Business telecoms specialist Pure Telecom is to make a significant push into the consumer market following the €1.1 million acquisition of NewTel Communications Ireland.

Pure will pay an initial consideration of €900,000 to NewTel's Australian parent, Orion Telecommunications.

NewTel had annual revenues of €8.5 million in the year to the end of June last and has 12,000 residential customers. Pure Telecom's managing director, Paul Connell, said NewTel is "currently showing an operating profit on a month to month basis".

Mr Connell also said that Pure has signed a reseller agreement with a mobile operator that will enable it to offer mobile phone services in the next couple of months.

Perlico, backed by Dr Michael Smurfit, announced a similar agreement with 3 Ireland in July.

Mr Connell said that as a result, NewTel will shortly be able to offer customers landline, mobile and broadband services on a single bill.

He said that Pure will maintain the NewTel brand as the company has achieved a high level of customer loyalty since it began operations in Ireland in 1999.

"We've done well on the business side by keeping customer acquisition costs low but customer satisfaction high," said Mr Connell.

"We aim to do the same in the residential market."

As part of the deal, Pure will acquire NewTel's Dublin-based call centre which supported its Irish and UK operations. The Irish operation was Orion's largest subsidiary in Europe by revenue.

Pure's most recently filed accounts with the Companies Office show that it turned a profit of €211,447 in 2005.