{"id":25779,"date":"2021-02-01T17:26:03","date_gmt":"2021-02-01T17:26:03","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=25779"},"modified":"2021-02-01T17:28:18","modified_gmt":"2021-02-01T17:28:18","slug":"shell-signs-deal-to-gobble-post-offices-uk-broadband-division","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/02\/shell-signs-deal-to-gobble-post-offices-uk-broadband-division.html","title":{"rendered":"Shell Signs Deal to Gobble Post Office&#8217;s UK Broadband Division"},"content":{"rendered":"<p>UK ISP and energy provider <a class=\"shortlink shortlink-6\" title=\"shell energy\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/shellenergy\" target=\"_blank\" rel=\"nofollow noopener\">Shell Energy<\/a> has this afternoon confirmed that they&#8217;ve reached an agreement to acquire some 465,000 phone and broadband customers from the Post Office&#8217;s telecoms division, for an undisclosed sum (previous estimates put the value of this deal at around \u00a380m to \u00a3100m).<!--more--><\/p>\n<p>The situation arguably began last year (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2019\/04\/post-office-seek-suppliers-to-support-its-uk-broadband-isp-products.html\">here<\/a>) after the Post Office put out a <strong>Prior Information Notice<\/strong> (PIN), which sought suppliers for a \u201c<em>range of goods and services in order to continue to provide telecommunications services<\/em>\u201d to consumers (prior to this they held a managed service agreement with <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/tt\" rel=\"nofollow\" target=\"_blank\">TalkTalk<\/a>&#8217;s Wholesale division). Since then, we\u2019ve heard very little and they&#8217;ve yet to launch any ultrafast broadband plans.<\/p>\n<p>By comparison Shell Energy, which sprouted their own telecoms business after gobbling First Utility back in 2017\/18 (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2017\/12\/uk-energy-broadband-supplier-first-utility-acquired-shell.html\">here<\/a>), have been busy growing and now has a total of around 130,000 broadband customers. Suffice to say that the operator doesn&#8217;t plan the stop there and they recently emerged as the &#8220;<em>preferred bidder<\/em>&#8221; to acquire the Post Office&#8217;s broadband base (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/12\/shell-now-favourite-to-gobble-post-office-broadband-division.html\">here<\/a>).<\/p>\n<p>As such nobody will be surprised at the confirmation today of Shell&#8217;s move to gobble up the Post Office&#8217;s base. Both providers hold a similar position within the market and have similar products, although Shell has already launched a number of ultrafast broadband packages and they no doubt see some opportunity from up-selling their energy products to a larger customer base.<\/p>\n<blockquote class=\"bq1\"><p><strong>Ed Kamm, CEO of Shell Energy Retail, said:<\/strong><\/p>\n<p>&#8220;We\u2019ve been in the business of providing fast, reliable broadband to thousands of customers across Britain for many years. Today we have signed a deal to welcome nearly half a million more broadband and telephony customers from Post Office. We expect to complete the deal in the coming months.<\/p>\n<p>Our priority is to help our customers access cleaner, convenient and competitive home services; and to provide solutions that will help them to reduce emissions.<\/p>\n<p>A cleaner, zero emission future requires a smarter energy system. In the home this means more interconnected devices such as smart thermostats, electric vehicle charging and battery storage. To support a more efficient and ultimately cleaner energy grid, all of these appliances need to be connected.<\/p>\n<p>Internet connectivity unlocks efficiency and control. The successful convergence of energy and broadband are vital for a lower carbon, multi-source energy system. The energy transition is underway, and I want Shell Energy to be at the forefront of the technology change our customers need.<\/p>\n<p>In order to do that we need to give energy and broadband customers a great experience and a compelling proposition. In growing our broadband business alongside energy, we are focused on doing just that.&#8221;<\/p><\/blockquote>\n<p>The combined business will be home to almost 600,000 broadband and phone customers, which puts them just behind <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vodafoneuk\" rel=\"nofollow\" target=\"_blank\">Vodafone<\/a> in terms (scale) of their fixed line base. Otherwise, the process of migrating the Post Office&#8217;s telecoms base over to Shell will start once the new deal has completed (in a few months\u2019 time) and customers can expect more details to follow in the future.<\/p>\n<p>Meanwhile existing Post Office subscribers have been told that their &#8220;<em>service will continue as normal, and you\u2019ll experience no interruptions throughout the transition<\/em>&#8220;. On top of that they claim &#8220;<em>there\u2019ll be no increases or changes to the prices you currently pay<\/em>,&#8221; although we suspect that this may change as subscribers eventually come to re-contract at the end of their current terms.<\/p>\n<p>One potential risk here is that the PO\u2019s telecoms base is significantly larger than Shell\u2019s and so the latter would need to rapidly scale-up their support teams in order to cope (not so easy), otherwise any migration could be a very choppy ride (risk of confusion, billing errors and other mistakes etc.).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>UK ISP and energy provider Shell Energy has this afternoon confirmed that they&#8217;ve reached an agreement to acquire some 465,000 phone and broadband customers from the Post Office&#8217;s telecoms division, for an undisclosed sum (previous estimates put the value of this deal at around \u00a380m to \u00a3100m).<\/p>\n","protected":false},"author":1,"featured_media":20731,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,113],"class_list":["post-25779","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-postoffice"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - 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