A priority will be to position Tiscali's broadband and add-on services against rivals such as BT, AOL, Wanadoo and NTL. The latter this week announced plans to cut or outsource 6,000 jobs by the end of 2007.
The agency won a pitch understood to have included Firefly Communications, Hill & Knowlton, Text 100 and the incumbent.
Borkowski stays on Tiscali's roster but its new role is 'still to be defined', said Tiscali PR and comms director Jody Haskayne.
She said of Hotwire: 'We needed an agency with core skills in our industry, with a knowledge base in telecoms and the internet.
'We wanted someone capable of hooking into the industry issues and explaining them to journalists and consumers.'
The new account is led by Daljit Bhurji, head of Hotwire's digital media practice, and the agency's head of consumer, Paul Naphtali. Both report to Haskayne. Hotwire will also provide a press office function.
Tiscali, which has 4.7 million European users and two million UK customers, began reviewing its UK PR as it assessed the changing broadband arena (PRWeek, 24 February).
Borkowski was hired two and a half years ago on fees of £250,000, but worked on a project basis while the brief was reviewed.
The internet service provider recently launched a new TV ad campaign, set in a cheese shop.