Cable & Wireless plc
| Company type | Public limited company |
|---|---|
| Industry | Telecommunications |
| Founded | 1869 |
| Founder | Sir John Pender |
| Defunct | 2012 |
| Fate | Split into Cable & Wireless Communications and Cable & Wireless Worldwide; latter acquired by Vodafone |
| Headquarters | United Kingdom , United Kingdom |
Area served | United Kingdom, Caribbean, British South Atlantic territories, international markets |
Key people | John Pluthero (last known CEO) |
| Products | Telephone services, cable television services, internet services, telecommunications infrastructure |
Cable & Wireless plc was a telecommunications company based in the United Kingdom. In the mid-1980s, it became the pioneer UK enterprise to offer an alternative telephone service to British Telecom via its subsidiary, Mercury Communications. The firm later ventured into providing cable television services but divested these assets to NTL in 2000. It continued to hold a significant position in the UK telecom sector as well as in international markets, especially within former British territories in the Caribbean, where it maintained monopoly status. Additionally, it served as the main communications provider for the British South Atlantic territories, including Saint Helena and the Falkland Islands. Cable & Wireless was publicly traded on the London Stock Exchange and was a constituent of the FTSE 100 Index.
In March 2010, Cable & Wireless underwent a corporate split: its international operations separated to create Cable & Wireless Communications, which was acquired by Liberty Global in 2015 and subsequently spun off in 2018 as Liberty Latin America. The remaining segment was rebranded as Cable & Wireless Worldwide, which Vodafone acquired in 2012.
1860 to 1901
The origins of Cable and Wireless trace back to various British telegraph companies established during the 1860s, with Sir John Pender playing a foundational role. In 1869, Pender founded both the Falmouth, Malta, Gibraltar Telegraph Company and the British Indian Submarine Telegraph Company, connecting Britain with the Anglo-Mediterranean cable system and India. By 1872, these enterprises merged with the Marseilles, Algiers and Malta Telegraph Company, forming the Eastern Telegraph Company, over which Pender presided.
Within fifteen years, the Eastern Telegraph Company's cable network expanded from an initial 8,860 miles to 22,400 miles. It acquired additional firms linking regions such as the West Indies and South America, including the Eastern Extension Australasia and China Telegraph Company, prompting a rebranding to The Eastern and Associated Telegraph Companies in 1902.
1901 to 2001
During World War I, control over all cable operations shifted to the British government. The Eastern Telegraph group gained from redirected traffic away from German-controlled routes and an increased volume of telegrams. Cables became critical strategic resources; British forces severed German transatlantic cables while German forces targeted stations across the Pacific and Indian Oceans. After the United States entered the war in 1917, Britain confiscated a German cable connecting New York and Emden, which was renamed Imperial Cable by 1920.
In response to competition from radio firms such as Marconi's Wireless Telegraph Company, communications within the British Empire were consolidated in 1928 under Imperial and International Communications Ltd, which was renamed Cable and Wireless Limited in 1934. Regional communications were managed by subsidiaries like the Indian Radio and Cable Communications Company.
World War II reignited conflicts over cable infrastructure; British forces cut German and Italian cables. The company’s headquarters at Electra House suffered bombing damage in 1941. Cable & Wireless played a vital role supporting Allied military campaigns by providing wireless equipment for operations in North Africa and Italy.
Following nationalisation under the Labour government in 1947, UK-based assets merged into the General Post Office, while overseas operations remained under Cable & Wireless ownership.
Privatisation commenced during Margaret Thatcher’s Conservative administration beginning in 1980. In November 1981, half of Cable & Wireless’s shares were offered publicly. The establishment of Mercury Communications Ltd as a subsidiary occurred in 1982 to challenge British Telecom’s dominance.
Leveraging advances in optical fiber technology and deregulation trends in the US during 1986, Cable & Wireless expanded into long-distance telecommunications there by acquiring transmission capacity along Amtrak routes and serving early clients such as TDX Systems, innovators of advanced telephone switching technology.
In 1997, Mercury merged with UK-based cable operators including Vidéotron, Nynex, and Bell Cablemedia to create Cable & Wireless Communications. That same year, Cable & Wireless secured a 49% ownership stake in Panama’s state-run INTEL for US$652 million, becoming Panama’s largest telecommunications provider.
Following MCI-WorldCom’s merger in 1998, Cable & Wireless USA acquired MCI’s tier 1 Internet backbone network, broadening its reach beyond traditional long-distance telephony. In 1999, it invested heavily in global IP/MPLS networks targeting corporate customers and purchased Japanese company IDC (International Digital Communications), rebranding it as Cable & Wireless IDC Inc.
In July 1999, NTL purchased Cable & Wireless’s consumer business for approximately £8.2 billion, integrating telephone, internet, and television services. Subsequently, between 1999 and 2000, Cable & Wireless expanded across Europe through acquisitions of multiple ISPs and companies operating in Austria, France, Germany, The Netherlands, Belgium, Italy, Spain, Switzerland, Sweden, and Ireland—forming Cable & Wireless Europe. To further enhance its portfolio of services, it acquired Hyperlink-Interactive in December 2000.
2001 to 2013
In 2001, Cable and Wireless divested its 52.5% ownership in Cable and Wireless Optus, the second-largest telecommunications provider in Australia, selling it to SingTel in one of the nation's most significant corporate transactions.
Later that year, in November 2001, Cable and Wireless acquired the insolvent co-location firm Exodus Communications for US$800 million and merged it with Digital Island to establish Cable and Wireless America. By May 2002, the company had purchased Guernsey Telecoms from the States of Guernsey. Subsequently, Cable & Wireless withdrew from the US corporate market by divesting its operations to Primus Telecom. In March 2004, SAVVIS Communications acquired Cable and Wireless America for US$155 million, taking over critical assets including the former MCI IP backbone.
August 2005 saw Cable & Wireless complete the acquisition of Energis for £674 million, prompting a leadership change as John Pluthero from Energis assumed management of the UK division. That December, the company voluntarily removed its American depositary receipts from the New York Stock Exchange.
During early 2007, Cable & Wireless sold off its UK government-oriented internet systems division, the Web Technology Group, along with its cabling subsidiary Allnet. In October 2008, it finalized the purchase of Thus plc, subsequently rebranding it as "Thus, a Cable & Wireless business".
In November 2009, Cable and Wireless plc declared intentions to separate its Communications Group from its Worldwide Group to enhance shareholder value. On 26 March 2010, Cable & Wireless Communications was demerged and became an independently listed entity on the London Stock Exchange, while Cable & Wireless plc was renamed Cable & Wireless Worldwide.
On 23 April 2012, Vodafone announced its agreement to acquire Cable & Wireless Worldwide for £1.04 billion. The acquisition was completed on 30 July 2012, with full integration into Vodafone finalized by 1 April 2013.