Tiscali UK suffered a second consecutive fall in its broadband subscriber base during the first quarter, it has been revealed.
The company’s latest financial results show that at the end of the three-month period to March 31st, the company had some 1.7 million broadband customers. This is down from 1.768 million as of December 31st 2008. The decline means that Tiscali’s customer base has fallen for two consecutive financial periods, with 6,000 leaving between the third and fourth quarter of last year.
News of developments comes as Tiscali recently agreed to be acquired by rival broadband supplier Carphone Warehouse/TalkTalk for £236 million. Subject to regulatory approval, the deal is expected to be completed in June.
The transaction will create the UK’s second-largest residential broadband provider and boost cheap broadband specialist TalkTalk’s subscriber numbers to 4.25 million. This equates to around 25 per cent of households.
Carphone is expected to attempt to turn around the struggling company principally through cost-saving synergies it has already identified. These include the adoption of a single billing system and "efficiencies associated with backhaul, the core network and individual exchange costs". The retailer forecasts that these will result in savings of between £40 and £50 million.
However, retaining customers might prove difficult for TalkTalk in the short-term. Since news of the takeover broke, some rival broadband companies have begun targeting Tiscali customers with money-saving incentives in a bid to persuade them to switch broadband provider.
Sky is currently offering Tiscali customers a £50 voucher and a Sky+ set-top box worth £90 for transferring their custom. In order to qualify for the offer, switchers must sign up before June 11th.