Broadband sales to be boosted by deal between Tiscali and DSGi

Broadband packages from Tiscali will soon be sold through high street branches of both Curry and PC World chain thanks to a deal struck recently with their owner Dixons Store Group International (DSGi).

In an effort to increase its existing base of more than 1.8 million customers in the UK the new deal with DSGi means that the services offered by Tiscali will now be available on sale in the stores. Currently in the UK DSGi have around 160 PC World and 500 Currys branches.

The chief executive of Tiscali UK, Mary Turner said “This is a landmark deal for Tiscali and we are very excited about it. Working with DSGi, we will have the opportunity to showcase to consumers all over the UK our compelling Tiscali packages, including standalone broadband, broadband and voice, free line rental and full triple-play with TV for the first time.”

For every customer that DSGi gain the ISP will pay it a fixed sum said a spokesman for Tiscali.

Recent reports that exclusive talks were underway with BskyB who are looking to pay around £450 million for Tiscali will undoubtedly look a lot sweeter with this new deal.

This could mean that times could become exciting for the UK’s triple-play market if BskyB are successful with its bid, advised Charlie Davis, the Senior Ovum analyst, as this would make for a domination of the broadband scene by the likes of Virgin, BT and now BskyB who would become a “triumvirate” of three major player with Orange and Carphone Warehouse in a second league.

He said “Most importantly, this is a deft shortcut to BSkyB achieving significant scale in broadband, a smart move in a market where broadband growth is slowing, making customer acquisition more costly.”

It would also bring BskyB much closer to Virgin Media and its 3.8 million subscription base as the acquisition of Tiscali would almost double its broadband customer base.