Home
 » ISP News » 
Sponsored

UK ISP TalkTalk Could be Close to Selling their Off-Net Customers

Saturday, November 15th, 2014 (2:01 am) - Score 2,138
talktalk uk isp

New information suggests that broadband and phone provider TalkTalk could be close to off-loading some or all of their off-net customers to another ISP (i.e. those based off BT’s network rather than their own unbundled / LLU platform), although no deal has yet been officially signed.

Back in the spring TalkTalk proposed that one of several ways to “unlock further significant savings” over the next couple of years would be for them to sell their less lucrative off-net subscribers (here). At present the ISPs off-net base comprises 116,000 broadband (BT IPStream) and 242,000 phone subscribers, with related customers delivering an Average Revenue Per User (ARPU) of just £20.01 (well below the £26.54 for on-net).

In TalkTalk’s mind customers on their off-net base aren’t getting a good deal (most of them are on tariffs from legacy brands like Tiscali and AOL) and the ISP probably doesn’t see it as being terribly cost effective to keep them. Plus their broadband adds would look a lot stronger without the churn from off-net casting a constant shadow.

But since May 2014 there haven’t been any new developments, until one of our usually reliable industry sources got in touch to say that a potential buyer had been spotted flying over the off-net base. According to the source, TalkTalk’s recent move to purchase around 100K of Virgin Media’s older ADSL subscribers might have been just the kick needed to make a final deal possible (here).

One reason for this is because the Virgin National (Virgin.net) base can be largely converted to lower cost unbundled lines and many may also be pushed onto FTTC, which would help to mask the sudden loss if a similar amount of TalkTalk’s off-net base were to suddenly be sold (TalkTalk would prefer not to dip below the 4 million subscribers mark).

Officially TalkTalk said they didn’t have anything to say and that’s unlikely to change until a deal is formally signed. In terms of a buyer, we don’t have an answer for that one, although BT / PlusNet, EE, Sky Broadband or possibly even Vodafone all seem like potential candidates (note: Sky might be struggling with a similar off-net dilemma to TalkTalk). Naturally we have asked around and predictably everybody has so far dodged the question.

According to an earlier report from STL Partners, TalkTalk’s off-net subscribers are valued at less than £10m and that may also open them up to interest from medium sized ISPs like Zen Internet (although we admit this seems unlikely given Zen’s premium/business focus vs TalkTalk’s low-cost angle).

Delicious
Add to Diigo
Tags: ,
Mark Jackson
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on Twitter, , Facebook and Linkedin.
Leave a Comment
3 Responses
  1. mark woodward

    If this were to be so, how would this leave end users such as myself who live rurally, are with the Postoffice Broadband, on Adslmax via TT/BTW unable to upgrade?
    Whilst still revenue for TT, and they do not have the end user to worry about directly, this still means they are lumbered with a “customer” base they do not want on legacy networks and so are still tied to BTW.

    Woody

    • Any deal would not affect the Post Office’s older / remaining BT based subscribers, or so I’m lead to believe. This is only concerning TalkTalk’s own direct consumer off-net base.

  2. terri

    talktalk is well talked about on this isp site they trying always to get more customers or into buying allsorts but saying that they wont succeed due to run by crappy BT but they say I get 70% of the speed on crappy fibre so they get 70% of the money for the heap .

Comments RSS Feed

Javascript must be enabled to post (most browsers do this automatically)

Privacy Notice: Please note that news comments are anonymous, which means that we do NOT require you to enter any real personal details to post a message. By clicking to submit a post you agree to storing your comment content, display name, IP, email and / or website details in our database, for as long as the post remains live.

Only the submitted name and comment will be displayed in public, while the rest will be kept private (we will never share this outside of ISPreview, regardless of whether the data is real or fake). This comment system uses submitted IP, email and website address data to spot abuse and spammers. All data is transferred via an encrypted (https secure) session.

NOTE 1: Sometimes your comment might not appear immediately due to site cache (this is cleared every few hours) or it may be caught by automated moderation / anti-spam.

NOTE 2: Comments that break our rules, spam, troll or post via known fake IP/proxy servers may be blocked or removed.
Promotion
Cheapest Superfast ISPs
  • Hyperoptic £18.00 (*22.00)
    Avg. Speed 30Mbps, Unlimited
    Gift: Code: CHRISTMAS18
  • Onestream £19.95 (*34.99)
    Avg. Speed 35Mbps, Unlimited
    Gift: None
  • Vodafone £20.00 (*22.00)
    Avg. Speed 35Mbps, Unlimited
    Gift: None
  • Direct Save Telecom £22.95 (*29.95)
    Avg. Speed 35Mbps, Unlimited (FUP)
    Gift: None
  • TalkTalk £22.95
    Avg. Speed 36Mbps, Unlimited
    Gift: None
Prices inc. Line Rental | View All
Poll
*Javascript must be ON to vote*
The Top 20 Category Tags
  1. BT (2309)
  2. FTTP (1785)
  3. FTTC (1532)
  4. Broadband Delivery UK (1499)
  5. Openreach (1249)
  6. Politics (1242)
  7. Business (1111)
  8. Statistics (978)
  9. Mobile Broadband (894)
  10. Fibre Optic (893)
  11. FTTH (838)
  12. Ofcom Regulation (824)
  13. Wireless Internet (814)
  14. 4G (780)
  15. Virgin Media (756)
  16. Sky Broadband (552)
  17. TalkTalk (530)
  18. EE (519)
  19. Vodafone (412)
  20. Security (372)
Promotion
Helpful ISP Guides and Tips
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
Sponsored

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms  ,  Privacy and Cookie Policy  ,  Links  ,  Website Rules