Feeds

TalkTalk loses 43,000 customers, chunk o' revenue in Q3

Better HomeSafe than sorry, telco insists

Boost IT visibility and business value

TalkTalk lost 43,000 broadband customers during the company's third quarter and reported that revenue in that area of the business had fallen year-on-year.

The telco told the City this morning that it was continuing to unbundle exchanges during the quarter and attributed the decline in subscribers to the fact that it was cutting customers loose from BT-based broadband lines.

TalkTalk pulled in broadband sales of £312m during the three-month period ended 31 December 2011, compared with £316m in the same quarter a year earlier.

Total Q3 revenue also fell from £444m a year ago to £422m.

Average revenue per user (ARPU), which is an important metric for telcos, did grow, however. TalkTalk reported ARPU of £25.3 – up from £24.9 in the company's 2010 third quarter.

"As a result of the success of our unbundling programme, ARPU growth and earlier than expected delivery of cost savings, we are raising full year EBITDA and EPS guidance," said TalkTalk boss Dido Harding.

"We have continued to improve our customers' experience with further falls in customer service call volumes and an increase in the rate of online self-service. As a result, churn has stabilised and we remain confident of a return to positive total net adds in the first half of 2012.

"Our operational achievements and strong financial performance give us confidence as we look ahead to delivering an exciting strategic agenda through 2012, including the launch of our TV proposition."

Of the company's 4.08 million customers, only 270,000 of them have so far opted to use TalkTalk's HomeSafe technology, which is a network-level anti-malware blocker for the consumer broadband market.

The system, implemented by the firm in May last year, was provided by Chinese vendor Huawei and works by harvesting every URL visited by every TalkTalk customer. It then follows them to each web page and scans for threats, creating a master blacklist and whitelist of dangerous and safe URLs respectively.

From the end of this month, any new TalkTalk customer will be prompted by the telco to confirm that they are happy to bypass the technology – in effect agreeing that any child using that service will have access to all that the big bad internet offers, such as porn or gambling sites.

Broadband minister Ed Vaizey welcomed the move.

"Ensuring new customers make an active choice about parental controls is a good start in improving the protection for children online," he said.

"It will mean new customers will have to decide whether they want parental controls on their internet access. I look forward to continuing to work with industry to ensure children can safely enjoy the internet." ®

The Essential Guide to IT Transformation

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.