Telecom Eireann has confirmed that it has bought Indigo, the Internet service provider. The price has not been disclosed but it is believed to have been £2.75 million.

Indigo, which is understood to have almost 10,000 subscribers and Telecom's own Internet service, Telecom Internet, will continue to operate as separate services .

It is understood that Mr Shay Moran, whose family were Indigo's biggest shareholders, will remain on for some time. The current general manager of Telecom Internet, Mr Aidan Finnegan, will take control of Indigo's operations.