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TalkTalk acquires Blinkbox and Tesco broadband customers
Thursday 08 January 2015 11:14:07 by Andrew Ferguson

Scratch another broadband provider from the marketplace, TalkTalk who had been expected to acquire blinkbox from Tesco has also acquired the supermarket's fixed line telephone and broadband customers.

The acquisition is a bit of a New Year bargain at £5 million for the blinkbox Movies business, 75,000 broadband customers and 20,000 fixed line voice households. This was paid as cash in a single transaction and comes as Tesco announces store closures.

TalkTalk is well versed in broadband acquisitions, and is already in the process of moving across the old Virgin Media National ADSL customer base to its own LLU network. The 97,000 Virgin customers when added to todays 75,000 customers brings TalkTalk to within around 60,000 customers of beating Virgin Media into third place in terms of broadband customers.

"Since launch TalkTalk TV has demonstrated its popularity with value-seeking customers to become the UK’s fastest growing TV service. We are excited about the opportunity that blinkbox’s platform and technology expertise bring, and which will significantly accelerate the development of our TV platform. The purchase of Tesco’s broadband base is another example of TalkTalk leveraging its national network to grow faster. We are excited about the future of quad-play – fixed phone and broadband, TV and mobile – and this acquisition will help to further drive home our value for money advantage.

Dido Harding, Chief Executive of TalkTalk

With some 1.2 million customers on the TalkTalk TV platform adding blinkbox should help to push those numbers up even further, especially if this means that a TV app for mobile customers can be rolled out. TalkTalk has not said anything, but if a mobile provider was able to offer a TV streaming app to mobile customers and offer zero cost data usage for purchased films even when using 3G/4G data it could be very disruptive.

2015 is also set to be busy with TalkTalk taking part in the York FTTP/FTTH trial in conjunction with Sky and CityFibre, this should see the two retailers fighting for the custom of 20,000 households in the city and once combined with Openreach FTTP coverage mean York has around 25 to 32% of households (exact figure will vary depending on whether there are overlaps) and almost matched the level of Virgin Media cable coverage in the city.


Posted by baby_frogmella about 1 year ago
Tesco broadband was using the Vodafone (ex C&W) LLU network. Perhaps this now means Vodafone will have greater network capacity for their 4G services? Wonder if Demon broadband will continue using Vodafone LLU?
Posted by andrew (Favicon staff member) about 1 year ago
Given Demon is owned by Vodafone I would hope they continue to use their own LLU network.
Posted by jchamier about 1 year ago
Question is if the Tesco Mobile MVNO will move from the O2 network to the Vodafone network alongside TalkTalk mobile?
Posted by bookey about 1 year ago
TalkTalk will buy O2 once the BT/EE deal is completed. Vodafone will line up with Virgin Media via Liberty Global...
Posted by generallee94 about 1 year ago
Sounds like a good match TalkTalk (shite Broadband) & O2 (shite Mobile)
Posted by generallee94 about 1 year ago
@jchamier I doubt it, Vodafone might charge a bit more than O2! specially for the 4G maybe Tesco will sell that too, though it wouldn't be the greatest thing they could do currently.
Posted by TheEulerID about 1 year ago

Really? Where on earth do you think TalkTalk is going to find the sort of money required to buy O2? The total market value of TalkTalk is under £3b, whilst O2 is valued at a bit under £10bn.

Of course, reverse takeovers have happened, but if it's equity, it would effectively make TalkTalk a subsidiary of Telefonica as it would hold about 75% of the new company (a bit less if TalkTalk raised a lot of cash).
Posted by Adrianuk about 1 year ago
@jchamier That would be a surprise move, considering TalkTalk Mobile is moving to O2!
Posted by brush-head about 1 year ago
Having been unfortunate enough to have been a residential & business customer on their Opal network, both phone & broadband on TT I have found to be awful. I will be going when my current Tesco contract ends which is currently good value & reliability + service. Trouble is I live in a rural town & not a great deal of choice.
Posted by lucy121 about 1 year ago
I couldn’t wait to update you on what has happened. I requested the absolute good luck money spell be cast only last Thursday. Over the weekend and Dr Gboco email: cast a lotto spell for me and told me to play the lotto on friday which i did i purchased a lotto ticket and won £200,000.I still can't believe my eyes it just like a dream to me,
Posted by knicol46 about 1 year ago
I will be leaving Tesco broadband as soon as my contract ends - will not join TalkTalk if they were free - Customer experience score - less than 0/10.
Posted by BREWERDAVE about 1 year ago
I'm getting a little confused......does this takeover of Virgin National/Tesco customers accounts only refer to those on LLU ? Because I thought Dido Harding had said that TalkTalk wanted to get rid of those on "standard" BTW ADSL??
Posted by searcher100 about 1 year ago
I must just be a lucky talktalk customer as I have had nothing but good service from talktalk fibre 71.17Mbps Average download 18.70Mbps Average upload 16.85ms latency Average those were my December figures from Samknows.

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