3’s company for Pure Telecom in comms deal

29 Nov 2007

Pure Telecom, a fixed-line phone and internet provider, is to offer mobile telephony and broadband to business customers through a partnership deal with 3. The company claimed its mobile prices undercut competitors by up to 30pc.

Under the agreement, Pure will resell 3’s recently launched business price plans which cater specifically to the needs of SMEs in Ireland – a potential market of up to 750,000 subscribers.

Pure already offers broadband via DSL, wireless and satellite, along with landline rental and calls through reselling Eircom lines. The agreement with 3 gives Pure a full complement of business telecoms services. The company will also provide business support services to 3’s growing business customer base.

Paul Connell, chief executive of Pure Telecom, said small firms in particular would be attracted by the prospect of saving money. “Pricing is one of the big selling points – the charges are lower and roaming charges are substantially different to what’s available in the market at the moment.”

An analysis of the market by Pure showed 3 offers a reduction of between 27pc and 32pc compared to Vodafone or O2 tariffs. Pure business customers can make these monthly savings through 3’s ‘Business Sharer’ plans that mix voice minutes with text messages and data. These minutes can be shared among multiple mobiles on a single business account.

Pure customers who avail of the mobile 3G broadband services will be able to view all of their communications costs on a single bill. “Business customers like to get these things on to one bill … they want to see exactly how much they’re paying for their fixed line, line rental, broadband and mobile,” said Connell.

The deal could significantly boost Pure’s revenues next year, Connell claimed. “We would anticipate that our turnover could conceivably double in 2008,” he told siliconrepublic.com. Pure is said to be profitable and is on course to record around €15m in revenue for this year.

The deal marks a growing trend for fixed-line telcos to combine their offering with mobile. Vodafone did so through the acquisition of Perlico, and Meteor is part of the Eircom group – although rumours persist about the mobile operator’s long-term future. O2 has yet to reveal its hand but confirmed to siliconrepublic.com that it planned to make an announcement early in the New Year.

By Gordon Smith