Local loop unbundling for local people...
By Jo Best
Published: 19 October 2005 15:10 GMT
The UK broadband market is witnessing further consolidation following the news that Pipex is to buy Freedom2Surf.
The £10m deal will see Pipex add an additional 40,000 customers to its existing base of 210,000. As well as snapping up additional customers, Pipex will take ownership of cash reserves of £1.2m.
According to Pipex, the post-acquisition entity is now the UK's fifth largest supplier of broadband services over DSL.
The acquisition is likely to be a boon to Pipex in the local loop unbundling (LLU) arena. Mike Read, CEO of Pipex, said the geographical distribution of the newly added Freedom2Surf customers will make any further investment in LLU more financially viable.
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