TalkTalk adds 24,000 customers in latest financial results
The latest TalkTalk results reveal the provider is growing its customer base and has 4,234,000 customers on its network (a further 33,000 are customers but using an off-net connection). The second quarter to the end of September 2018 saw some 24,000 net additions in terms of customers.
As one would expect the VDSL2/FTTC/FTTP services added 125,000 customers in the quarter, which will be existing TalkTalk customers upgrading from ADSL2+ and new customers migrating into the provider. The results talk of 54% of new customers taking the higher speed products but the results are vague on whether they mean the fastest FTTC service or people joining and picking any FTTC speed service, we suspect it is the latter. An very revealing comment is 'These customers are not only a driver of stabilising ARPU, they also have lower cost to serve and materially lower churn.', is this the start of TalkTalk realising that running an ADSL2+ LLU network is outdated and its time to move more people onto the FTTC network or their own FTTP service where available or just a reflection of the price promotions Openreach has on the FTTC products.
The big structural change is that the London TalkTalk HQ will be moving to Salford to create a large single main campus which is all part of reducing costs and with the Fibre Nation news this means key staff are much closer to where the main future strategic battle is being fought.
Remember SOGEA - Single Order Generic Ethernet Access well it gets a mention and TalkTalk say they are in a position to be an early adopter of the service which. SOGEA is effectively a naked VDSL2 service i.e. the Openreach line does not support a voice service but before everyone thinks this means they'll save around £18/m this is not the case since the wholesale costs are going to remain broadly the same since you still need to pay for the physical line. We are expecting most providers who adopt SOGEA to offer a VoIP type service presented via a telephone socket on the broadband router.