TalkTalk pressures the Tiscali Customers to switch
It has been reported that TalkTalk UK ISP, the prominent subsidiary and broadband wing of the mother firm Carphone Warehouse, was all set to start migrating the broadband-only customers of Tiscali UK, the struggling broadband provider that was bought by the former earlier in 2009. It is understood that the migration procedures would start on January 7 2010. However, the issue that is believed to sprout as result of this move is that the broadband-only customers of Tiscali could end up loosing GBP 60 from their pockets if they decide to cling on to their existing provider’s service. They are given a deadline of January 14 2010 to avoid the loss.
As part of the procedure, TalkTalk has sent letters to the Tiscali standalone broadband customers stating that they were required to pay a monthly extra of GBP 5 to carry on using their existing broadband service, providing they bundle their broadband with a phone package of TalkTalk. Mark Schimid, the director for communications at TalkTalk, explained the move saying that they were aligning prices with anticipation that the users of the service of Tiscali would switch to TalkTalk’s broadband service. He added that those broadband only customers of Tiscali has been invited by them to take up a broadband home phone bundle of TalkTalk for just GBP 14 that they thought to be a remarkable deal.
Schimid continued that those Tiscali customers that refused to switch to the prescribed new broadband bundle of TalkTalk would be allowed to stay in their current package, but by paying an extra GBP 5 per month, which meant that their existing cost of GBP 14.99 would rise to GBP 19.99 per month. He concluded saying that his was mainly a broadband and phone company that offered the best packages based on the concept that the price would be raised to GBP 19.99 for those customers that did not want to take up calls from it, wishing to remain exclusively on a standalone broadband deal.
This might as a matter of fact culminate into a situation for the households that had taken a standalone broadband package of Tiscali; particularly those that were locked into an agreement with their home phone provider. It is obvious that the current move from TalkTalk could see this group ending up on a losing note as they would be virtually forced to pay a fee for contract termination or an yearly extra amount of GBP 60 for their broadband. All these while TalkTalk has been intensely arguing that it would save the customers considerable money, being a good offer.
On the other side, the most prominent fixed-line broadband provider as well as the home phone supplier operating in the United Kingdom, BT, has flayed the decision of TalkTalk to migrate customers at a price, on the ground that it could result in marking the end of the virtue called free broadband. It is interesting to listen to the lament made by the managing director of the consumer division of BT, John Petter that it was ironic that TalkTalk and Sky have currently backed from the free broadband deal, considering the duo was the architects of the free broadband concept.
To support his view, Petter has further made a complaint that as the customers of Tiscali UK, the broadband provider, which was facing attrition were believed to be ending up biting the bullet by paying as much as GBP 60 per year for absolutely nothing.
