News on 25 May
Just another utility

Commentators have long predicted that voice and data services will become as ubiquitous and commonplace as electricity supply. That day may have come nearer with the news that several major property companies are in discussions with telecoms suppliers to negotiate bulk-buying deals on behalf of tenants.

Discounts of up to 20 per cent have been mentioned, with the landlord taking a slice. Ian Womack, property advisor at Norwich Union, is quoted as saying: "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." Legal & General, Prudential, and MEPC have also been mentioned in this context.

However, a spokesperson for Norwich Union told i-FM that the impetus for any initiative had come from the telecoms suppliers and the idea was not being actively promoted by NU.

John Lane, a Director of Pagoda Consulting and responsible for its IT infrastructure division, has mixed feelings about the prospect of property companies offering telecoms services: "In the US, particularly on business parks, this is so common that it's unremarkable. Property depreciates to zero over 20 years because no one wants to move into an older building, so owners must make their money by offering better services. If this marks a move by property firms in the UK from deal-making to service then it must be a good thing.

"On the other hand, I doubt that they have the billing systems in place to handle the complexity of telecoms pricing. It may also be an unnecessary complication from the tenant's viewpoint. I'd rather property developers focused on making buildings 'IT-ready', with file server rooms, structured cabling and well-specified ducts for carriers."

Speaking for Citex, Stuart Black said that telecoms was becoming a commodity and that FM companies should certainly offer connectivity as part of their service: "Citex is doing this successfully in the far-East and FM companies will often be in a better position to provide additional services to tenants reluctant to buy from their landlord."


Richard Byatt

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