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The telecoms company said that it was attracted by Bulldog's emphasis on local loop unbundling (LLU), in preference to reselling BT products.

Bulldog has already unbundled 38 exchanges in London but plans to have its equipment in around 200 by the end of the year. It uses BT Wholesale products to provide services elsewhere in the UK.

Chief executive Francesco Caio said, 'Increasingly our customers are demanding broadband DSL. We believe that local loop unbundling will provide selective opportunities driven by customer demand to expand the reach of our services and enable us to provide a differentiated offering. The acquisition of Bulldog will accelerate our ability to deliver directly connected DSL solutions for our existing and potential customers with an experienced team specialising in LLU services.

Bulldog was unavailable to comment.