Broadband ISP TalkTalk has given its support to an alternative means of funding and deploying next generation 100Mbps fibre optic broadband services. The new plan was first put forward on Sunday morning by Tory Shadow Chancellor, George Osborne, whom suggested using part of the BBC TV Licence fee to pay for its rollout; this would apparently be supported by a further break-up of BT (original news).


In addition TalkTalk has quietly u-turned on its threat of a price hike to existing Tiscali UK customers, which the group acquired last year. Customers of Tiscali's former "broadband-only" package, which was priced at £14.99 per month, had been warned that the price of their service would rise to £19.99 if they refused to take the operators own broadband and phone line service.

TalkTalk's threat caused a great deal of anger among Tiscali's remaining customer base, with many objecting to the apparently forced adoption of TalkTalk's phone line service. The short notice period didn't go down too well either and neither did the possibility of a 25% price rise.

Happily TalkTalk has now recognised that it has a duty to honour the original contracts. New customers who joined Tiscali between September and December 2009 will be offered 6 months service at half price when they take a new contract with TalkTalk. Those who do not take the new contract will be credited to cover the monthly price increase until their current contract period ends.

Separately TalkTalk clarified that it still has plans for both a future Internet TV (based off Tiscali TV and Project Canvas) and mobile phone service. Further details are expected to follow later this year.