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TalkTalk regains market share after cyber attack setback

James Pearce
April 15, 2016

Figures from Kantar show 3.2 per cent jump for broadband provider after customers had flocked from it following October’s cyber attack

TalkTalk saw its share of new customers rise by 3.2 per cent to 12.2 per cent, showing signs of recovery from October’s cyber attack that was a PR disaster for the quad-play provider.

TalkTalk’s had seen its share of sales fall from 13.4 per cent to just nine per cent in the wake of the hacking scandal, which affected more than 157,000 customers. 40 per cent of new TalkTalk customers told Kantar Worldpanel ComTech they had selected the provider because of low costs.

Kantar consumer insights director Imran Choudhary said this shows TalkTalk’s efforts to repair some of the reputational damage caused by the cyber breach has started to pay off for the provider.

“Increased value propositions and heavy promotional activity have led to a robust performance in the first quarter of this year,” Choudhary explained. “Reassurances on data security, including plans for voice recognition software use, mean consumers are willing to give the provider another chance.

“TalkTalk still has a lot of work to do. They may have gained a higher share among new customers this quarter but despite this turnaround their existing customers aren’t happy. Over 17 per cent of their current broadband base is considering leaving them at the next available opportunity, a far higher proportion than anyone else.”

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BT and Virgin both make gains


Figures from Kantar showed that BT maintained the highest share of new customers for the three months leading up to March 31, with 31.5 per cent of sales, up from 28.6 per cent in the previous quarter.

Virgin Media also saw its share of sales increase, by two per cent to 13.1 per cent. This markets a steady rise for the Liberty Global-owned provider, which had just 8.9 per cent share of the sales last year.

Choudhary explained: “If current trends in the paid TV sector continue we could see BT usurp Sky with the largest market share in new customers by the second quarter – a first for the operator.

“In broadband its share continues to climb to nearly a third of the market as it scores well with consumers in several key areas. BT is seen as a trustworthy brand which offers good promotions and fast broadband, which is absolutely key for even casual internet users.”

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