Feeds

Carphone Warehouse buys Tiscali UK

Hammer down on world's most tedious auction

Providing a secure and efficient Helpdesk

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. ®

New hybrid storage solutions

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Turnbull: NBN won't turn your town into Silicon Valley
'People have been brainwashed to believe that their world will be changed forever if they get FTTP'
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.