iomart mops up OnCue's punters
Failed broadband provider sells off customers cheap
Scottish broadband outfit iomart has paid £200,000 to acquire more than 600 business DSL customers from failed start-up, OnCue Telecommunications Ltd.
iomart claims the acquisition of OnCue's customer base will add around £1 million a year to its revenue.
It also claims this makes it the second largest DSL operator in the UK, behind BTopenworld.
OnCue called in the liquidators last week after failing to raise additional cash from its backers which included Soros Private Equity Partners, Madison Dearborn Private Equity Partners and T D Capital.
Some 130 people are set to lose their jobs because of the company's collapse.
iomart reported that OnCue customers should be migrated across to its service over the next fortnight or so. It's hoped there will be no interruption to service.
Angus MacSween, iomart CEO, said: "This is an excellent piece of business for iomart; it is a good price and keeps us at the forefront of ADSL delivery in the UK.
"However the demise of OnCue highlights the ongoing difficulties of rolling out broadband Britain under the current regulatory and competitive environment," he said. ®