Pure Telecom’s NewTel acquisition boosts subs base by 12,000

7 Sep 2007

Pure Telecom, the Irish business telecoms provider started by Paul O’Connell and Alan McGonnell in 2002, says it has paid EUR900,000 (USD1.23 million) for rival telco NewTel Communications, with a deferred payment of EUR200,000 to follow. The move will see the creation of 40 new jobs at Pure and will also result in 12,000 customers and NewTel’s Citywest-based call centre and staff moving over to Pure. Pure Telecom has agreed the deal with NewTel’s Australian parent company Orion Telecommunications. O’Connell says the buyout will help his company increase annual revenues by around EUR8.5 million to over EUR15 million. NewTel was established in the Republic in 1999 by Orion Telecommunications, and the unit also looked after customer service, billing, provisioning and collections for Orion’s UK division. Pure Telecom says it plans to retain the NewTel brand name in the medium term at least, which has garnered a loyal user base. Pure is also looking to offer a MVNO service in the country, having recently signed a mobile reseller agreement with an unnamed mobile operator to offer services under the Pure Telecom banner.