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TallkTalk Seeking Accelerated Growth Following Telefónica Deal

18/11/2014 by Jay Siddiki


British telecom operator TalkTalk has announced a deal with Telefónica UK to launch mobile services over its network, which it hopes will cement the group's position as a "quad play" service provider.

The London-based firm told the Financial Times that it sees the market shifting more obviously towards quad play – operators who are able to offer TV, broadband and fixed and mobile telecom services – in the near future. 

British consumers have been slow to adopt such bundled deals compared to their European counterparts, but TalkTalk's announcement, which comes shortly after Vodafone's decision to launch broadband TV in the UK, suggests that implementation could be on the increase. 

As the FT points out, a shift towards bundled packages would give telecoms groups the opportunity to sell additional products, which could lead to greater customer loyalty and higher average revenue per customer. 

Dido Harding, chief executive of TalkTalk, says the move "will accelerate that (quad play) business rapidly". 

Harding claims the 350,000 mobile users TalkTalk acquired from a previous relationship with Vodafone will swell as a result of the Telefónica agreement, with it now being able of offer cut-price mobile deals for its customers. 

The deal is set to grant TalkTalk access to the full range of 3G and 4G services in the UK for its customers. 

Imran Choudhary, senior analyst at Kantar Worldpanel, told the newspaper that TalkTalk should make a beeline for the under-30s, given that half of the existing quad-play users in the market are aged 35-54.


Talk talk, mobile, telefonica, British, Telecoms & Internet

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