Feeds

Carphone Warehouse buys Tiscali UK

Hammer down on world's most tedious auction

Beginner's guide to SSL certificates

Carphone Warehouse has bought Tiscali's UK businesses for £236m after lengthy on-again off-again negotiations.

The cash deal, announced this morning, will see Talk Talk and Tiscali's networks integrated within two years. Service will not be interrupted by the deal, and for now Tiscali customer service remains the point of contact for subscribers.

Tiscali UK CEO Mary Turner said: "It's good news for our customers who will increasingly benefit from a group that has consistently championed best value and award-winning customer service."

The size of Tiscali's customer base has fallen in the last two quarters as customers seek better customer service.

The firm's Italian parent group put it up for sale more than a year ago. Talks with Sky and Vodafone collapsed as bosses reportedly sought about £600m for Tiscali UK's 1.76 million subscribers (including about 300,000 on dial-up).

They have been forced to accept a much lower price by the group's massive debts, which led auditors to cast doubt on Tiscali's survival prospects last month.

The Carphone Warehouse deal, announced this morning, means the combined company will have more than 4.25 million broadband subscribers. It will rank second in the overall market.

Carphone Warehouse said it expects to make integration savings of between £40m and £50m by March 2011. It said they will come from migrating 80 per cent of customers to a single, unbundled network and "efficiencies associated with backhaul, the core network and individual exchange costs". Billing systems will also be combined.

Charles Dunstone, Carphone Warehouse CEO, said: "We are delighted to be acquiring Tiscali's UK business - we know the business well and the fit with TalkTalk is perfect. In one step, it makes TalkTalk the UK's largest residential broadband provider with over 25 per cent residential market share."

The deal is subject to regulatory approval and is expected to go through in June. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.