BT HAS held talks with Pipex, the internet service provider, over plans to exploit WiMax, the super-fast wireless broadband technology, it emerged yesterday as the telecoms group played down the threat of local loop unbundling.
BT is understood to have discussed the possibility of acquiring Pipex’s WiMax licence — one of only two UK licences to operate WiMax services nationally — as part of plans to stave off the threat to its traditional business. However, Pipex is thought to be keen to hold on to the licence.
BT declined to comment on the talks. It said that acquisitions were not the only route to a wider involvement with WiMax and stressed that it was also considering bidding next year in a planned auction of 2.5 gigahertz spectrum, which could enable it to run services.
Ben Verwaayen, chief executive of BT, said: “I don’t think you, per se, need an acquisition to get into that space. But it is a very important possible technology going forward. If that (auction) will be technologically neutral it will be interesting for us to look at it, and we will look at it seriously.”
BT could use WiMax in new applications such as Fusion, its “converged” mobile and fixed-line phone.
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Yesterday BT produced third-quarter results to December 31 that beat analysts’ expectations, with pre-tax profit up 2 per cent on the same quarter the previous year to £568 million on sales up 3 per cent.
However, BT shares closed down 3½p at 209p as investors showed concern over the future of the group, which is fighting fierce competition from local loop unbundling (LLU).
The process, in which rivals put their own kit into BT’s exchanges to offer cheaper broadband services, is set to take off, with up to three million unbundled lines expected this year.
Mr Verwaayen played down the threat: “LLU has a margin impact, but so does every other regulatory intervention.”