Pipex broadband deal collapse
April 17, 2007 by go broadband
The sale of the broadband provider Pipex is likely to collapse. Carphone Warehouse (who owns Talktalk broadband and AOL broadband) has quit the auction for Pipex, the £350 million internet services provider.
Remaining bidders for the broadband company are understood to include Tiscali the rival Italian-based broadband operator. BSkyB, Orange, BT and Virgin Media had pulled out early in the auction process.
However, with the share price of Pipex broadband internet group falling – since Carphonewarehouse announced it was going to pull out of the bidding for Pipex – other UK broadband providers may re-enter the auction; if the price of Pipex drops enough there is a market-share bargain to be had
Fierce competition in the UK broadband market and consolidation with the sector is likely to be the main reason Pipex is seeking an early exit from the market-place. If Pipex opts to continue as an independent player it will need to spend lots on advertising and keep lowering its broadband prices to remain competitive with the other broadband companies that can afford to subsidise their broadband offering from other parts of the their business.
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