Broadband News
TalkTalk move could cost Tiscali customers £60 more a year
Wednesday 23 December, 2009
By Becca Talbot - becca@consumerchoices.co.uk
Tiscali broadband customers could be left £60 out of pocket if they don’t switch their home phone service to TalkTalk before 14 January 2010.
TalkTalk (www.TalkTalk.co.uk), the broadband and home phone supplier that bought Tiscali UK earlier this year, will begin migrating Tiscali broadband-only customers on 7 January next year.
Customers with Tiscali standalone broadband have been sent a letter by TalkTalk saying they must either bundle their broadband with a TalkTalk phone package, or pay an extra £5 a month to continue with their broadband service.
Communications director for TalkTalk, Mark Schmid, said: “Tiscali customers will become TalkTalk customers in January and we are aligning prices. Those who are broadband-only with Tiscali have been invited to take TalkTalk phone and broadband for £14.99 which we think is a great deal.”
However, for Tiscali broadband customers who don’t want to, or can’t, take their calls with TalkTalk, the cost of their broadband will rise by £5, from £14.99 to £19.99 a month.
Schmid continued: “We are a phone and broadband company and offer the best deals on this basis; if customers don’t want to take calls from us and wish to remain broadband-only, the price will increase to £19.99.”
While TalkTalk argues that this is a good offer and will save their customers money, households that are locked into a contract with their home phone supplier could stand to lose out, having to pay as much as £60 a year extra for their broadband, or a contract termination fee from their supplier.
Ofcom, the telecommunications regulator, said of the practice: "This issue has been brought to our attention. We are monitoring complaints and we are in touch with TalkTalk on this issue."
BT (www.BT.com), Britain’s biggest home phone provider, has criticised TalkTalk’s decision to migrate customers at a cost, saying it marks the end of supposedly free broadband.
John Petter, managing director of BT’s consumer division, said: “It is ironic that the architects of free broadband, TalkTalk and Sky, have both now back-flipped on the deal. TalkTalk could make an extra £36million from ex-Tiscali customers who bite the bullet and pay £60 a year for absolutely nothing.”
Michael Phillips, product director at Broadbandchoices.co.uk, said: “While TalkTalk’s broadband and phone package is good value for money, if you’re a Tiscali customer and you’re not happy, you should compare broadband deals online using a broadband comparison service and switch to a package that better suits your needs and budget.”
However, Phillips warns those who are in contract with Tiscali for their broadband or with another supplier for their home phone service to watch out for termination fees: “Check with your suppliers to see whether you’ll be penalised for leaving them - it may be that the savings you make by switching your phone service to TalkTalk cancel out the fees you have to pay to leave your current supplier.”
In a special offer for Tiscali customers, Plusnet (www.plus.net), one of the UK’s cheapest broadband providers, is giving all ex-Tiscali subscribers three months free broadband if they use the promotional code tiscalisave when signing up online.
BT is also offering Tiscali customers who are unhappy with the price increase a special deal, giving them broadband for just £9.99 a month - half the price of TalkTalk broadband. Tiscali subscribers should ring 0800 345 7423 for more information.
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