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Virgin Media looking to acquire Pipex Broadband?

# 25 March 2007, 20:50 by Cable Forum

Virgin Media could be looking to expand its off-net (non-cable) capabilities via DSL according to a report in The Daily Telegraph. Expanding its own Virgin.net capabilities further into DSL would also allow another avenue to compete against bitter-rival Sky, who are agressively pushing their own DSL options.

Pipex, which came 10th in a recent Watchdog poll is understood to be soliciting bids via the investment bank UBS.

Virgin Media, who is also considering unbundling exchanges themselves, are also competing with BT (who have allegedly already made an approach), Carphone Warehouse, Orange, Tiscali, and of course Sky. Pipex have reported to have valued their company at £336m.

Another interesting aspect to purchasing Pipex, is that its only one of two providers to currently hold a WIMAX license, a scheme to deliver broadband via wireless wi-fi access. Purchasing Pipex would give the buyer the license without having to go through a costly auction process.

As of time of reporting, noone from Pipex, UBS, Virgin Media or BT has made a comment.

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