Tiscali in deep trouble

(By Richard Holway 7.00pm 8th March 09) I have a vested interest in the health of Tiscali as they have been my ISP ever since broadband arrived here in rural Farnham in 2002. Just 3 months ago, it appeared that Tiscali’s UK operations (who also own Pipex in the UK) were being fought over by a variety of suitors including Vodafone and Carphone Warehouse. In November, it looked like BSkyB would win Tiscali’s 1.84m clients and a price of £450m was widely suggested.
This all when pear-shaped on Christmas Eve when talks were suspended. Then on Friday, Tiscali’s shares were suspended as it admitted that it had asked its bankers to suspend interest payments as deteriorating market conditions meant that it was ‘almost impossible’ for any deal to be consummated.

The extent of the deterioration is reflected in Tiscali’s share price – down over 80% in the last year. Forget £450m for the UK operations. Tiscali, in total, now only has a market value of €183 – and debt of £448m.

Should I be worried as a customer? I guess whatever happens someone will pick up the assets (ie me!) from the receivers. In the meanwhile I just hope I don’t need to make a support call! Give Tiscali their due, I’ve had near flawless service for seven years and it only costs £14.87 per month for 8mb unlimited – not that I ever get anything like that down our little lane. But that’s not Tiscali’s fault. I can’t see us ever being included in BT’s new fast broadband roll out either!