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Telecom Acquisitions, the holding company for the ever-growing Home Telecom brand, completed its sixth acquisition in many weeks in the form of Homeshift, a company that has supported the lettings industry for many years – with it’s own book of circa 500 broadband customers on the Vodafone network.

Whilst this might seem to some a small amount of customers, in reality circa 500 new net adds in a month to a lot of companies, including the AltNets, would be classed as a great month. These customers are acquired without sales acquisition, installation or router costs, and then deliver a profit in month one – proving a winning formula.

Homeshift took the strategic decision to sell the assets of the base to enable the company to continue with its software development plan, the recent introduction of ‘Stop Sell’ is a driver limiting the further growth of this base.

Interestingly, in the past people could move bases fairly simply between networks taking advantage of inducements and cheaper buying prices as it was all about connections. 

“working with Kenny Alegbe from Homeshift over the last few months has been a real pleasure, and at Home Telecom we are delighted to be the choice to deliver great customer service to Homeshift’s customers. Providing a seamless transition from one company to another.”

CEO Nigel Barnett

In further comment industry veteran Nigel Barnett explained:

“Many of the companies that have been around for a few years still have ADSL, PSTN and FTTC connections. And it has become apparent over the last couple of months that these customers are far more expensive to move across networks, if indeed you can, therefore it affects valuations instantly.

Taking into account the new breed of AltNets that we have acquired over several different networks recently, which in the past had the advantage of moving them around for greater profitability is no longer there. With the Altnets pricing being so cheap at the moment there is no real advantage of scale. Thus, the old adage that everyone used to base their worth on price per customer is now well and truly out of the window. Instead, EBITDA is the only true measurement but with everyone’s churn increasing because of the Stop Sell and residential customers on shorter contracts valuations are continually affected.

However, on the brighter side our advantage of being part of the TalkTalk group with millions of customers, our cost of severe is well under control and therefore lets us substantially grow in these changing times without increasing overheads.”

Currently we have a real appetite for further expansion, so if there are any interested parties, however large or small, we would welcome the discussion.


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