Pipex in £12m Cable and Wireless deal

The UK’s Pipex Group has paid £12m to boost its broadband customer base, by buying 118,000 residential and small business customers from Cable and Wireless’ Bulldog arm.

Separately, Pipex has signed up to use Cable and Wireless’ unbundled local loop (LLU) access network, which will cover 800 exchanges. Pipex uses a hybrid network – a mixture of its own Local Loop Unbundling footprint and wholesale.

According to a statement posted on Bulldog’s website, the acquisition puts Pipex’ broadband and voice customer base at 1,140,000. More than 500,000 have broadband, the company said. According to the statement “90 per cent of Bulldog’s 110,000 customers subscribe to a Broadband, voice and wholesale line rental package, which delivers an ARPU of £34 per month.”

Peter Dubens, chairman of Pipex said: “The acquisition of Bulldog brings further scale to the Pipex Group and we are delighted to welcome all the Bulldog customers. Cable & Wireless is a good addition to our supplier mix and going forward this relationship will add breadth to the choice of services that we are able to offer to all of our customers.”

Pipex also announced that it would buy the UK’s Toucan phone service business for £24m ($45m) in cash and stock. In a statement IDT said it expects to enter into certain commercial agreements with Pipex to continue providing international termination for the Toucan operation and customer support.