Internet service provider (ISP) Tiscali has lowered its profit forecasts for this year on the back of losing 37,000 customers in the last quarter.
The firm cut its predictions by £40 million, leaving a projected profit of £140 million.
Tiscali has had other problems recently when plans to sell its European branch fell through.
It is thought that this reduction in potential profits could result in further difficulties in selling the business as well as more issues later on in the financial year.
Sky could well overtake Tiscali and become the fourth largest ISP in the UK, possibly within the next quarter, given the fact that it added 200,000 to its service.
BT is the dominant force in the market at the moment with approximately 4.5 million customers, with Virgin Media behind with over 3.8 million.
Both companies reported a growth in subscribers in the last quarter, although neither could match that of Sky, the closet being BT with just over 100,000, according to the Times.