Press Release Assignment: “Broaadband market gets hotter”

April 8, 2008 at 3:37 pm | In Online Journalism | Leave a Comment
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Broadband market gets hotter

Digiweb

Digiweb, one of Ireland’s leading providers of broadband, web hosting and telecoms, today announced the acquisition of established webhosting veteran Novara. It is estimated this will create 20 new jobs. While the company would not disclose the price it paid for eight-year-old hosting firm Novara, a spokesman confirmed the deal was for a “seven figure sum”. Dan King, manager with Digiweb, said the purchase of Novara will not lead to any redundancies but instead will lead to job creation. 

This takeover comes as internet usage in the Republic stood at 49% in 2006 (the latest statistics available from the CSO), with 13% of those households (or one in eight) using broadband. The Irish broadband market has got extremely competitive over the last number of years. Beginning with just the state provider, Eircom, many other Irish (and international providers) have entered the Irish broadband race. BT Ireland, Perlico, Irish Broadband, Clear Wire, NTL….the list goes on.

Although this recent acquisition of Novara by Digiweb is good news for the industry and the workforce, it remains to be seen if they can go up against big companies offering ever-increasing price cuts to consumers. Perlico, BT Ireland and NTL all have massive multi-national corporations behind them, meaning they can probably put up more of a fight than their smaller counterparts. BT is listed on both the London and New York stock exchanges; Perlico is part of the Vodafone Group, which is one of the top 25 companies in the world with over 31 million cellular customers worldwide, and interests in 24 countries across five continents. Meanwhile, NTL has teamed up with the UPC Group and offers broadband, television and phone packages. Competition is good news for consumers, may-be not so for small Irish companies.

ENDS

The original press release for this story was taken from Press Release Ireland (http://www.pressreleaseireland.com/2008/04/07/digiweb-acquires-novara/)

 

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