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KC, which is a significant market power in Hull and East Yorkshire, made a multi-million pound contribution to the local economy in 2010.

According to a new report from DTZ Consulting, the internet service provider (ISP) – which offers broadband deals under the Karoo brand - generated £150 million for the region last year.

The figure is three times greater than previous estimates for KC's contribution.

DTZ Consulting reported that 68 per cent of KC expenditure went to local suppliers, while 94 per cent of the firm's Hull-based employees are local residents.

KC's Commercial and Finance Director Sean Royce said the ISP's infrastructure and services "have long provided the arteries for local businesses".

"What this report confirms is that our community-centric approach means we are playing a key role in the region's prosperity and that we're making a major contribution," he stated.

"We're very proud of our origins in the region and our ethos of supporting local firms."

However, the news may not be as warmly received by rival ISPs, which have long complained about a perceived KC monopoly on the Humber estuary.

Earlier this week, telecoms wholesaler aql suggested that this may soon come under threat, as cloud services provide new opportunities for Hull residents to separate their home phone and broadband services.

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