Internet and phone provider TalkTalk ( AOL UK , Tiscali , Opal ) has revealed its half year (H1-2010) results to 30th September 2010, which saw their broadband ISP subscriber base grow from 4,231,000 in Q1-2010 to 4,249,000 (+18,000) in Q2. This represents yet another significant reduction in growth for TalkTalk, which added +42,000 in Q4-2009 and +34,000 in Q1-2010.

Presently 81% of TalkTalk's broadband customers are using the groups cheaper unbundled ( LLU ) platform (up from 77% in Q1-2010), which is delivered via 2,003 unbundled exchanges (80%+ UK population coverage). TalkTalk plans to roll-out its network to an additional 700 exchanges over the medium term, which will bring the service to a staggering 93% of the UK population! Further than any of its unbundled rivals.


The operator also intends to launch its own broadband TV ( IPTV ) service around mid-2011 by using the recently cleared YouView ( Project Canvas ) platform, which it hopes will help to drive a 2% revenue CAGR.

However they'll need to put more effort into the TV service than their Vodafone (Mobile Virtual Network Operation) based mobile phone and Mobile Broadband solutions, which weren't properly promoted and offer only a very limited choice.


We note that TalkTalk also admits to seeing an "increase in churn" on its "acquired bases" in the second quarter, which it attributes to the problems that "some customers experienced" during migration of their network access and e-mail servers.

The email episode in particular caused a huge uproar during October (here), with TalkTalk failing to recognise customer concerns or tackle the problem quickly enough. Earlier this month TalkTalk was also given a slap on the wrists by Ofcom for their many billing woes (here). Suffice to say that it has been a difficult quarter.

As it stands TalkTalk's H1-2010 broadband revenue has grown by 24.0% to reach £615m, with total revenue up 12.4% to £887m. Likewise individual customer broadband ARPU grew to £24.70 per month, which is up from £23.90 in the previous half.

It's already looking like 2011 will be a better year for TalkTalk, and the ISP has just revealed plans for a future "super-fast" broadband service using BT's 40Mbps FTTC technology. O2 and Sky Broadband cannot now afford to sit still while their main rivals are breaking out faster services.