Carphone Warehouse sees 160,000 Tiscali customers disappear
When Carphone Warehouse agreed to acquire the UK business of Tiscali for £236 million it had expected to receive in excess of 1.4 million subscribers. However, today it has been revealed that around 160,000 Tiscali UK customers have "disappeared" during the transfer, which will see a reduction in the purchase price of between £20 million and £25 billion. So what next for Carphone Warehouse?
Carphone Warehouse has gone from strength to strength over the last few years and the acquisition of Tiscali UK, together with the earlier purchase of AOL UK, has put the company at the head of the UK broadband sector. Carphone Warehouse has a reputation for squeezing as much profit out of acquisitions as possible and has blossomed over the last few years. At a time when the UK broadband sector is experiencing significant pressure and competition, Carphone Warehouse still believes that the various acquisitions over the last few years will help to cement the company's position in the market.
There is a feeling in the UK that while cheap broadband has been around for many years, an increase in broadband investment could see prices rise markedly over the next few years. There are also concerns regarding competition in the sector and the fact that many of the smaller players could be squeezed out the sector if they are not able to fund their own investment in future networks.
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