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. ®

Internet Security Threat Report 2014

More from The Register

next story
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.