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Pipex to invest in LLU

'Compelling opportunity'

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The smart choice: opportunity from uncertainty

Pipex is to invest in local loop unbundling (LLU), describing it as a "compelling opportunity" for the broadband ISP.

With more than 215,000 broadband users, Pipex now has enough users concentrated in some areas of the UK to make it commercially viable to install its own kit in BT exchanges.

Instead of reselling DSL services from BT Wholesale, Pipex will be able to provide broadband services direct to end users.

"Given the number of broadband customers that Pipex now has, we have identified over 60 exchanges that have sufficient customer density to make strategic LLU very attractive," the ISP said in a trading update today.

The investment will pay for itself in less than two years, the company reckons.

Elsewhere, Pipex announced that sales are up 46 per cent on the same period last year with the total number of punters now in excess of 500,000.

"The first half has seen a solid performance with good growth across our broadband, hosting and network divisions," said chairman Peter Dubens.

"We are very pleased that the broadband division now has significant customer density around a number of exchanges, making strategic local loop unbundling a compelling opportunity for us." ®

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