Tiscali mulls broadband legal action

Tiscali has said it is taking legal advice after its customers were urged by a price-comparison service to change provider.

Customers were warned by Top 10 Broadband that they should consider changing while Tiscali continues to suffer from financial problems.

But Tiscali said the comments were "totally irresponsible" and that it was taking legal advice.

"We believe the press release issued by Top 10 Broadband is totally irresponsible," the company said in a statement.

Top 10 Broadband diffuses Tiscali row

"They have obviously not read our press information released yesterday and have issued this press release to drive traffic to their own website and for their own commercial gain. We are reviewing our legal position on this press release," the statement continued.

Earlier this week, Tiscali was dealt a blow when its auditors, Ernst & Young, declined to sign off Tiscali's 2008 accounts.

Tiscali disagreed with Ernst & Young's conclusions that the ISP's future was dependent on negotiations with its creditors and said in a statement that the company was continuing to operate as normal.

"The company further clarifies that it has started a process aimed at the renegotiation of the financial debt with key lenders, who have shown to be supportive with this approach; in the meantime the Company continues to operate as normal both in Italy and in the UK both with customers and suppliers," the statement read.

Top 10 Broadband said in its original release that the current economic climate could see broadband customers losing the service if their ISP folded.

"People are right to worry about the fortunes of their ISPs in the current climate. We urge concerned consumers to switch to broadband providers who can offer stability," said Jessica McArdle of Top 10 Broadband.

Tiscali's financial problems have seen the company looking for a buyer since last year, though negotiations with The Carphone Warehouse and Sky have come to nothing so far.

Last month, Be Broadband made an offer of £40 of credit or gift vouchers to Tiscali customers that wanted to switch.