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TalkTalk reach 81% unbundled customer base
Tuesday 16 November 2010 11:03:06 by John Hunt

TalkTalk have passed 81% of their broadband base being unbundled, ahead of the full-year target which hopes to see 85% of customers using an unbundled broadband service. The financial results for the company released today also show that in this Q2 period, the company have seen an increase in broadband customers by 18,000 giving them 4.25 million users.

The roll-out of the TalkTalk 'Next-Generation Network' has accelerated and migration of customers to this from BT provided wholesale services has increased. A further 700 exchanges are targeted for unbundling over the medium term which will push them to 93% of population coverage and also the same percentage which should move to the TalkTalk network. As customers can be moved to a fully unbundled network, it increases the average revenue per user (ARPU) that the company can attain. The second quarter saw this rise from from £23.90 to £24.70.

Integration of services through their 'One Company' programme following the acquisition of various broadband companies (such as Tiscali and those it acquired) is on track to complete by the end of the year which will allow them to deliver higher than expected benefits, and the target for synergies has been raised to £55 million.

"TalkTalk now has by far the UK’s largest Next Generation Network, a base of 4.25 million broadband and voice customers, and an innovative and growing brand. It has achieved this by entrepreneurial initiative, organic growth and acquisition. Now TalkTalk is able to start fully realising the potential of this scale, for the benefit of shareholders as well as customers. Accordingly we have developed our strategy to do just this.

At the heart of the strategy is unbundling. Our fully unbundled Next Generation Network enables us to deliver more products and better service to our customers, and is the key driver of our improving customer mix and growing ARPU. We have therefore accelerated our rate of network expansion and unbundling. 81% of our broadband customers are now on our network and we are going to add 700 new exchanges, and aim to put 93% of our customers onto our network, in line with the extended population coverage.

Dido Harding, (Chief Executive) TalkTalk

Whilst the company are keen to big up their 'Next Generation Network', it should be noted that this delivers broadband speeds up to 24meg, the equivalent of WBC over BT's 21CN, and shouldn't be confused with super-fast broadband which is also often referred to as 'next generation' which offers even faster speeds. TalkTalk expect to be offering these newer fibre-based broadband services to customers during their fourth quarter (which ends 31st March 2011).

Comments

Posted by doowles over 6 years ago
So their "next generation network" is infact the last generation network and nothing to do with fiber.
Posted by andrew (Favicon staff member) over 6 years ago
BT 21CN WBC rollout which offers ADSL2+ is also termed next generation network. The Next Gen referring to the IP based core network, rather than previous generations of ATM network.

Next Generation is a moving feast.
Posted by ian72 over 6 years ago
"Next Generation is a moving feast."
Presumably because it is the one after the current gen? FTTC is current gen now for some, as is FTTP - so we don't currently know what "next gen" is for them...
Posted by AndrueC over 6 years ago
'Next Generation' - what Be have been doing for several years now. Admittedly not on that scale, though.
Posted by john (Favicon staff member) over 6 years ago
I guess it could be next generation for TalkTalk, just not everyone else :-)
Posted by jamie543 over 6 years ago
The reason the figures are so high is talktalk have pulled a fast 1 while offering customers the chance to upgrade the phone service they fail to tell the user that it will come with talk talk broadband and you cant have talk talk broadband and other isp. Least thats what happend to me soon after i left talk talk completely
Posted by jamie543 over 6 years ago
**i meant you cant have talktalk phone and anouther isp my bad sorry
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Posted by real_woodworm over 6 years ago
Unless something urgent is done (Ofcom??) unbundling can be very uncompetitive. Because it means that often the only way to move away from your unbundled supplier is to sign up with BT, and BT are happy to charge you over £100 connection fee. Surely in the spirit of fostering local loop competition something should be done about this.
Posted by Whitefort over 6 years ago
TalkTalk... ever-increasing prices, ever-decreasing service, and spying software that follows you as you travel round the net.

What's not to like?
Posted by leshewitt over 6 years ago
>>>TalkTalk... ever-increasing prices...
My bottom line price has hardly increased at all since I signed up in 2007, service has been nothing other than excellent since then. From memory a total of less than one day down time in two incidents.

However, would agree that I don't like software that spies on where we go...
Posted by leshewitt over 6 years ago
P.S. Get consistently above 5.5mb down, 1mb up, line rental and all my calls (except those to mobiles) for less than £25 per month. I think that's great value for money. Initially with other ISP was just over £20 just for broadband, then line rental and calls on top.
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