Feeds

Pipex to kick off LLU migration

Let's be careful out there

Next gen security for virtualised datacentres

Pipex is to begin shunting punters onto unbundled exchanges from this month as it looks to cash in on its investment in local loop unbundling (LLU). The UK ISP had already revealed plans to install its kit in 100 BT phone exchanges, enabling it to provide broadband services direct to end users.

Now it's in a position to begin migrating customers, although such a move is not without risk.

Wanadoo UK, for example, is already moving its broadband users onto LLU exchanges, but a number of connections are failing, leaving customers without broadband for weeks on end. Wanadoo's line on these snags is that LLU is a "new and complex technology" and faults happen from time to time.

The latest LLU update from Pipex comes as the ISP revealed that a jump in broadband customers last year helped increase revenues and pre-tax profit during 2005.

Publishing results for the 12 months to the end of December, Pipex revealed that turnover hopped 30 per cent higher to £133m from £102m. Over the same period, pre-tax profit rose from £6.2m to £7.1m.

As of the end of December, the number of broadband users hit 283,000 - up 47 per cent on the year. At the same time, average revenue per user (ARPU) fell from £25 a month to £23 reflecting a fall in broadband pricing. In a bid to combat this drop, Pipex is trying to flog more and more services and is already lining up voice calls and wholesale line rental (WLR) as alternatives.

"We believe that the sale of these bundled services will increase average revenues per customer over the year and help protect margins," the firm said today.

Indeed, Pipex's recent acquisition of Homecall (the fixed line telecoms business of Caudwell Communications) for £43m reveals that, of the 500,000 new punters it acquired, 35,000 take more than one service.

Indeed, following the acquisition of Homecall, Pipex now has more than a million punters (including 390,000 broadband users) with three in ten taking two or more services.

The publication of today's results coincided with the news that Pipex has received a cash injection of $25m from Intel to launch Pipex Wireless, a new operation that is to roll-out the ISP's WiMAX service. ®

The essential guide to IT transformation

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
EE: STILL Blighty's best mobe network, says 'Frappucino' Moore
Fresh round of network stats fisticuffs possibly on the cards here
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Tech city types developing 'Google Glass for the blind' app
An app and service where other people 'see' for you
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
What's the nature of your emergency, Vodafone?
Oh, you've dialled the wrong number for ad fibs, rules ASA
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.