Smart Telecom buys stake in network
Smart yesterday bought 10% of Broad Band Communications Limited (BBCL) for €400,000 and two million of its shares.
The company has an option to acquire the remaining shares in BBCL up to 2007, when it would have to pay €10.5m for the stake.
BBCL owns and operates the T50 network around Dublin City and county.
The network cost €20m to build four years ago and follows the route of the M50 motorway around the city.
Smart Telecom, which he headed by former MMI Stockbrokers chief Oisin Fanning, said the deal will boost its broadband access and services to residential and corporate customers.
“Our link up with Broad Band Communications Ltd will provide Smart Telecom with control of our own optical fibre backhaul facilities in the key Dublin market.
“The control of this network will also enable Smart Telecom, through the use of swap arrangements and other such agreements, to develop its own national backhaul network.
“We believe that this will play a key role in continuing emergence of Smart Telecom as a major player in the Irish broadband and telecommunications market,” Mr Fanning said.
Smart will assume day-to-day running of BBCL.
London-listed Smart reported a doubling of pre-tax losses to €4.4m in the first half of this year on turnover of €9m.
The company has made an aggressive push to gain a foothold in the residential telephone and broadband internet market.
Smart raised €15m through a share placing on the stock market in August and it has launched a number of initiatives to gain customers, including free calls between customers who use its service.
Shares in Smart Telecom gained 1.3% on the London market yesterday, valuing the company at €50m.
