Pipex claim home broadband growth is limited
23rd July 2007
Pipex who recently sold their voice and broadband operation to Tiscali, have publicly stated that they do not expect to see much more growth in the home broadband market due to increased competition between broadband providers and the UK’s declining broadband adoption rate.
The company has said it no longer wants to pay out more for customer acquisitions because it will erode their margins and limit the company’s potential to increase profits.
It is understood that Tiscali has the option to pull out of buying Pipex if Pipex’s customer base falls by more than 20% by the end of August 2007. These numbers are expected to be independently verified.
Pipex is expected to operate as a brand name for approximately two years after Tiscali has purchased the company (expected to be fulfilled in September 2007).
Analysts predict that Tiscali’s acquisition of Pipex will help it widen its lead over Orange and will give BT, Virgin Media and Carphone Warehouse (AOL and TalkTalk) greater competition. Tiscali will have a 15% share of the broadband market once the Pipex purchase is closed.
Member of the Internet Services Providers' Association
Member of the Broadband Stakeholder Group
2 comments
pipex uptill now you have been a good isp and iv never had down time i just hope that when pipex is sold that the new isp will be as good i can not see it been better but you never know time will tell good luck pipex and thank you for being a good isp royben
royben, 13th August 2007
Well I have been a broadband user for over 5 years and always had good service till I joined Pipex. In the 10 months I have been with them I have had constant problems with staying on line and have just been charged £66 for last month supposedly for over usage. Needless to say I am in the process of changing my internet provider.
Star, 16th September 2007