Daisy Group

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Pipex Communications
Company typePublic limited company
IndustryInternet Service Provider
Founded1991
HeadquartersLondon, England, UK
Key people
Peter Dubens Chairman, Mike Read CEO, Stewart Porter CFO
ProductsBroadband services
Revenue£ 133,000,000 GBP (2006)
Number of employees
574
Website[1]

Pipex Communications PLC is a British company that sells Internet and telecommunications services, including hosting, broadband Internet connections, and VOIP.

Business areas

Pipex is divided into different business areas: a residential division handling voice and broadband services; Pipex Business, aimed at small and medium sized businesses; Freedom4 (formerly Pipex Wireless), which provides wireless broadband services using WiMAX; and a hosting division, which includes brands 123-reg and WebFusion.

Market position

Through a number of acquisitions the company also owns a domain registration brand, 123-reg, and low-end hosting business (Hosteurope/Webfusion/Magic Moments).

In Summer 2006 Pipex began a TV campaign fronted by David Hassellhoff and Deep Roy with Hassellhoff styling himself as "King of the Internet; Powered by Pipex" which has attracted some online debate.

On 13 July 2007, Tiscali UK acquired the consumer broadband and voice businesses of the British competitor, Pipex, at a sum of £210 million. Tiscali estimates that the deal increased its customer base in the UK up to 1.9 million.

Pipex Broadband

Pipex broadband comes with "8Mb broadband" (theoretical maximum bandwidth) as standard, and the difference between their packages is really the download quotas and the various bundled telephone options. In line with the strategy of many UK broadband providers, Pipex is willing to heavily discount its broadband charges for consumers who are willing to commit to taking bundled services on a twelve (or eighteen) month contract.

Like most ISPs, Pipex's service is subject to a "fair usage policy". Details of the operation can be found here.

In 2006 Pipex contracted David Hasselhoff as their spokesman and he appeared on several prime-time UK terrestrial TV advertisements to market their £29.99 bundle with the slogan "£6.50 Broadband". This coincided with the release of his first single in the UK.

In May 2007 Pipex launched a "free" broadband service offering six months’ free broadband to customers that sign up to its broadband and Anytime calls package. The offer includes local and national calls and up to 8Mb broadband for £12.50 per month.

From September 2007, Pipex Broadband is entirely run and maintained by Tiscali.

Company history

The original company was established in 1991 and founded by Peter Dawe, originating from Unipalm, a software reseller in Cambridge, as the first commercial ISP in Britain. It initially operated with a 64k transatlantic leased line to UUNET. One of its first customers was Demon Internet. PIPEX rapidly expanded and formed joint ventures across Europe and Africa. Later it merged with the US ISP UUNET to form UUNET PIPEX and the Unipalm business was sold. UUNET was subsequently taken over by Metropolitan Fiber Systems (MFS) which in turn was bought by Worldcom which later merged with MCI and was eventually rebranded MCI after emerging from Chapter 11. MCI was bought by Verizon and is now known as Verizon Business.

In December 1998 David Rickards purchased the Dial business from MCI, including the Pipex name. MCI continued to operate the Pipex domain names and the use of some infrastructure. The new Pipex company went on to offer domestic broadband services using BT's ADSL system, rapidly gaining market share by competitive pricing. It was announced in October 2003 that it had been purchased by GX Networks plc, for £55 million. GX Networks renamed itself to Pipex Communications plc to preserve the brand. Following the sale of Pipex Broadband to Tiscali in 2007, Pipex Communications then changed their name again to GX Networks Ltd in March 2008.

Pipex customer service

A number of gripe websites have been set-up to air frustrations about alleged inadequate customer support service provided by Pipex. The websites include PipexProblems , and Martha's Pipex Blog and the original Pipex gripe site, pipexcommunicationsplc.com. On 25 April 2007, Web User internet magazine published an article in which Pipex subsidiary 123-reg, admitted serious failings in customer service. Mark Beyer, Director of 123-reg, told the magazine that the company had encountered problems in setting up a new service support location and had gone "through the valley of darkness" in making the new arrangements. An article in Issue 239 of Computeractive magazine dated 19 April - 2 May 2007, recounted the unfortunate experience of a family billed for a Pipex service they never received. The family was subsequently pursued by debt collectors called in by Pipex. According to the article, only after the intervention of the magazine, Pipex called off the debt collectors, apologised and gave the family what the magazine described as a "derisory" amount of £30 as a "goodwill gesture".

Migrations to Tiscali Networks

In January 2008, Tiscali began migrating Pipex customers over to its own network. This was done to both save money and provide the customers with a better service. However, a company insider claimed that the move was to increase customer numbers and not to provide a better quality of service.[1]

Following the move some users began to complain about throttling, or so called "traffic management". [2]

Since the migration started there are many reports of customers experiencing disconnection from the Internet varying from a few minutes to many hours or days. [3]Many long-term Pipex clients say they are migrating, or already have done so, to an alternative ISP.[4]

Timeline

  • 1990 - Unipalm Pipex was established and founded by Peter Dawe, originating from Unipalm, a software reseller in Cambridge, as the first commercial ISP in the UK. [5]
  • 1991 - Unipalm Pipex became Pipex Internet Ltd. [6]
  • 1995 November - UUNET purchased Pipex (for £150m) and branded as UUNET/PIPEX. [7] [8]
  • 2001 April - Pipex known as Worldcom PIPEX (After UUnet merges with MFS, which is later acquired by WorldCom before merging with MCI to form WorldCom MCI, later renaming back to MCI). [9]

Note: Pipex has contracts with MCI with regards to the network structure.

  • 2002 January - Pipex invests £2m to get 40,000 DSL users online. [10]
  • 2003 October - Pipex acquired by GX Networks plc, retains Pipex name, calling itself PIPEX Communications plc. [11] [12]
  • 2003 November - Firstnet Services Limited changes it's name to PIPEX Communications Business Solutions Limited.
  • 2003 December - The Company transferred PIPEX Networks Limited (at that time PIPEX Internet Limited) to

PIPEX Internet Limited (at that time Zipcom Telecommunications Limited)

  • 2004 January - PIPEX Internet Limited changes its name to PIPEX Networks Limited.
  • 2004 January - Zipcom Telecommunications Limited changes its name to PIPEX Internet Limited.

Note: At this point "The company" directly holds: PIPEX Internet Limited, Transigent Limited and Firstnet Services Limited.

  • 2004 April - Host Europe (WebFusion and 123-reg) is acquired by Pipex. [13]
  • 2004 August - Nildram is acquired by Pipex. [14]
  • 2005 April - Donhost is acquired by Pipex. [15]
  • 2005 October - freedom2surf is acquired by Pipex. [16]
  • 2006 March - Pipex buys Caudwell Communications UK Limited (trading as Homecall, now rebranded to Pipex Homecall) including "Switch2" [17]
  • 2006 August - Pipex buys Supanetwork Limited (trading as Supanames) for £2.1 million in cash [18]
  • 2006 September - Pipex buys Toucan [19]
  • 2006 September - Pipex buys the customer base of Bulldog Broadband [20]
  • 2007 March - Pipex appoints UBS to investigate its strategic options, which could include a sale of the Company. [21] [22]
  • 2007 July - Tiscali announces it will acquire the Pipex Broadband and Voice division for £210 million [23] [24]
  • 2007 September - Tiscali completes acquisition of all consumer broadband and voice businesses from Pipex. [25]

Note: The Pipex Broadband and Voice division contains the following subsidiaries: Pipex Internet Limited, Pipex Homecall Limited, Toucan Residential Limited, Toucan Residential Ireland Limited, Switch2 Telecoms Limited, Bulldog Broadband, Freedom to Surf Limited, Freedom to Surf Registration Services Limited, Freedom to Surf Consumer Services Limited, AccentUK Limited, Nildram Limited, Trinite Limited, Trinite Services Limited, Pipex Broadband Limited, HighwayOne Limited, Pipex Networks Limited, Pipex Communications Services Limited, GX Networks Twelve Limited, Homecall (UK) Limited and Homecall Payment Services Limited.

  • 2007 September - The Pipex internet brand now exists as Pipex Internet Limited, a Tiscali UK company.
  • 2007 September - Pipex seeks buyer for remaining assets. [26]

Note: Remaining assets include Freedom4 (previous Pipex Wireless), Pipex Business, donhost, Gokei, Host Europe, WebFusion, and 123-reg.

  • 2007 October - Tiscali/Pipex Job losses. [27]
  • 2008 March - Pipex Communications plc is now known as FREEDOM4 Communications plc [28]
  • 2008 March - Due to Pipex Broadband being sold to Tiscali last year, the company known as Pipex Communications Ltd is now known as GX Networks Ltd. [29]
  • 2008 March - Pipex Business rebrands as Vialtus, a GX Networks Ltd. company. [30]

External links

Notes

  1. ^ http://www.broadbandchoices.co.uk/cover-tiscali-migrations-300108.html
  2. ^ http://bbs.adslguide.org.uk/showthreaded.php?Cat=&Board=pipex&Number=3249518&page=12&view=expanded&sb=5&o=0
  3. ^ http://www.theregister.co.uk/2008/01/28/tiscali_pipex_migrations/
  4. ^ http://www.ispreview.co.uk/talk/showthread.php?t=23398
  5. ^ http://www.inovatech-powerline.com/content.asp?ContentId=925
  6. ^ http://web.archive.org/web/20001110003500/www.pipex.net/about/
  7. ^ http://www.inovatech-powerline.com/content.asp?ContentId=925
  8. ^ http://www.ecoln.com/nws9605.html#X6
  9. ^ http://www.gtnet.gov.uk/corporate/news/
  10. ^ Pipex invests £2m to get 40,000 DSL users online
  11. ^ GX buys Pipex - theregister.co.uk 2003-10-03
  12. ^ http://www.pipexgroup.com/pg.asp?p=1163
  13. ^ Pipex buys Host Europe - theregister.co.uk 2004-04-02
  14. ^ Pipex buys Nildram - theregister.co.uk 2004-08-09
  15. ^ Pipex buys Donhost - theregister.co.uk 2005-04-28
  16. ^ Pipex buys Freedom2Surf - theregister.co.uk 2005-10-18
  17. ^ Pipex buys Homecall - theregister.co.uk 2006-03-23
  18. ^ Pipex buys Supanetwork Limited (Supanames.co.uk) for £2.1 Million
  19. ^ Pipex buys Toucan
  20. ^ Pipex buys Bulldog - www.bulldoglounge.com 2006-07-09
  21. ^ http://business.timesonline.co.uk/tol/business/industry_sectors/telecoms/article1503309.ece
  22. ^ http://www.theregister.co.uk/2007/03/12/pipex_for_sale/
  23. ^ Tiscali to acquire Pipex broadband and voice division for GBP 210 million with new financing package - tiscali.com 2007-07-13
  24. ^ http://www.oft.gov.uk/advice_and_resources/resource_base/Mergers_home/decisions/2007/Tiscali
  25. ^ http://www.theregister.co.uk/2007/07/13/tiscali_buys_pipex/
  26. ^ http://news.independent.co.uk/business/news/article2998984.ece
  27. ^ http://www.theregister.co.uk/2007/10/30/tiscali_pipex_redundancies/
  28. ^ http://www.freedom4communications.com/pg.asp?p=1451
  29. ^ http://www.techwatch.co.uk/2008/03/05/pipex-renamed-gx-networks/
  30. ^ http://www.vialtus.com/components/download.asp?id=218
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