Kingston Communications
Encyclopedia
KCOM Group formerly known as Kingston Communications, is a UK communications and IT services provider. Its headquarters is in Kingston upon Hull
, East Riding of Yorkshire
, where subsidiary business unit KC serves local residents and businesses with Internet and telephony services. It is listed on the London Stock Exchange
and is a constituent of the FTSE 250 Index
.
) was granted a licence under the Telegraph Act 1899
to operate a municipal telephone system in the Kingston upon Hull area, opening its first telephone exchange in 1904 at the former Trippett Street Baths.
At the time, there were a number of such municipal telephone companies around the UK, all of which – with the exception of the one in Hull – were gradually absorbed into the Post Office Telephone department, which was subsequently to become British Telecom (BT).
Hull's bid to renew its licence in 1914 was made conditional on the £192,000 purchase of National Telephone networks infrastructure. The council gave its approval, securing the future of the country's only remaining municipally owned telephone corporation.
Hull has therefore remained an exception within the UK telephone network, being the only place in the UK not served by BT and is noted for its distinctive cream coloured telephone boxes and innovative services, for example becoming the UK's first fully digital network in 1989 using Marconi
System X
telephone switches (Central Offices or Class 5 switches).
The Company was first listed on the London Stock Exchange
in 1999.
In the early part of the new millennium, the company started to pioneer services such as ADSL, Video on Demand
and Digital TV. In February 2006, it announced that it would be ceasing its Video on Demand and Digital TV services (called Kingston Interactive TV – KIT) on 1 April 2006.
In 2007, Kingston Communications changed its name to KCOM Group.
, its national Internet Service Provider.
KC's Hull operation covers a relatively small geographical area. Although it is under the same Ofcom
and EU obligations in terms of local loop unbundling
the market is relatively small and the economics generally do not justify entry by other companies.
A further complication for any would-be rival of KC is that in Hull the first 1 km of wire from the exchange has a cross-section of 0.3 mm sq, as opposed to the standard 0.5 mm sq, requiring a more expensive DSLAM in the telephone exchange for providing an ADSL service.
As residents and most businesses in Hull are served only with telecoms services by KC, some service users are unhappy with the monopoly position KC has in the Hull area.
The main concern is that of Internet service provision; KC's Karoo
service is the only residential broadband
operator in the Hull area. According to a decision from the European Commission in 2004, KCOM Group PLC (“Kingston”) have a 100% market share in the wholesale market of broadband services in the Hull area. Considerations include concerns over KC's acceptable use policy
, the cost of the service and the inability to use other providers.
In December 2005, Giacom, the owner of Hull24 – a rival broadband provider in the Hull area – complained to Ofcom
regarding the provision of network access to KC's rivals. The complaint is that "Giacom alleges that Kingston is not providing [network] access on reasonable terms as Kingston's pricing is anti-competitive and prohibitive to service providers [other than KC]". In April 2006 Giacom and KC resumed negotiations on a deal to allow Hull24 to use KC's network; as a result Giacom withdrew its complaint and Ofcom has closed the case.
In August 2007 the alleged monopoly of KC was referred to the European Commission
by Yorkshire and Humber
MEP
Diana Wallis
.
In May 2008, the "Review of the wholesale broadband access markets" report published by Ofcom
determined that KC was not acting in a way that would keep out rival companies, and that pricing for wholesale broadband and access to local-loop unbundling was within the market range. The main reason cited by rivals for not providing services in the Hull area was rather one of overall cost effectiveness, given the relatively small number of potential customers (190,000 homes), and the fact that many of these would be likely to remain with the incumbent supplier.
In July 2009, Nexus Telecom signed an agreement with KC enabling them to offer effective wholesale line rental and call tariffs to business consumers within the Hull area so giving them a choice of service provider.
association football club and Hull FC, one of the city's two rugby league
teams, is sponsored by and named after KC - the KC Stadium
. Kingston Communications was the shirt sponsor for Hull City for the 2007–08 and 2008–09 seasons. "Karoo" appeared on the home (amber) shirts and "Kingston Communications" featured on the away (white) kit.
The company also sponsors the name of the local radio station KCFM
99.8 which broadcasts live coverage of the sporting events from the stadium, but they do not own the station.
Kingston upon Hull
Kingston upon Hull , usually referred to as Hull, is a city and unitary authority area in the ceremonial county of the East Riding of Yorkshire, England. It stands on the River Hull at its junction with the Humber estuary, 25 miles inland from the North Sea. Hull has a resident population of...
, East Riding of Yorkshire
East Riding of Yorkshire
The East Riding of Yorkshire, or simply East Yorkshire, is a local government district with unitary authority status, and a ceremonial county of England. For ceremonial purposes the county also includes the city of Kingston upon Hull, which is a separate unitary authority...
, where subsidiary business unit KC serves local residents and businesses with Internet and telephony services. It is listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is a constituent of the FTSE 250 Index
FTSE 250 Index
The FTSE 250 Index is a capitalisation-weighted index consisting of the 101st to the 350th largest companies on the London Stock Exchange. Promotions to and demotions from the index take place quarterly in March, June, September and December...
.
History
On 22 August 1902, Hull Corporation (which later became Hull City CouncilHull City Council
Hull City Council is the governing body for the unitary authority and city of Kingston upon Hull. It was created in 1972 as the successor to the Corporation of Hull, which was also known as Hull Corporation....
) was granted a licence under the Telegraph Act 1899
Telegraph Act 1899
The Telegraph Act 1899 is an Act of Parliament in the United Kingdom that allowed urban district, borough and burgh councils to construct and operate telephone exchanges, on a similar basis the then-usual municipal provision of other utilities....
to operate a municipal telephone system in the Kingston upon Hull area, opening its first telephone exchange in 1904 at the former Trippett Street Baths.
At the time, there were a number of such municipal telephone companies around the UK, all of which – with the exception of the one in Hull – were gradually absorbed into the Post Office Telephone department, which was subsequently to become British Telecom (BT).
Hull's bid to renew its licence in 1914 was made conditional on the £192,000 purchase of National Telephone networks infrastructure. The council gave its approval, securing the future of the country's only remaining municipally owned telephone corporation.
Hull has therefore remained an exception within the UK telephone network, being the only place in the UK not served by BT and is noted for its distinctive cream coloured telephone boxes and innovative services, for example becoming the UK's first fully digital network in 1989 using Marconi
Marconi Communications
Marconi Communications was a principal subsidiary of the Marconi Corporation plc and was formerly known as GEC Plessey Telecommunications . The company was a world leading telecommunications manufacturer...
System X
System X (telephony)
System X was the name of the UK's first national digital telephone exchange system.-Development:System X was developed by the UK Post Office , GEC, Plessey, and Standard Telephones and Cables and first shown in public in 1979 at the Telecom 79 exhibition in Geneva Switzerland...
telephone switches (Central Offices or Class 5 switches).
The Company was first listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
in 1999.
In the early part of the new millennium, the company started to pioneer services such as ADSL, Video on Demand
Video on demand
Video on Demand or Audio and Video On Demand are systems which allow users to select and watch/listen to video or audio content on demand...
and Digital TV. In February 2006, it announced that it would be ceasing its Video on Demand and Digital TV services (called Kingston Interactive TV – KIT) on 1 April 2006.
In 2007, Kingston Communications changed its name to KCOM Group.
Operations
The KCOM Group is now a group of companies including KC (formerly known as Kingston Communications), Kcom (formerly known as Affiniti), its business integration and services arm and EclipseEclipse Internet
Eclipse Internet is a UK Internet Service Provider based in Exeter, Devon. It is owned by Kingston Communications. It supplies ADSL and Dialup connections to the home user market. The company has services for the business market including SDSL and a Leased Line service...
, its national Internet Service Provider.
KC's Hull operation covers a relatively small geographical area. Although it is under the same Ofcom
Ofcom
Ofcom is the government-approved regulatory authority for the broadcasting and telecommunications industries in the United Kingdom. Ofcom was initially established by the Office of Communications Act 2002. It received its full authority from the Communications Act 2003...
and EU obligations in terms of local loop unbundling
Local loop unbundling
Local loop unbundling is the regulatory process of allowing multiple telecommunications operators to use connections from the telephone exchange to the customer's premises...
the market is relatively small and the economics generally do not justify entry by other companies.
A further complication for any would-be rival of KC is that in Hull the first 1 km of wire from the exchange has a cross-section of 0.3 mm sq, as opposed to the standard 0.5 mm sq, requiring a more expensive DSLAM in the telephone exchange for providing an ADSL service.
Monopoly concerns
The main concern is that of Internet service provision; KC's Karoo
Karoo ISP
Karoo is an Internet Service Provider in the United Kingdom. Formed in 1996 by Kingston Communications, a subsidiary of the KCOM Group, it primarily serves consumers in Kingston upon Hull and the surrounding area.- Service history :...
service is the only residential broadband
Broadband
The term broadband refers to a telecommunications signal or device of greater bandwidth, in some sense, than another standard or usual signal or device . Different criteria for "broad" have been applied in different contexts and at different times...
operator in the Hull area. According to a decision from the European Commission in 2004, KCOM Group PLC (“Kingston”) have a 100% market share in the wholesale market of broadband services in the Hull area. Considerations include concerns over KC's acceptable use policy
Acceptable use policy
An acceptable use policy is a set of rules applied by the owner/manager of a network, website or large computer system that restrict the ways in which the network site or system may be used...
, the cost of the service and the inability to use other providers.
In December 2005, Giacom, the owner of Hull24 – a rival broadband provider in the Hull area – complained to Ofcom
Ofcom
Ofcom is the government-approved regulatory authority for the broadcasting and telecommunications industries in the United Kingdom. Ofcom was initially established by the Office of Communications Act 2002. It received its full authority from the Communications Act 2003...
regarding the provision of network access to KC's rivals. The complaint is that "Giacom alleges that Kingston is not providing [network] access on reasonable terms as Kingston's pricing is anti-competitive and prohibitive to service providers [other than KC]". In April 2006 Giacom and KC resumed negotiations on a deal to allow Hull24 to use KC's network; as a result Giacom withdrew its complaint and Ofcom has closed the case.
In August 2007 the alleged monopoly of KC was referred to the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
by Yorkshire and Humber
Yorkshire and the Humber (European Parliament constituency)
Yorkshire and the Humber is a constituency of the European Parliament. It currently elects 6 MEPs using the d'Hondt method of party-list proportional representation.- Boundaries :...
MEP
Member of the European Parliament
A Member of the European Parliament is a person who has been elected to the European Parliament. The name of MEPs differ in different languages, with terms such as europarliamentarian or eurodeputy being common in Romance language-speaking areas.When the European Parliament was first established,...
Diana Wallis
Diana Wallis
Diana Paulette Wallis is a British Liberal Democrat politician who is a Member of the European Parliament for Yorkshire and the Humber. Wallis was first elected in 1999 and re-elected in 2004 and in 2009....
.
In May 2008, the "Review of the wholesale broadband access markets" report published by Ofcom
Ofcom
Ofcom is the government-approved regulatory authority for the broadcasting and telecommunications industries in the United Kingdom. Ofcom was initially established by the Office of Communications Act 2002. It received its full authority from the Communications Act 2003...
determined that KC was not acting in a way that would keep out rival companies, and that pricing for wholesale broadband and access to local-loop unbundling was within the market range. The main reason cited by rivals for not providing services in the Hull area was rather one of overall cost effectiveness, given the relatively small number of potential customers (190,000 homes), and the fact that many of these would be likely to remain with the incumbent supplier.
In July 2009, Nexus Telecom signed an agreement with KC enabling them to offer effective wholesale line rental and call tariffs to business consumers within the Hull area so giving them a choice of service provider.
Sports sponsorship
The ground shared by Hull CityHull City A.F.C.
Hull City Association Football Club is an English association football club based in Kingston upon Hull, East Riding of Yorkshire, founded in 1904. The club participates in the Football League Championship, the second tier of English football...
association football club and Hull FC, one of the city's two rugby league
Rugby league
Rugby league football, usually called rugby league, is a full contact sport played by two teams of thirteen players on a rectangular grass field. One of the two codes of rugby football, it originated in England in 1895 by a split from Rugby Football Union over paying players...
teams, is sponsored by and named after KC - the KC Stadium
KC Stadium
The KC Stadium, often shortened to the KC, is a multi-purpose facility in the city of Kingston upon Hull , England. Conceived as early as the late 1990s, it was completed in 2002 at a cost of approximately £44 million. It is named after the stadium's sponsors, telecommunications provider KC,...
. Kingston Communications was the shirt sponsor for Hull City for the 2007–08 and 2008–09 seasons. "Karoo" appeared on the home (amber) shirts and "Kingston Communications" featured on the away (white) kit.
The company also sponsors the name of the local radio station KCFM
KCFM
KCFM is an independent local radio station based in Hull, East Riding of Yorkshire, England. This new licence was advertised by Ofcom in 2006. It is owned by the Lincs FM Group-Background:...
99.8 which broadcasts live coverage of the sporting events from the stadium, but they do not own the station.