AOL and Tiscali up for sale.
The UK arms of AOL and Tiscali are up for sale.
AOL is the UK’s third biggest broadband provider, with 2.2 million customers. The Carphone Warehouse and BSkyB are both rumoured to be trying to gain control of AOL UK.
Tiscali is the UK’s further biggest broadband provider with 1.2 million customers. BT is a possible buyer for Tiscali UK.
The consolidation of broadband providers in the UK market is largely due to the intense competition driving down prices. This is putting a lot of pressure on broadband providers who are struggling to turn a profit. We are likely to see more consolidation in the future.