CWC.L Share News (CWC)

(Adds CEO comments, shares)

By Paul Sandle

LONDON, May 21 (Reuters) - Cable & Wireless Communications said on Wednesday it would step up investment in itsnetworks in the Caribbean and Central America in a bid to returnto revenue growth and improve earnings.

The fixed and mobile operator unveiled its new strategyafter posting a better-than-expected 5 percent increase infull-year core earnings to $608 million on like-for-like revenueof $1.87 billion, down 1 percent.

The British company said it would increase capitalinvestments by $250 million over the next three years, taking total capex spending to $1.05 billion.

Chief Executive Phil Bentley, who joined C&W from Centrica's British Gas in January, said the investment woulddeliver "modest" top line growth, reversing a historicaldecline, and mid-to-high single digit compound annual growth inearnings.

He said the business was "not operating at its fullpotential", and there was room for improvement in areas likecustomer service and broadband.

Investment will go into mobile, he said, and also intointegrating its fixed and mobile networks so customers canseamlessly switch between wifi and superfast 4G mobile.

"We will put more money in the networks that talk to eachother, the fixed and the mobile, so we can direct customers tothe best experience," he said in an interview.

C&W has sold off operations in territories such as Macau andthe Channel Islands. The final stage of its disposal programme,Monaco, completed on Tuesday, providing $445 million of extracash for investment.

Shares in C&W were broadly flat at 54.3 pence at 0920 GMT. (editing by Kate Holton)