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Network access provider Openreach (BT) has reportedly warned the heavily indebted UK broadband ISP TalkTalk that they could block them from putting new customers on to their network. The threat allegedly arose after the ISP missed several monthly payment deadlines to the network operator, its biggest supplier, due to cash flow issues.
Just to recap. The internet provider has had a rough few years and in September 2024 secured a crucial refinancing package worth c. £400m (here and here), which saved it from the immediate risk of a default on its debts (extended debt maturities to September 2027). But it’s still in a difficult position and recently suffered another round of redundancies (here), as well as the continued shrinking of its customer base from 3.6 to 3.2 million customers over the past year (here).
In addition, over the past couple of weeks, there have also been several newspaper reports about TalkTalk allegedly suffering from disputes over fees and bills with several of its suppliers, such as Sky (here) and Openreach (here). The companies involved have, thus far, declined to comment.
According to a new report in the FT (paywall), Openreach now appears as if it could be holding the Sword of Damocles over TalkTalk’s head following those late payments. The late payments are said to have varied in size and amounted to a “small percentage” of the total amount due, estimated at about £60m per month.
As per the previous reports, these payments have now been settled, although the BT Group is clearly keen to avoid a repeat of this. The newspaper claims that Openreach has now “threatened to block TalkTalk from putting new customers on its broadband network,” which we assume would only be enacted if the same problem with late payments were to continue with future payments.
The vast majority of TalkTalk’s customers come from Openreach’s national broadband and phone network, which helps to underline the significance of the network operator’s position on this.