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It has been a recent trend that more of the larger telecommunication companies are consolidating with smaller competitors. The last few months has seen The Carphone Warehouse buy AOL and BT's purchase of PlusNet. Pipex was one of the last independent recent broadband providers and have also bought smaller companies like Bulldog and switch 2 Telecoms. Pipex have 570,000 broadband customers and 480,000 voice customers that Tiscali promise to carry on providing them with good service and competitive prices. Tiscali is an Italian company but with a high focus on the UK and plans to increase customers by 1.9 million. In the nineties Tiscali provided its service to fifteen countries but now only provides to Italy, The UK and Czech Republic. Concentration on fewer markets was needed as especially in the UK as competition is high, especially by larger companies with high cash flows and UK customers changing providers frequently. Tiscalli has high hopes for greater success with the new purchase of Pipex but will have to work hard to put off their own company being bought out too.
Staff editor, Broadband Section, July 2007 |
