere, they could do well." Cove said medium sized businesses will now benefit in particular, but denied the company's existing customer base - predominantly made up of consumers and small businesses - will suffer. Fibernet's TANet network will be connected to Redstone's Nokia-made switches, providing points of presence in 39 UK towns and cities.