Yesterday it emerged that the proposed acquisition of Tiscali by Sky looks to have fallen through, as market conditions put the kybosh on a merger that would have dramatically raised Sky’s share of the UK broadband market. It is thought that volatility in the equity markets stymied the deal, as any attempts to value the company’s assets were rendered fruitless. This has not been helped by shares in the Tiscali falling by 83 per cent over the last 12 months.
So what does this mean for Tiscali customers? Well, if you’re out of contract it means that now may be just the time to start looking around for a new broadband deal. Given that Tiscali is struggling, it’s unlikely to be able to earmark any capital for improving its services in the foreseeable future. So, whatever speed or connection that you’ve got at the moment isn’t likely to improve.
Swapping provider seems especially prudent in light of the fact that everywhere you look it seems UK internet service providers are finding the money to raise speeds and standards. Virgin is leading the way with its 50Mb fibre optic broadband service. And just last week Orange confirmed that it is conducting trials of a 20Mb broadband service, with plans to make it available across the country at some stage this year.
A sale could yet be forthcoming for Tiscali. But as each week brings more and more in the way of falling equities, we wouldn’t bet on it happening any time soon.