TalkTalk is continuing the trend of a shrinking off-net (non LLU) customer base, but this has been offset by stronger growth in the last quarter to 31st December 2012 in sign-ups to their full LLU service. Some 69,000 fully unbundled customers joined the provider, offset by 33,000 broadband only LLU customers leaving and another 26,000 leaving its non-LLU service. TalkTalk now has a total of 4.05 million broadband customers.
The popularity of the TalkTalk fibre (FTTC) products is increasing with 22,000 sign-ups in the quarter compared to 15,000 in the previous quarter. The total customer base on the fibre products is 52,000 which is a small fraction of the million BT Retail have, but TalkTalk was in a similar position when it launched its original phone/broadband packages in 2006.
"As expected, overall fibre demand among our customer base remains modest. We expect this will continue until the customer benefits of much higher bandwidth become clearer. Nevertheless, there are certain segments of our customer base that can derive clear value today from upgrading to fibre, for example those who are interested in taking TV from us and live in a fibre-‐enabled area, but who currently do not receive sufficient speed to take our TV product.
We remain actively engaged with Ofcom and government to promote greater competition in fibre through a tighter regulatory framework."Extract from TalkTalk Telecom Group PLC – Third Quarter FY 2012/13 Results
The YouView service also launched during the last quarter and is proving more popular than faster broadband with 80,000 signups and TalkTalk is currently scaled up to install 10,000 new boxes a week with self-install process under trial.
TalkTalk holds the crown as the most extensive ADSL2+ network in the UK (including BT Wholesale) with its ADSL2+ products available from 2,717 exchanges (UK has around 5,500 telephone exchanges), another 22 were added in the last quarter, this LLU network reaches around 93% of UK homes.