As the future of Tiscali, and in particular the company’s UK broadband division, comes under closer scrutiny many are asking if the UK division can survive. Share trading in Tiscali was suspended some time ago after the banks demanded the production of a repayment program to cover their debts. The company is currently under a stay of execution after bankers agreed to extend existing agreements to give more time to negotiate a settlement.
The uncertainty surrounding the company’s future has seen the likes of Be Broadband and other Internet providers in the UK step forward with promotions targeted at Tiscali broadband customers. The longer the situation drags on the more damage it is certain to do to the UK broadband division thereby reducing its value. While there are rumours that Carphone Warehouse and BSkyB may well step back into the fray with an offer for the business, this is in no way a certainty.
While the reduction in customer numbers for Tiscali broadband division continues, so far we have not seen massive numbers flee elsewhere. However, with more competitors offering sweetners to transfer over, the pressure is most certainly on Tiscali to resolve the matter sooner rather than later. How long the banks will give the former telecom giant very much remains to be seen.