The UK government has stepped in to review BT’s takeover of TalkTalk, amid concerns about what the deal could mean for customers and “vital” UK phone and broadband services.
As a result, a Public Interest Intervention Notice (PIIN) has been issued, allowing the government to look at the wider impact of the takeover as well as competition issues.
The move comes hours after the telecoms giant acquired TalkTalk’s consumer and wholesale businesses after the struggling telecoms company entered administration, in a deal expected to have a total cash impact of around £400 million.
According to the UK government, any failure of its services could have major consequences, with hospitals, schools and emergency services among those relying on phone and broadband connections.
The Department for Digital, Culture, Media and Sport, Secretary of State Lisa Nandy said:”Phone and broadband services are vital national infrastructure. If TalkTalk services fail, there is a genuine risk to life and public services – including to hospitals, schools and emergency care.
“These are unprecedented circumstances that require action now. That is why I am acting with urgency to ensure that impacts on public health, critical national infrastructure and supply to vulnerable customers are fully considered as part of this process.”
Meanwhile, Ofcom has also responded to the takeover announcement and issued advice for TalkTalk customers.
The company watchdog said: “If you are a TalkTalk customer, it means that following the sale process, you will become a BT customer. You should be able to continue to use your landline, broadband and pay TV as normal during the transition and beyond.
Ofcom will continue to play our role in protecting consumers. We will keep a close eye on the transition to ensure that consumers’ interests are safeguarded, and we are in contact with BT to underline our expectations.”
Commenting on the development, a BT spokesperson said: We welcome the Government’s decision to issue a Public Interest Intervention Notice in respect of our acquisition of TalkTalk. BT stepped in following a prolonged but ultimately unsuccessful sale process to avoid the company’s collapse.
“This announcement enables a swifter regulatory review and it allows the Government to take into account the public interest considerations relevant to this deal. As the Secretary of State has said, ‘Phone and broadband services are vital national infrastructure. If TalkTalk services fail, there is a genuine risk to life and public services – including to hospitals, schools and emergency care.’
“BT will work constructively with the Government and the CMA during their review,” they added.
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