Geo Networks Limited (“Geo”), a leading provider of high-performance fibre networks for demanding data users, today expanded its fast-growing data centre community, announcing a significant deal with London Data Exchange (“LDeX”). The move sees Geo providing ‘open-access’ connectivity into LDeX’s new, state-of-the art data centre.

LDeX1 is the latest addition to Geo’s growing community of over 100 data centres and telehouses connected to its wider 3,000km fibre network. Exploiting the resilience of the UK’s high pressure gas pipelines and unique routing up to 15m below ground through the London sewer system, users benefit from the highest level of security and network availability to underpin their mission critical operations.

Matt Edgley, Director of Sales and Marketing at London Data Exchange comments, “Geo’s open-access connectivity model means a full spectrum of carriers and service providers may use the new infrastructure. Our clients will benefit from a wide range of connectivity solutions from high-end, dedicated-fibre based networks to internet bandwidth connectivity.”

Situated in North London (NW2) in close proximity to the M1, the purpose-built, carbon-neutral data centre is one of a handful of new facilities launching in the wider London area this year. Geo’s high speed, low latency network will connect to LDeX’s newly refurbished 22,000 sq. ft building. The facility caters for up to 400 server racks safeguarded by N+N power protection, diesel generation, extensive security and fire protection systems and 24×7 access and support facilities.

“With more customers moving operations to IT-based environments, data centres are quickly becoming a critical component to business operations, as are the communication networks that support them,” said Chris Smedley, Chief Executive at Geo. “As part of our on-going expansion programme this year Geo has added one major data centre per month to its growing list of connected sites including the LDeX1 facility which ideally complements our existing connections in London, the South East and Manchester. We are well placed to meet data centre owners’ high-performance network needs as well as being able to offer our customers suitable and reliable infrastructure into these facilities.”

The awards ceremony was hosted at Wembley Stadium last night, in front of a wide audience of Gaming professionals.

Andy Tipping, Sales Director of Geo’s Online division, was there to collect the award. “It’s a huge accolade to be recognised as Vendor of the Year to this technology-driven sector. Geo is significantly gathering momentum in the market as companies are quick to see the benefits of their own secure, dedicated fibre infrastructure. Congratulations to all of the winners and nominees and a big thank you to eGaming Review.”

Last year, Geo announced its debut customer in the Gaming sector, bet365, after having won a contract to provide a national network, and this award comes just weeks after Geo announced its second major Gaming customer Betfair.

The company owns the newest, 3,000km national optical fibre network, connecting over 100 data centres and exchanges. Uniquely, every customer receives its own dedicated fibre, assuring optimum security and lowest latency. In addition, each fibre network is capable of scaling up to terabit capacity, catering for even the highest peaks in web traffic.

A recent Global Innovation Report found Ireland to be the easiest country in Europe and the 6th easiest in the world in which to pay business taxes. So, in Spring 2012 a new law in Ireland will be presented to the Government to address the potential losses by the exchequer. Have the Irish and UK governments realised how much revenue and how many jobs are being lost because of ‘tax havens’ elsewhere?

If they have, both Governments can utilise development grants to encourage companies to move, as the Irish have recently for Google. Whilst encouraging new hubs of business, they must consider the availability of capacity between the two countries, for transmission of critical data. Is the current set-up sufficient for data-intense businesses to work seamlessly from an offshore location? And does the current capacity adequately protect customers against loss of data and personal information?

I’m regularly talking to the Gaming community about how Geo can assist with this with the investment made to link the two countries together. Our diverse fibre links gives those companies with Irish and UK offices or data centres confidence to move and grow their online gambling base. Security and capacity are assured when a company owns its own dedicated fibre network. With major links to many UK data centres and a high reputation for service and network reliability, Geo is positioned to support and manage any company that decides to relocate.

Perhaps both the Irish and UK Governments will realise the amount of revenues they are losing – how long before the remaining providers ‘move away’ where incentives exist be it regulatory, economic or profit.

Follow me on Twitter: @GeoNetworksAndy

So what is the motivation for this acquisition by Vodafone? Well it might be the fact that as widely reported much of the £1bn can in fact be offset against Vodafone’s sizeable UK tax bill, or maybe it’s the 20,000km+ of fibre optic cables in the UK, allowing VF to decrease costs and reduce its reliance on BT and other operators, or it could of course be the immediate access to CWW corporate customer base, global networks, data centres?

The truth is of course, that it will probably be all of the above! The tax write offs make it more palatable and a pretty big incentive to “sort out” many of the historic issues that have recently constrained CWW such as mergers, slashed headcount, and the dropping of smaller SME customers in favour of the larger blue chip companies. Since its split from C&W Communication in 2010 there has been little good news for CWW, with many of the headlines focussing on executive pay-outs (£88m in cash bonuses to board members), poor strategy decisions and network and system integration issues – even still from previous major acquisitions such as Energis and Thus!

With the departure of Jim Marsh and John Pluthero and the arrival of Gavin Derby from, yes you guessed it Vodafone, there has been anticipation that rather than attempt to turn the business around, Mr Derby would instead be looking for a suitable buyer and the opportunity to pull off a genuine coup in so doing potentially boosting share value by more than 50%!

There is of course the question as to what Vodafone will be buying? Much of CWW national and international revenue comes from wholesale voice and data customers – not previously an area of interest for Vodafone. However according to Barclays Capital, CWW does have contracts with 70 of the 100 largest blue chip companies, as well as the BBC and government departments such as the Foreign and Commonwealth Office. This is of course of great interest to Vodafone and particularly to Nick Jeffery – Chief Executive Officer of Vodafone’s Global Enterprise business. Much of the CWW business will fall into Nick Jeffery’s empire – as an “old boy” of Mercury and C&W Nick is very familiar with the underlying business – both the good and the bad and will I’m sure relish the opportunity to use the Vodafone brand and resources to breathe new life into the fixed line business, that is such an important part of his long term strategy.

From a market perspective it is not yet really clear how things will play out both from a retail or wholesale perspective… Clearly those carriers currently selling services to Vodafone will be checking any overlap with what C&W might bring to the table in terms of network or services. C&W does have an extensive network asset but they also have a significant lease estate – particularly built around unbundled BT exchanges (LLU). This of course gives Vodafone a sizable additional opex bill – but also provides excellent reach and low cost base for enterprise customers and potentially for mobile backhaul solutions. Here at Geo we take the view that consolidation is a positive force and ultimately drives greater demand for facilities and high quality infrastructure solutions – something we pride ourselves on delivering to enterprise and wholesale customers in the UK.

Of course many questions relating to this purchase remain unanswered – what strategy will Vodafone employ in regard to existing wholesale customers, what about the UK assets and lease network and of course the sizable international voice trading element? But with wholesale telecoms in his DNA, I’m sure Nick Jeffery will have a strategy for maximising the return from this acquisition and in so doing drive up share sales and share value. Time will tell – it will be interesting to watch how this saga unfolds over the coming weeks and months….

Finalists for each category will be announced in June, however customers of ISPs listed in the Customer Choice category can already vote for their ISP and win two tickets to the black-tie event.

To see if your ISP has been entered please click here.

We are also pleased to announce that our own Will Pitt, Media and Broadcast Director will be speaking alongside Rory Murphy, Content & Digital Media Director at Equinix and discussing the future of media distribution networks on Day 1 of the event.

To see the full agenda and register to attend, please click here.

The awards take place on Thursday May 10th at Wembley Stadium, keep your fingers crossed for us.

To find out more please visit the IMN website or drop us a line if you would like to get in touch with our team who are attending.