Telecoms set to consolidate

Consolidation in the voice over IP (VoIP) market will help it through the credit crunch, according to a report by accountancy firm Grant Thornton.

Sarika Patel, head of technology at Grant Thornton, earmarked Luminson and NOD, Prodigy Networks, Fast.co.uk, Firefly Internet and Breathe Networks as potential UK acquisition targets for larger telecoms firms and ISPs.

“Private equity will also see opportunity in this sector. Venture capital has poured nearly £1bn into VoIP and related businesses in the four years to 2005,” said Patel.