3 out of 10 TalkTalk customers on partial or full fibre
The latest financial results for TalkTalk are out and the broadband customer base has grown to some 3,993,000 customers at the end of the quarter. 29% of the TalkTalk customers are on a VDSL2 or in York FTTP connection which is a big change compared to the 21% of a year ago.
The key to the continuing recovery of TalkTalk is not just the low price phone and broadband bundles that they pioneered back in 2006 but a big driver if the fixed price plans where with 1.6m retail customers (50% of the TalkTalk retail presence) are on one of these plans that guarantee no price rises during the minimum term. Given the sensitivity of the public to broadband price knowing that 1 in 3 are on the 24 month contract option should not be surprising.
The York FTTP footprint is set to grow with an additional 40,000 premises to be built in the next two years, which seems slow given the ambitions from CityFibre but the results indicate that if TalkTalk can fixed a co-investor there is scope for a wider roll-out. Given the recent announcements from Vodafone and the non mention in these results it looks likely that those two operators will be competing rather than co-investing.
The increasing popularity of fibre based packages is driving data usage since as line speeds increase streaming films and TV becomes the norm and to that end TalkTalk has been upgrading backhaul at its unbundled exchanges with 750 exchanges now having 10 Gbps backhaul as part of a plan to deliver that sort of capacity to 1,000 exchanges announced in May. The peak throughput on the core network is 3 Tbps which if shared equally among 3.9m customers is 0.75 Mbps or expressed a different way 1 in 4 people streaming video in the SD/HD quality range.