According to a report from Sky News, the Carphone Warehouse is to purchase Tiscali UK and the purchase is expected to be finalised sometime in June, and will make Carphone Warehouse subsidiary TalkTalk the largest residential broadband provider in the United Kingdom.

It is expected that the take over of Tiscali UK will help Carphone Warehouse make synergy savings of £40 million to £50 million per year, and predicts a lift in earnings per share by 10 percent in the year to March 2010.

Currently, Tiscali is the 5th largest ISP in the UK and provides service to 1.45 million customers, whereas TalkTalk currently provide ISP for 4.25 customers.