BT agrees rescue deal to buy broadband operator TalkTalk
BT has agreed to acquire broadband operator TalkTalk to prevent the company's collapse and ensure service continuity for millions of customers. While the deal is framed as a safety net, critics like Virgin Media have raised concerns about market competition.
Why it matters
The consolidation of major telecommunications providers impacts consumer pricing, service reliability, and market competition in the UK.
Share Save Add as preferred on Google Mitchell Labiak Business reporter Getty Images The UK's biggest broadband provider, BT, has agreed to buy rival operator TalkTalk to save the company from collapse .
The takeover would end of months of speculation over the future of TalkTalk and mean services for its millions of customers will continue as normal.
BT boss Alison Kirkby said it provided "a safety net" for TalkTalk customers. The administrator, Alvarez & Marsal, said it also provided certainty for TalkTalk's 900 staff based in Salford, Greater Manchester.
However, Virgin Media called it a "stitch-up" which allows BT to "tighten its grip" over the market. The government has given itself the power to have the final say on the deal, citing its importance to vital public services.
TalkTalk has 1.5 million retail customers and one million wholesale customers across the UK.
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