Key facts
- Virgin Media has criticized BT's acquisition of TalkTalk.
- TalkTalk has been working to increase its TV subscriber numbers.
- TalkTalk has reduced prices on some of its broadband offerings.
- TalkTalk was ranked last in customer satisfaction by Ofcom for the second consecutive year.
Virgin Media has publicly criticized BT's acquisition of TalkTalk, referring to it as a "stitch-up." This statement comes amidst TalkTalk's efforts to expand its presence in the UK television market and its recent strategic moves to attract customers through price reductions on broadband packages.
In the first quarter, TalkTalk emerged as the fastest-growing new TV business in the UK, adding 150,000 subscribers. By the end of March, its total TV base reached 230,000. The company began offering YouView set-top boxes for free to its 4 million-plus customer base starting September 28. TalkTalk reported that 25% of its total customer base were new to its services. This growth rate surpassed rivals such as Sky, which added 30,000 TV and internet TV users; BT, with 40,000 pay-TV customers; and Virgin Media, which added 13,700.
TalkTalk's chief executive, Dido Harding, stated that the company's customers appreciate the comprehensive content and value-for-money pricing, and that the company will continue to invest in growth to achieve its medium-term financial targets. The company has also appointed Joanna Shields, a former Facebook European chief and a business ambassador for digital industries, to its board to advise on its growth strategy.
In a bid to attract more customers, TalkTalk has announced price cuts on some of its broadband packages, with deals starting as low as £18.95 per month. The company offers a guarantee that customers can leave within the first month without penalty if unsatisfied. However, the cheapest deal offers speeds of up to 17Mbps, which may not be sufficient for high-demand activities like 4K streaming. Faster fibre options are available at higher price points, which are still competitive with offerings from Virgin Media and Sky.
Despite these efforts, TalkTalk has faced criticism regarding its service quality. An Ofcom survey indicated that TalkTalk was ranked worst for customer satisfaction for the second consecutive year, with the lowest recommendation rates and the highest number of complaints. A TalkTalk spokesman acknowledged the results as "disappointing" and stated that initiatives such as closing call centers in India, implementing new online complaint tools, and rolling out new routers are being undertaken to improve customer satisfaction.