TalkTalk to launch its own-brand mobile services after deal with Vodafone
Saturday 31 July 2010
The broadband company TalkTalk is to launch mobile phone and data services under its own brand after striking a deal with the network giant Vodafone.
TalkTalk, which was spun off from the Carphone Warehouse group in April, said it will offer the voice tariffs and mobile broadband contracts from the autumn.
Under the mobile virtual network operation (MVNO) agreement with Vodafone UK's wholesale division, Talk-Talk's customers will be able to add the new services to their existing broadband and fixed-line contracts.
While the move was widely expected after the demerger with Carphone Warehouse, it further demonstrates the scale of TalkTalk's ambitions since it launched free internet access in 2006. TalkTalk, which entered the fixed line market in 2003, is the UK's second-biggest broadband provider – behind BT – with 4.23 million customers.
While City analysts are sceptical about the level of additonal revenues TalkTalk's MVNO will generate, they said that signing up customers to additional services reduces the chances of them jumping ship to a rival. Steve Malcolm, an analyst at Evolution Securities, said: "It [TalkTalk's MVNO] is a sensible bolt on."
But he added: "It is as much about keeping churn down and holding on to customers, than it is about delivering a substantial return. Very few MVNOs make money."
Virgin Media is the UK's biggest MVNO with 3.1 million customers, including 1.1 million on a contract, while the market is also populated by the grocery giant Tesco.
TalkTalk unveiled the agreement with Vodafone alongside its first quarter trading, which was in line with expectations. The group added 34,000 net broadband customers over the three months to 30 June.
TalkTalk said the first quarter figure "reflected the slightly slower quarter-on-quarter customer growth typically seen in our business in the first half of the year".
The company added: "Churn across the base remained broadly unchanged." The company grew its total revenues by 31 per cent to £444m.
Charles Dunstone, the chairman, said: "We maintained our momentum in the broadband market, as our brand and tariffs continued to appeal to customers seeking straight-forward, value-for-money broadband and voice services."
Over the quarter, TalkTalk grew its average revenue per user to £23.90, up from £23.30 last year.
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 Sussex couple die in suspected Christmas Day 'suicide pact'
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
UK weather: Travel chaos continues as King's Cross train delays add to snow on roads
The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
North Korea calls Barack Obama 'a monkey' in latest attack as 'The Interview' row festers
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...