[3/24/07] If Fleet Street rumors are correct, BSkyB will be involved in a four-way battle for Pipex Communications, a major telco in the U.K. telecoms markets. Pipex has nearly 1.1 million fixed line customers and almost 600,000 broadband customers, plus a WiMAX licence and a Web-hosting operation, all of which make it an attractive acquisition target.

It was expected that BT, Carphone Warehouse, BSkyB and Virgin would all submit bids for the company ahead of a deadline set by UBS, which Pipex appointed earlier in the month to investigate strategic options including a possible sale of the company.

The bidding for Pipex seems to be heating up. Daniel Kervan, a media equity analyst at UBS, said in a research note released last week that "Virgin could see Pipex as a way to accelerate its off-net strategy. The price that Sky is prepared to offer is likely to reflect its ability to acquire customers organically at a relatively limited cost given its attractive pricing and triple play.”

Pipex is also particularly innovative in the WiMAX arena. Earlier this year, Pipex Wireless announced that it was launching a second commercial trial of its WiMAX services, working with National Grid Wireless, Warwick District Council and Intel Solutions Services. The trial will involve three sites in the Leamington Spa and Warwick area of the U.K., and will deliver products including, leased line replacement, VoIP, home workers broadband and dedicated broadband connectivity using WiMAX.

In December, Pipex Wireless announced that it was offering secure wireless broadband using WiMAX in the U.K., with the successful delivery of WiMAX services into Milton Keynes. The first trial customers were successfully connected to the WiMAX network in Milton Keynes.