How Talktalk went from taking on BT to being rescued by it
TalkTalk was founded to take on BT, slash the price of broadband and shake up a market dominated by a handful of incumbents. But more than two decades later, the challenger has ended up in the arms of the company it was built to challenge. BT stepped in on Monday to buy Talktalk and its [...]
TalkTalk, originally founded to challenge BT and revolutionize the broadband market, has now become a subsidiary of the very company it aimed to disrupt. The British telecommunications giant BT announced on Monday that it had acquired Talktalk and its wholesale arm PlatformX Communications, saving 1.5 million retail customers and another million wholesale connections from potential collapse.
This move comes after months of desperate attempts to find a buyer for the debt-laden broadband provider. Despite generating around £1.2bn in revenue last year, Talktalk remained loss-making and saw a shrinking customer base. The acquisition allows BT to take 1.5 million retail customers and one million wholesale connections under its wing, though the company expects a £400m cash impact this financial year.
The Competition and Markets Authority is set to scrutinize the deal, which could increase BT's fixed-broadband share from 29% to 35%. Talktalk customers' services, prices, and contracts remain unchanged, but the brand's long-term future remains uncertain as it may be phased out as customers are integrated into BT's existing business.
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