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Pipex Touts WiMAX & Growth

Posted: 14th Jul, 2006 By: MarkJ
Pipex has issued its latest preliminary trading update for the first half of 2006, highlighting a combined total of 832,000 broadband and voice customers. The ISP also revealed more information about its WiMAX progress:

Customers in the broadband and voice division now number 832,000, with 48% taking a service which includes broadband, a further 34% taking a line rental bundle and 18% with CPS voice only. Average revenue per user increased by 9% since the year end to £25, with the concerted push into bundled services more than offsetting market-driven pricing pressure in broadband.

The growth in hosting customers, up 23% from H1 2005, continues to correlate with growth in broadband penetration. Domain names grew by 26% to over 1.5 million domains.

Local Loop Unbundling (“LLU”)

Pipex’s local loop unbundling is progressing to plan. Of the 100 exchanges ordered, 43 have been unbundled since the process was started, and mass customer migration has commenced. In line with its “low-capex” business model, Pipex has implemented a policy of providing its services through a hybrid network. This means that Pipex provides a national broadband service by investing in unbundling exchanges where there is a compelling financial justification, while buying in third party wholesale where LLU returns are less certain.

Pipex Wireless (WiMAX)

Pipex Wireless Board is delighted to announce the appointment of Sean Stephenson as Chief Operating Officer of Pipex Wireless, the joint venture with Intel created in April 2006. Sean was previously founding Managing Director of Nildram, bought by Pipex in August 2004. Sean will oversee all the engineering and operational aspects of the venture.

Following successful technical trials, Pipex Wireless believes that the technology is now ready for commercial trial deployments and is in discussions with a number of Local Authorities over the choice of test sites. These are likely to comprise 3-5 base stations and will test live end-to-end services to customers in advance of the planned city roll-out in 2007.

Pipex Communications will announce interim results for six months ended 30 June 2006 on 7th September 2006.

Sadly no clear breakdown of subscriber numbers is offered, but we should know the precise number come September.
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