25/04/2005

One.Tel hoovers up RedNet for �5m | The Register

One.Tel hoovers up RedNet for �5m | The Register

Centrica are on an acquisition spree, it's likely there will be more to follow.

Centrica were looking at getting out of the voice business, but it looks like they've decided trying to sell it wouldn't work in the current climate, so put money into One.tel instead.

Rumours are they have between £200m - £300m to spend on building up the business.

They will need to diversify as voice revenues will continue to decline as the UK moves to flat rate UK dial-plans with pressure from CPS (carrier pre select) and VoIP suppliers. It's likely BT will also consider flat-rate telephony once they introduce their 21CN network, as moving a packet between exchanges doesn't really alter costs depending on their distance (it's probably too hard to bill too, and they'll just include UK voice with the line rental).

Unfortunately the telco business is not a good business to be in now (or won't be shortly) so telcos who just rely on voice minutes aren't going to be in business for too long and need to diversify and offer other services that can generate revenue.
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