Skip Navigation


TalkTalk cyber attack costs firm 95,000 customers
Tuesday 02 February 2016 09:52:54 by Andrew Ferguson

This is the first quarter where the impact of the previous cyber attack on TalkTalk systems is visible and the headline is not good news, as the provider has shrunk in size with 101,000 less connections than it had at the start of the quarter. The level of churn was higher than expected at 2.1% but only 0.6% of that is attributed to the attack, the churn was of course partially offset by new gains.

The quarters results are not all negative as the provider had 54,000 new fibre based connections in the quarter and the all important ARPU improved by 6.3%. Other reasons for the higher churn may be that prices for broadband have crept up in the quarter and while things like voice line rental are cheaper than BT Consumer a difference of 29p per month may not be enough to entice people.

"It is encouraging to see the business returning to normal after a challenging quarter that was dominated by the cyber attack. Our customers have responded well, with almost half a million customers choosing to take up our unconditional offer of a free upgrade. Both churn and new connections recovered during December and January and independent external research has revealed that customers believe that we acted in their best interest. In fact trust in the TalkTalk brand has improved since just after the attack and consideration is higher now than it was before the incident."

Dido Harding, CEO TalkTalk Group

The fibre additions figure is interesting, as Openreach declared 494,000 new fibre connections in the quarter, 250,000 which went to BT Consumer. This means that there is 190,000 fibre customers to be shared between Sky and the other providers.

The ongoing future of TalkTalk as the poster child for value for money in the broadband world hinge on the current regulatory reviews underway, if things do not go as TalkTalk want the same regulatory environment that allowed them to explode onto the scene in 2006 may be the slow death of the provider.

Comments

Posted by TheEulerID 8 months ago
"The ongoing future of TalkTalk as the picture child for value for money in the broadband world"

"picture child for value" is clearly a mistype/auto-correct error, but I still can't work out what it was meant to be. Baffled.
Posted by TheEulerID 8 months ago
OK - I've worked it out, it's meant to be "poster child"...
Posted by andrew (Favicon staff member) 8 months ago
So it was.
Posted by burakkucat 8 months ago
". . . connections than hit had at the start of the quarter."

I'll suggest the following correction --

s/than hit had/than it had/
Posted by andrew (Favicon staff member) 8 months ago
Ta :-)
Posted by burble 8 months ago
Anyway lets talk about the story and not the poor spelling.
One of my email address's was hacked in the earlier hack and TalkTalk have still not been able to do anything about it, just today I was told "we're working our way throu the problems caused by the hack and will get to your email eventually.
Posted by GMAN99 8 months ago
Slow or quick death I'm easy with either to be honest
Posted by Essex 8 months ago
I was one that left. IT was an appalling support service for a whole month before. Then the hack was the final nail. The Arrogance of Dido making statements about customers have to be forced to pay if they l;eave early. Was shameful PR. If she had back tracked and apologised. Saying she would not penalise people who had a genuine grievance. A vast number I am sure would have stayed.
Posted by Teefenn1 8 months ago
"...while things like voice line rental are cheaper than BT Consumer a difference of 29p per month may not be enough to entice people". Really? Only 'may' not? Was it relevant to even mention such a trivial disparity?
Posted by danielmec 8 months ago
I switched to TT a few years ago, based mostly on a price-against-usage (which included "free" local/adjacent calls), usage allowance and a desire to encourage anyone-else to compete with BT in my exchange. Their product has proved to be mediocre, their first & second line support woeful and the iterative creep of price increases in concert with removal of features has been annoying. The "cyber attack" and its mishandling has been, in my opinion, criminal - the earlier breaches only came to light after the massive event and in our case we had bogus callers using account information
Posted by danielmec 8 months ago
that had been leaked before (which I was unaware of). I did complain, and my complaint was ignored. Most commentators seem to have overlooked that the last breach was the latest in a catalogue, each due to incompetence.

I can't wait to leave, but until Openreach decide to attach (or otherwise) the coils of cable [hanging on the new telegraph poles since May/June] to our cabinet then I can't switch as I'll be locked in to another contract.
You must be logged in to post comments. Click here to login.