Virgin rumoured to snap up Pipex

Last week Pipex, said it had appointed investment bank UBS to search for buyers to take over their Broadband and telephone services; according to a number of reports, Virgin Media are said to be particularly keen in snapping up their ADSL network, a move which would help in strengthening the gains made by their cable Broadband service. Not only would a purchase add the existing Pipex subscribers (estimated at over half a million) to Virgin’s belt, but it would also supply the buyer with access to the myriad of WiMAX networks that Pipex had set up in conjunction with Intel – an attractive offer to any ISP with a mobile phone network.

The offer of a WiMAX infrastructure should also prove to be appealing for internet providers, as the wireless technology allows for a neat sidestepping of the troublesome ‘last mile’ problem of connecting individual customers to a network.

For these reasons, BT are also said to be interested in taking over Pipex, to consolidate its lead as the main Broadband provider in the country, simultaneously extending the coverage for its wireless Openzone network, and also to give a much-needed boost to its converged Wi-Fi mobile service, BT Fusion.

Recently, the two firms had together, along with digital TV broadcasters Top Up TV and Setanta, approached Ofcom to review the UK pay-TV market – a move seen as an attempt to break the perceived market stranglehold of Sky. Whilst presenting a united front on the TV market, these two companies could find themselves scrapping under the table over the remains of Pipex.

For the moment, this is all speculation – Virgin or BT haven’t made any official noises about this, and neither have Pipex.

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