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Thursday, March 22, 2007

Virgin Media may buy Pipex

The Telegraph has reported that Virgin Media is emerging as an unexpected frontrunner to buy Pipex.

Pipex, which offers home and business broadband and broadband/phone bundles, is up for sale at £335 million. The Telegraph also said that BT Group is thought to be interested.

Pipex is an LLU, or local loop unbundler - meaning it has got its own equipment in exchanges. This means that it can provide faster broadband and eventually TV and other services.

From Virgin Media's point of view, ownership of Pipex would immediately provide a way of getting Virgin Media TV, broadband and phone combinations into many more homes. Cable broadband is unavailable in many areas of the UK (particularly rural and semi rural areas) which has cut off a large potential market. (Although you can get broadband via ADSL from Virgin - thanks to what was Virgin Net - the attractive Virgin Media bundles, including their much-heralded 4 for £40 bundle, are currently delivered via cable).

Watching TV at the moment, it seems as if every other advert is for Sky or Virgin Media as they battle it out to be the bundle provider of choice, with Sky offering broadband, TV and phone for £26 a month (plus line rental to BT), and Virgin Media offering a range of bundles including their famous 3 for £30 broadband, phone and TV package.

If you can't wait for the outcome of the "who buys Pipex?" saga then check out the bundles page on my UK broadband comparison website now.

Of course what this means for The Hoff, who knows...

By Sarah, at UK Broadband Finder

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