Broadband News

Tiscali Furious at Moneysupermarket Misrepresentation

Thursday, 10 July 2008

By Dan Drage

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A report on rural broadband pricing by troubled price comparison site Moneysupermarket has engendered a scathing response from Tiscali.

The report claimed over twelve million people live outside Tiscali’s (www.tiscali.co.uk) network coverage area, and therefore would be expected to pay an extra £8 a month for broadband. AOL (www.aol.com) also has a similar ‘blackspot’, with ten million homes outside the network coverage area expected to pay an extra £10 a month to gain a service.

"Often, if you opt for a bundle, you’ll be exempt from these blackspot charges"

Blackspots exist where an ISP does not have its own equipment installed in the local exchange and has to buy connectivity from BT (www.bt.com) on a wholesale basis.

In response, Tiscali had the following to say:

“We would like to point out that the Moneysupermarket information is far from complete and doesn’t feature Sky or Virgin Media; both companies have significant price and product differentials for non-LLU and non-cable customers respectively”

They continue:

“It is a shame that they have chosen to communicate in this way, as this is surely failing in their duty to provide consumers with complete and balanced information and, in doing so, helping them to find the best deals.”

Moneysupermarket received further bad news yesterday when Barclays pulled the plug on secured loans provider FirstPlus, provoking a profits warning from Moneysupermarket chief executive Simon Nixon and subsequent share price drop.

Michael Phillips, Product Director at Broadband Choices, has the inside track on blackspot surcharges:

“In terms of out of area premiums, Sky (www.sky.com) charge £17 a month, TalkTalk (www.talktalk.co.uk) £15 a month, AOL £10 a month and Tiscali £8.24 a month”

He continues:

“Loopholes exist to avoid these extra charges though, such as bundling your TV and broadband packages with Sky or taking a phone package from TalkTalk. Often, if you opt for a bundle, you’ll be exempt from these blackspot charges.”

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