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Tiscali Criticise Carphone Warehouse's AOL Buy

Posted: 13th Oct, 2006 By: MarkJ
Tiscali’s CEO, Mary Turner, has criticised Carphone Warehouse's purchased of rival ISP AOL UK. Turner believes that it will provide a distraction for the operator and give rivals a chance to gain ground:

"This is a tremendous window of opportunity for us as it will be a distraction for Carphone Warehouse, at least in the short term. In the end it will be stuck in the double play arena and is well behind in the market despite this purchase. Voice-play and broadband is old news, we've moved on."

There's perhaps just a hint of arrogance in Tiscali's comments, especially when everybody is aware of the pressure Carphone has placed on the market with its "free" broadband promotion. It's probably unwise to shirk their success and pretend like everything will be ok in the end.

Meanwhile Carphone appears to have lost a mobile phone contract with Vodafone, allegedly because Vodafone wanted a bigger slice of the commission pie. However some suggest that, since AOL’s purchase, Vodafone now sees Carphone more as a rival.
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