BT iNet arm focuses on mid-market firms

BT's new iNet arm merges its BT TNS and BT Skynet businesses, offering IP services to firms

BT last week announced it had merged its BT TNS and BT SkyNet businesses, which it acquired in 2005, to create BT iNet, offering specialist LAN, IP telephony (IPT), wireless networking, managed services and security services to corporates and the public sector.

The iNet subsidiary started operation in June and will “enhance BT’s capabilities in the UK’s LAN and convergent solutions market,” said the firm. BT added that the merger would enable tighter integration with BT’s range of IP systems and customers would benefit from wider choice.

INet’s main rivals in this market are Prime and Logicalis, said iNet’s managing director, Dave Carrington. “BT has set this up to fish in the corporate mid-market. Historically it’s where BT, Cable & Wireless and others haven’t really played particularly effectively because their processes just don’t adapt to that marketplace. It’s an ever-changing environment and it’s one of the reasons we haven’t been integrated into BT and have been kept outside as a wholly owned subsidiary,” he added.

Carrington said SkyNet had specialised in IPT LAN, education, government and corporate mid-market, and its salespeople were assigned to particular sectors and focused on Cisco-only systems.

BT acquired TNS primarily for its maintenance and services capabilities. “SkyNet was just developing a similar offering whereas TNS had been concentrating on this for a number of years, so this was a powerful partner. It sounded like a proposition already made to go to market – and I wish it was that simple, because I’m having to integrate them both,” said Carrington.