Talk Talk reports growth in mobile take-up and plans handset proposition

Talk Talk reports growth in mobile take-up and plans handset proposition
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Talk Talk has reported growth in its mobile business, saying over 50,000 customers are now taking mobile in addition to their phone and broadband service.

The company said it is now planning to launch a handset proposition, in addition to its existing Sim-only and data products, in the spring.

However, it warned that voice revenues are under continued pressure due to the impact of cuts in mobile termination rates imposed by the regulator Ofcom and the decline in fixed-line voice minutes throughout the first half of the year.

The company revealed that total revenue for the six months ended 30 September 2011 fell by 4.8% to £844m. Its broadband revenue was broadly flat at £617m, but non-broadband revenue fell from £103m a year ago to £69m as a result of the lower mobile termination rates and voice usage.

Part of Talk Talk’s woes have been attributed to its weak record in customer service and the company said it has seen an ongoing customer service improvement with 40% reduction in customer service calls and 75% of calls now resolved on first contact.

Dido Harding, chief executive of TalkTalk, said: ‘These results prove we are delivering on our strategy. We are pleased that we are delivering a better experience for our customers, demonstrated by the continuing reduction in calls into our contact centres and a significant increase in the number of customers’ queries being resolved first time.

‘This reflects our priority to improve customer experience and make our end to end systems and processes both more effective and more efficient. There is a lag between these initiatives and improvements in customer numbers, but we are confident that the effects will soon become more apparent.’

According to research released by the Customer Contact Association and Verint Solutions, the majority of consumers will tell organisations if they feel they have had poor customer service (89%) and almost half (44%) believe that companies take little notice of their feedback.

Joe Fernandez

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