 | |
| TalkTalk | |
| Formerly |
|
| Industry | Telecommunications Internet television |
| Founded | February 2003; 22 years ago (2003-02) inLeeds, England |
| Headquarters | , England |
Area served | United Kingdom |
Key people | Sir Charles Dunstone (Executive Chairman) Dame Tristia Harrison (CEO) |
| Products | Fixed line telephony, internet services,digital television |
| Revenue |  £1,557 million (2020)[2] |
 £115 million (2020)[2] | |
| £153 million (2020)[2] | |
| Parent | Toscafund Asset Management |
| Subsidiaries | TalkTalk Business TalkTalk Technology TalkTalk TV Store |
| Website | talktalkgroup |
TalkTalk Telecom Group Limited (formerlyNew TalkTalk plc from 2009–2010 andTalkTalk Telecom Group plc from 2010–2021;[1] commonly known asTalkTalk Group,trading asTalkTalk) is a British telecommunications company that providespay television andInternet access services to businesses and consumers in the United Kingdom. It was founded in 2003 as asubsidiary ofCarphone Warehouse and was demerged as a standalone company in March 2010.[3] Its headquarters are inSalford.[4]
Originally, just a provider of fixed line telephone services to consumers, TalkTalk now offers fixed and mobile telephone andbroadband services to consumers under the TalkTalk brand, and telephone and broadband services to business customers under theTalkTalk Business brand. Like some other UK broadband providers, TalkTalk has invested in its own exchange infrastructure, known aslocal-loop-unbundling (LLU), with 92% of its customer base unbundled as of December 2012. TalkTalk is now one of the "big four"internet service providers, the others beingBT (EE),Sky andVirgin Media.[5]
The company was listed on theLondon Stock Exchange until it was acquired byToscafund Asset Management in March 2021.[6]
The Carphone Warehouse's acquisition ofOpal Telecom in November 2002 gave it its own switching network providing access toBT Wholesale's landline network. An initial trial was conducted in theManchester region, and three months later,TalkTalk launched with a guarantee that calls would be cheaper than with their perceived chief competitorBT. TalkTalk Broadband was launched in November 2004.[7]
On 11 April 2006, TalkTalk launched a new broadband service which was promoted as "Free broadband forever" and which offered up to 8Mbit/s with a 40 GB monthly usage limit for life to all subscribers to their Talk3 International telephone tariff at £20.99/month. Conditions included signing up for a minimum 18-month contract and a £29.99 initial connection fee. That same year, theAdvertising Standards Authority (ASA) challenged the legitimacy of TalkTalk's claim that this service was truly "free".[8]
Due to the high number of customers who signed up to the free broadband service, the "Free broadband forever" launch suffered complaints with regard to a long waiting list to join the broadband programme and many difficulties in contacting TalkTalk customer services. In aSunday Times interview, TalkTalk chairmanCharles Dunstone admitted that Carphone's TalkTalk business was "struggling to cope" with the more than 400,000 customers who signed up for high-speed Internet access in the time since the service launched.[9] TalkTalk allowed customers to escape the binding 18-month contract for broadband "if it had failed to keep its service commitments in their case".[10] Dunstone stated "In about 20% of customers there is some kind of problem with the phone exchange, the line, or something else.[11] A customer satisfaction poll byuSwitch in November 2006 placed TalkTalk and Orange joint bottom for customer satisfaction.[12]
By 2005, TalkTalk had 2.5 million customers following the acquisitions of the UK subsidiaries ofTele2 for £11.5 million andOne.Tel for £169.6 million.[13] Carphone Warehouse purchased the UK ISP business ofAOL in October 2006 for £370m and renamed itAOL Broadband.[14] This had risen to 2.7 million customers by January 2009.[15]
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In November 2008, Charles Dunstone was reported to be looking to demerge TalkTalk from the main Carphone Warehouse business.[16] The split was confirmed in April 2009, with plans for TalkTalk to become a separate listed company.[17]
Carphone Warehouse agreed to purchase the UK subsidiary ofTiscali in May 2009 for £236 million.[18] The purchase was approved by theEuropean Union Competition Commission in June 2009,[19] and the sale was completed on 6 July 2009.[20] Carphone Warehouse confirmed the business would merge into TalkTalk ahead of the planned demerger.[21] The Carphone Warehouse's full-year earnings statement in November 2009 revealed the TalkTalk customer base had risen to 4.1 million following the purchase of Tiscali UK earlier in the year.[22] Tiscali UK closed to new business on 7 January 2010, and itsportal content moved to the TalkTalk website.[23]
In March 2010, TalkTalk and Carphone Warehouse demerged becoming publicly listed companies.Dido Harding became CEO of TalkTalk and Roger Taylor CEO of New Carphone Warehouse.[24]
In January 2010, TalkTalk launched a protest against the introduction of theDigital Economy Act 2010,[25] and released a video protesting against the law called "Home taping is killing music".[26] Upon the passing of the bill TalkTalk issued a statement on the company blog confirming it would resist attempts to use the bill against their customers.[27]
In a study carried out by UK telecoms regulatorOfcom in 2010, TalkTalk was found to have average speeds of 7.7-9.3 Mbit/sec, while it was advertised as "up to" 24 Mbit/sec.[28]
TalkTalk was warned by the independent communications regulator Ofcom in November 2010 to rectify its billing systems after 62,000 incorrect bills were sent out. The company was given a deadline to correct the mistakes, which it did not meet, and in August 2011 was duly fined £3 million. Ofcom's figures showed that TalkTalk had incorrectly billed over 65,000 customers between 1 January 2010 and 4 March 2011, mainly relating to issues with integrating Tiscali UK's billing system into its own. The company had been overcharging customers for services that had not been received, resulting in the company paying an additional £2.5 million in refunds.[29]
In November 2014, TalkTalk reached an agreement to purchase theADSL business ofVirgin Media, allowing Virgin to focus on its cable broadband offering.[30] Customers were due to begin transferring to TalkTalk from February 2015.[31]
On 8 January 2015, it was confirmed that TalkTalk would purchase the on-demand entertainment serviceBlinkbox and broadband business ofTesco for around £5 million.[32] The purchase of Blinkbox was finalised immediately, and the transfer of broadband and home telephone customers was due to be completed by the end of 2015.[33] TalkTalk confirmed it would merge Blinkbox into its existing services.[34]
Also in early 2015, TalkTalk transferred 108,000 broadband customers outside its LLU network to Fleur Telecom, a subsidiary ofDaisy Group.[35]
In October 2015, TalkTalk experienced a "significant and sustained cyber-attack", during which personal and banking details of up to four million customers is thought to have been accessed.[36] TalkTalk stated they had received a ransom demand from a group claiming to be responsible.[37] Some customers complained that they were targeted by criminals before TalkTalk disclosed the cyber-attack, and the Chair of theHome Affairs Select Committee said "Suggestions that TalkTalk has covered up both the scale and duration of this attack ... must be thoroughly investigated."[38][39]
Having initially stated that all its customers might have been affected, on 24 October TalkTalk issued a statement saying that a "materially lower" amount of customers’ financial information was stolen, and that the stolen data was not sufficient for money to be taken from bank accounts.[40] On 6 November, TalkTalk stated that the impact of the breach was "much more limited than initially suspected", adding that 156,959 customer accounts were involved, from which 15,656 sort codes and bank account numbers had been taken. This amounts to 4% of customers whose financial data is compromised. There were 28,000 partial credit and debit cards stolen, but as these were "obscured" they could not be used.[41] TalkTalk stated the lost data had not been encrypted, but they were not legally required to encrypt it.[42]
The attack cost £42m to TalkTalk and 101,000 subscribers left in the aftermath of the attack. On 5 October 2016, TalkTalk was fined £400,000 by theInformation Commissioner's Office for its negligence on securing clients data.[43][44]
On 1 December 2016, TalkTalk routers were infected with a modified version of theMirai malware, leaving hundreds of thousands of customers without Internet access, because of the inability of TalkTalk to keep the routers securely updated.[45] The malware stole the Wi-Fi passwords of the routers.[46] The handling of the Wi-Fi password breach was criticised by several cyber-security experts.[47]
On 17 December 2020,Toscafund Asset Management announced that it had sealed a takeover which valued TalkTalk at £1.1 billion, taking it private. Toscafund was previously TalkTalk's second largest shareholder.[48][49] The transaction was completed in March 2021.[6]
In late 2021, TalkTalk took over the business of internet service provider Origin Broadband after Origin had amassed over £20m in losses. Origin was split into two separate legal entities, Origin Broadband and Origin Broadband Services, and together restructured as OB Telecom.[50][51]
In March 2022, it was announced that TalkTalk had acquired aLondon-based provider of high-bandwidth network services, Virtual1.[52]
In July 2022, it was reported thatVirgin Media O2 was exploring a bid for the company.[53]
In November 2022, it was announced TalkTalk had acquired a controlling stake in theHorsham-based broadband ISP and products holding company, Telecom Acquisitions Ltd.[54]
It was reported in July 2024 that the company was in financial difficulties and struggling to refinance over £1bn in outstanding borrowings.[55] A successful refinancing, coordinated withA&O Shearman andDNB ASA, was fully agreed and completed before the end of 2024.[56]
TalkTalk provides broadband and landline telephone services for private households. The company provides these services generally together in packages, but also separately. Services were also provided under theAOL Broadband brand, which has been used under licence since Carphone Warehouse bought the ISP. AOL Broadband closed to new business in 2014, although someAOL content is available to TalkTalk customers. Customers are also offered "Homesafe", a network-level online security and website blocking system that TalkTalk introduced in 2011. The system is aimed at parents who want to filter web content such aspornography or violence.[57]
The company is one of seven partners in the television ventureYouView and providesIPTV services including access to YouView. It first inherited an IPTV service from the purchase of Tiscali and renamed it TalkTalk TV in January 2010. TalkTalk closed the service to new business that year and in August 2012 introduced its new service including YouView,TalkTalk Plus TV.[58]
In late 2010 TalkTalk launched a mobile telephone service called TalkTalk Mobile, which operates as amobile virtual network operator on theVodafone UK network.[59] TalkTalk have also launched a mobile broadbanddongle which allows users to access the Internet on the move although you already need to be an existing TalkTalk customer to sign up to these services.[60]
In 2014, TalkTalk Mobile announced its intention to switch its MVNO from Vodafone to O2.[61]
In January 2018, TalkTalk announced that it will exit the mobile provider space, and began offering its customers reaching the end of their contracts O2 deals instead.[62]
The TalkTalk brand was launched with a number of high-profile TV advertisements in 2003, featuring the former public face of BT,Maureen Lipman. TalkTalk's first slogan, "It's good to talk, but it's better to TalkTalk", mocked BT's own "It's good to talk" slogan.[63]
In March 2010, TalkTalk released a parody music video ofHome Taping Is Killing Music to protest against theDigital Economy Act 2010. The video features look-alike performersMadonna,George Michael, andAdam Ant. It was created with the help of British songwriterDan Bull.[64][65][66]
In April 2024,Mark Heap was the lead in a series of radio advertisements for TalkTalk written and directed byRich Johnston and produced byRadioville.[67]
In 2004 TalkTalk won the sponsorship rights toBig Brother from the UK mobile firmO2. Sponsorship continued untilthe racism controversy ofCelebrity Big Brother 5 after which the company retracted its sponsorship agreement.[68]
TalkTalk began sponsoringThe X Factor in 2008, and extended the agreement withITV plc in May 2013.[69]
In 2005 TalkTalk was accused of using the practice oftelephone slamming (changing consumers' residential phone line over to a new provider without their consent).[70]
In November 2012 theInformation Commissioner's Office (ICO) publicly listed TalkTalk as one of a number of companies that it had concerns about due to unsolicited telephone calls for marketing. The concerns were based on complaints. In response, TalkTalk said that it was working with the ICO to address any issues, that the ICO did not plan any enforcement action against it, and that the number of complaints about its telephone marketing calls had fallen.[71]
In early 2008 it was announced that TalkTalk had entered into an agreement (along with BT and Virgin Media) with the formerspyware companyPhorm to intercept and analyse their users'click-stream data, and sell the anonymised aggregate information as part of Phorm's OIX advertising service.[72][73] At the time, TalkTalk confirmed that the new Phorm system, when implemented, would be a strictly opt-in service.[74] In July 2009, Charles Dunstone, CEO of TalkTalk Group announced that TalkTalk had withdrawn plans to introduce Phorm, along with a similar announcement from BT in the same week.[75]
On 26 July 2010,The Register reported that TalkTalk had begun harvesting URLs accessed by TalkTalk customers as part of a new anti-malware system it is developing in conjunction withHuawei, the manufacturer of its network servers. When a user accesses a web page, the URL is harvested and the servers issue the same URL request with the intention of checking the site for malicious code. TalkTalk claims that no personally identifiable information is being harvested however, likePhorm, some users argue there are some potential legal issues with this harvesting of information.[76] Under relevant UK legislation, URLs are deemed communications content and interception without permission is prohibited.[77][78]
TalkTalk briefly offered broadband services in Ireland,[79] but sold their operations toDigiweb.[80]
They had significant service centres, inherited from AOL and Toucan, for UK customers based inWaterford andSligo. The Sligo centre, originally opened for Toucan, closed in 2010 with the loss of 160 jobs.[81] Some employees were transferred to the centre in Waterford, which at the time was advertising 60 positions.[82][83]
On 7 September 2011 it was announced that the Waterford call centre would cease operations within 30 days.[84] There was speculation in the Irish press that the jobs would be relocated to Southeast Asia and the UK.[85] TheGovernment of Ireland and its agencies criticised how TalkTalk and its subsidiary TalkTalk Ireland Ltd. dealt with the job losses.[86] The TalkTalk call centre in Waterford closed on 7 October 2011, with the loss of over 570 jobs.[87][88]
In the past, the company was rated multiple times among the worst landline and broadband providers.[89][90]
Following a sustained effort to improve customer experiences, the company is now rated comparably to its peers byWhich?.[91]
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