Talk Talk is set to sell off 136,000 broadband customers in an effort to increase profitability. The customers accounts that its plans to sell off are classed as "off-net" subscribers. These 136,000 customers connect to the Internet via BT equipment which Talk Talk purchases on a wholesale basis rather than its own more profitable infrastructure. The sale is most likely to go to BSkyB or BT themselves.
Talk Talk will retain its more profitable "unbundled" customers in a move that Chief Executive Dido Harding, (pictured left) believes will help raise profit margins to 25 per cent in the next 18 to 36 months. The sale of these accounts is not predicted to generate a significant return with independent specialists valuing the sale at around £10m. Talk Talk currently has 4.2m subscribers and has recently reported an increase in turnover of 3.4 per cent to £1.73bn. Talk Talk have also build a TV business over the last 18 months that boasts 1m subscribers and this remains an important area of their business within a very competitive marketplace.