Tiscali broadband customers 'could face internet cut off'

Wednesday, 15 April 2009 03:55

Customers of broadband provider Tiscali may soon be forced to take their business elsewhere, unless the Italian-based provider can settle its debts, it was revealed today.

Independent auditors Ernst & Young warned of "fundamental uncertainties" on the business continuity and added the company could only maintain operations if it renegotiated its debts with lenders.

Tiscali contested the auditors' conclusions and said it would propose a plan to reduce the firm's losses at a shareholder meeting later this month.

The company also claimed that it had already agreed a standstill arrangement with banks until June.

Over 1.8 million UK customers could be affected if Tiscali is no longer able to operate.

"In the meantime the company continues to operate as normal both in Italy and in the UK both with customers and suppliers," the firm said in a statement.

Graham Garrod, a Tiscali customer, said he was not shocked by the news and the prospect of losing his connection and site on which advertising his holiday cottage depends.

"It is hardly surprising, their first priority was never customer service," he said.

Along with reports of Tiscali's woes comes the news that rival Prodigy has been cut off by BT for missing payments. As a result, tens of thousands of Prodigy Internet customers have been left without a connection.

Jessica McArdle, marketing manager at Top10-Broadband.co.uk, said: "People are right to worry about the fortunes of their ISPs in the current climate.

"The problems suffered by two high-profile ISPs suggests that more broadband providers could be hit in months to come.

"It's imperative that consumers and businesses keep a very close eye on their broadband provider - especially as the credit crunch worsens."

Johanna King

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