[jagnet]

I don't think a merger is likely considering the size of Smarts massive debts and Imagines income. Most likely a larger company looking for a way into ireland would jump on the chance to aquire or merge. Perhaps Sky UK who roled out a broadband service in the UK last year. Though if this smart-Imagine amalgamation happens it would probably offer residential broadband over the standard eircom wholesale method instead of the fibre->last mile method that smart do at the eircom exchanges.
I do think however that smart will sell off their current marginal business (call cards,cps, etc )to companys like perlico, imagine etc and concentrate on the usual Broadband market. And after the whole Eircom debacle they may even start placing their own Wifi masts and offering broadband in that manor, thereby avoiding the hefty financial and limatation problems involved with dealing in eircom.