17/07/2007

Tiscali to buy Pipex

UK broadband consilidation continues with the acquisition of Pipex's fixed voice and broadband assets going to Tiscali (assuming it gains the approval of Pipex's shareholders and the UK OFT). This will add around 570,000 consumers and 100,000 business broadband customers. Tiscali will pay around £210m.

It looks like Pipex will maintain their hosting business (though it's a good guess they'll sell that off too) and Pipex Wireless who are starting to offer WiMAX based services (with a £21m injection from Intel).

Though Pipex Wireless are rolling out wireless services, they are ripe for a take-over and they may fetch as much as the fixed line assets of Pipex. Wireless is seen as the only real contender to fight BT's last mile hold. Pipex initially zero rated their wireless license on their books when they acquired Firstnet who also acquired the license from another operator. They must now be laughing all the way to the bank.
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