Tiscali taps DSGi for broadband sales

Tiscali is to sell its broadband packages through PC World and Currys

Tiscali has struck a deal to sell its broadband packages through high street retailer Dixons Store Group international (DSGi), owner of the PC World and Currys chains.

The deal means that all Tiscali services will be available for purchase from the stores, helping Tiscali add to its existing user base of over 1.8 million UK subscribers. DSGi has around 500 Currys and 160 PC World stores dotted across the UK.

"This is a landmark deal for Tiscali and we are very excited about it," said Mary Turner, chief executive of Tiscali UK.

"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."

A Tiscali spokesman said that the ISP will pay a fixed sum to DSGi for each customer acquired.

The deal could be a good sweetener for the likes of BSkyB, which is reported to be in exclusive talks with Tiscali to buy the company for around £450m.

Senior Ovum analyst Charlie Davis believes that, if BSkyB succeeds in its bid, it could mean exciting times for the triple-play market in the UK, as it would create a "triumvirate" of three major players dominating the broadband scene - BT, Virgin and now BSkyB - followed by a second league of Carphone Warehouse and Orange.

"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," he said.

If the Tiscali acquisition goes ahead it will essentially double BSkyB's broadband customer base, taking the firm closer to Virgin Media's 3.8 million subscribers.