Doom and Gloom of the ISP's!!

  spuds 13:19 13 Jul 07
Locked

It was announced today that Pipex are finally going to sell to Tiscali for £210m. Reading some of the early comments, there is talk of a mass exodus of the customer base, if this deal is truly signed and sealed.

Remember that it was only a short time ago, that there were talks about Tiscali were trying to offload some of its companies.

As it now got to the stage, that nobody trusts, or even understands whats in store for them, when take-overs and mergers take place. Will it became a case that the UK or perhaps the world will only have a small number of very large commercial companies, who will provide an ISP service at the detriment of the customer?.

  pj123 17:04 13 Jul 07

Same here. Virginmedia hasn't long taken over NTL/Telewest and now already an American Private Equity Group Carlyle are making moves buy it out.

May be good, may be bad. Private Equity Company's generally buy to sell 3 to 4 years later at a profit. If Carlyle manage to acquire Virginmedia then, as a Private Equity company it would presumably come off the Stock Market, so there would be no shareholders to worry about. But I did read that Richard Branson has something like a 10% shareholding and would like to keep it if he sold it.

How he would do that if it came off the Stock Market I don't know.

  spuds 10:34 14 Jul 07

Only one comment in nearly 24 hours. Think I will put a resolved tick to this, don't want my mailbox to get overfull :O)

  Kate B 11:55 14 Jul 07

Private equity isn't necessarily a good thing. Those private equity groups are the corporate raiders of the noughties: they raise a huge pile of debt to buy a company, strip it down pretty ruthlessly and sell off the bits they don't want and then bail out, either via an IPO or by selling it off. It can leave the rump of the company saddled with the debt the purchasers raised to buy it, and it's rarely good news for employees who find staff numbers being cut to the bone.

Also, private equity ownership means that there's no transparency in how the company is run: it exits the stock market and sheds many of the disclosure requirements. I can't see that a private equity takeover of Virgin would do much to improve its customer service.

  oresome 20:14 14 Jul 07

The cable sector started off with many different operators and has now come down to virtually one. The ISP's are going the same way. It's a big boys business and the winners swallow up the losers and make operational savings along the way.

Once there are less ISP's the price competition eases and the service levels just might go up....... along with the charges.

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