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Tiscali UK
25 September 2008
Tiscali is a telecommunications company with its headquarters in Italy and substantial operations in the UK. With its acquisition of Pipex in the summer of 2007 it was established as the fourth biggest broadband ISP in the UK but it has been gradually losing market share and could be overtaken by Sky in the second half of 2008.
Tiscali could still be a participant in further mergers of UK ISPs. As of March 2008, the Board of the company mandated its new CEO, Mario Rosso, to explore consolidation opportunities. Financial advisers were appointed to support the process. Following this, there were a number of bidders for Tiscali including Vodafone and Carphone Warehouse which already operates two major brands, AOL and TalkTalk. The final bidder was to be announced by the end of June 2008, however, the bidders dropped out one by one and no deal was reached. As of September 2008 Tiscali is said to be in discussions with a potential purchaser once again.
Tiscali UK offers Internet and telephony services to residential and business customers. The operator also offers business services such as IP VPN, hosting solutions, ADSL and leased line access through Tiscali UK Business services.
As of December 2007 Tiscali has about 800 unbundled exchanges covering 52% of UK homes. By mid-2008 Tiscali was claiming 57% coverage and samknows.com was showing it with 868 enabled exchanges. The two recent acquisitions of Pipex and Video Networks are in sync with the company's plan to increase the exchanges to 1,000 reaching 65 percent of the UK population. Tiscali UK also has a wholesale business, reselling its LLU lines to other retail ISPs.
On 4 Jan 2008, Tiscali announced its plans to rebrand its ToucanMobile business, a mobile division acquired with Pipex, to launch cellular services by the last quarter of 2008. With the rebranding, the operator plans to launch "quadplay" bundle services in the UK, a market segment only catered by Virgin Media as of now. Tiscali's mobile arm uses T-Mobile’s network but the operator is said to be already negotiating terms with other mobile operators to lease space on their networks.
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