The upturn in local loop unbundling (LLU) has had the knock on effect of boosting Bulldog's value, with Investec raising its valuation from £50 million to £245 million.

Despite all the recent problems, Bulldog is seen as one of the UK's biggest investors in unbundled broadband xDSL and thus a chief recipient of any new customers. Tiscali and Wanadoo have also raised their game and may reap similar benefits.

The latest statistics show some 183,000 lines as being unbundled towards the end of December (up from 163,000 in November), suggesting a stable state of growth. 2006 will be a critical year indeed.