Feeds

Pipex plotting carve-up for Tiscali deal

Sale to be announced in weeks

3 Big data security analytics techniques

Exclusive The breakup of Pipex and sale of its residential broadband customer base to Tiscali is looking increasingly certain.

Insiders at the takeover target say the terms of the deal will be announced in four to eight weeks.

In the meantime, managers are working out the personnel carve-up, with employees destinations in the split already decided.

Tiscali's poor reputation for customer service, worsened by its response to a recent extended email outage, is said to have set some Pipex staff against the sale.

The Register also understands that Pipex's WiMax licence, which complicated speculations over the UBS-brokered auction of the firm, will remain with the rest of Pipex, concentrated on business customers.

As part of the deal, Tiscali will provide the refocused ISP with access to its unbundled network, which is one of the most extensive in the UK and should lower its costs in providing broadband. Tiscali has unbundled more than 400 exchanges, compared to Pipex's 100.

Pipex has about 570,000 customers across its broadband brands, which include Toucan and Bulldog. Each of the big players in the dog-eat-dog communications market - Virgin Media, BT, Sky, Carphone Warehouse - have been linked with a bid for the firm, but have all fallen by the wayside amid rumours of an over-ambitious valuation and concerns over its diverse interests.

Italy-based Tiscali, which has almost 1.5 million subscribers in the UK, stepped into the spotlight in the middle of May when it confirmed it was in early discussions with Pipex.

Back then, Goldman Sachs analysts valued Pipex's telecoms business at £211m and the hosting and network services at £178m.

As middleweights lacking profile and resources compared to the bundling frontrunners, Tiscali and Pipex have similar problems in attracting residential customers.

Jonathan Coham, a broadband analyst at Ovum said: "This is an interesting move, but Tiscali needs more than just subscribers to maintain its position. They've typically been a low-spending broadband provider, with limited additional services...they'll need to follow this up."

Tiscali and Pipex refused to comment on this story. ®

3 Big data security analytics techniques

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.