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09.08.06
Pipex Cages Toucan And Bulldog
 By David A. Utter
The online services provider has made a couple of acquisitions to bolster its broadband userbase.
Pipex expanded its broadband customer base by purchasing Toucan, a UK telecommunications provider, for £24m ($45.3m) from IDT Telecom.
The consideration will be satisfied by £20m in cash and £4m in stock, Pipex said in a statement.
"Currently, Toucan provides voice, mobile and Broadband Services to its 185,000 customers. With 57% taking more than 2 services, Toucan delivers an average ARPU of £23," according to Pipex.
IDT Telecom owned Toucan before the Pipex deal. According to Pipex chairman Peter Dubens, Toucan will enhance the Pipex product offering:
"Importantly, this acquisition will enable Pipex to provide triple play in the UK market by the end of 2007. Broadband, voice and mobile will be bundled and offered to our entire base in the coming months."
Pipex also scaled up its broadband base with the £12m ($22.6m) cash purchase of Cable & Wireless's Bulldog business.
This gives Pipex both the residential and small enterprise broadband customers previously held by C&W's Bulldog:
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This acquisition brings the total broadband and voice customer base to 1,140,000 of which those taking broadband now exceeds 500,000. 90% of Bulldog's 110,000 customers subscribe to a Broadband, voice and wholesale line rental package, which delivers an ARPU of £34 per month.
Pipex also signed up to use Cable & Wireless' unbundled local loop (LLU) access network, which will cover 800 exchanges, their statement noted.
The Bulldog acquisition brings the total broadband and voice customer base to 1,140,000 of which those taking broadband now exceeds 500,000.
To keep that customer base happy, it may take more than just brisk speeds. A survey by Broadband4Britain and Net.com found users want better service, with many willing to "pay more to get more":
Millions of pounds worth of marketing spend of the ‘Boy, it's fast' variety may be falling well short of the mark.
The survey results show that almost 80% of actual and potential broadband customers would like a service that guarantees a minimum bandwidth performance level. The very good news is that 68% of those would be willing to pay a premium for that service.
About the
Author:
David Utter is a staff writer for WebProNews covering technology and business.
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