Post Office phone and broadband services to move to TalkTalk network
Friday 25 May 2012 11:01:32 by Andrew Ferguson

Fujitsu is a long term partner working with the Post Office since 2006, and it is now set to manage a £500m five year contract to provide broadband and telephone services to the Post Office.

The new contract will see the actual broadband and telephone service provided by TalkTalk and is thought to be worth £100m to TalkTalk, with Capital providing customer support and MDS supplying the billing. This replaces an existing contract that the Post Office had with BT, and may put a dent into the revenue for BT Wholesale in particular.

The Post Office broadband service was rare in that it only offered an ADSL based service even in areas where ADSL2+ on the WBC BT Wholesale platform was available. The TalkTalk LLU network has been offering ADSL2+ since its creation (though was capped at 8 Mbps for a while), and now covers 92% of UK households.

For consumers it is far too early to know what precise products people will be put onto, e.g. if taking both phone and broadband whether they will moved onto a full LLU service or use partial LLU. Partial LLU is a lot simpler to migrate away from, but can be more expensive to run.