I.T. Vibe - Will Tiscali Call BT's Bluff?

The management at Tiscali are threatening legal action against UK giant British Telecom after Tiscali customers received a letter from BT suggesting that the group had lost focus and had an uncertain future. A copy of the letter has been obtained by ISPReview and it looks set to blow the whole broadband competition league wide open.

Apparently the letter started with the headlines “Tiscali Chief Plots Sell-Off” and goes on to suggest that Tiscali customers should consider switching to an alternative broadband provider, with instruction about how to transfer to BT. It also seems that customers of Tiscali subsidiaries Pipex and Nildram also received the communication, causing widespread concern amongst the Tiscali UK customer base.

There are a number of issues to consider which include :-

How Did BT Gain access To The Tiscali Client List?

If BT is found to have obtained confidential Tiscali data by illegal means the group will face a serious censor from the regulator as well as possible legal action through the courts.

Can Tiscali Afford The Bad Press Which Legal Action May Bring?

If Tiscali decide to take BT to court then the group will be forced to reveal plans for the future of the UK broadband operation. They had announced in January that they would look to sell off the UK broadband division in two years, but if something is imminent why have they not informed customers?

All in all this is sure to be the start of a battle between BT and Tiscali which could turn very nasty with literally billions of pounds at stake.

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