A Selkirk-based start-up is aiming to disrupt the UK telecoms market by being the first to offer customers same-day telephone and broadband services without holding them to long-term contracts. Set to launch next month, TenTel says it will offer a unique 'move-in, turn-on' service with no enforced tie-ins or hidden extras. The new offer will be aimed principally at customers in rented accommodation.
Working in partnership with landlords and letting agents, the company will offer them a commission for each line of data they supply and for each of their tenants who signs up for the service. The deals could increase the company's profitability by up to 40%, according to TenTel. Letting agents managing a thousand properties would generate commission of £25,000-a-year, said the company.
The company claims to have the most competitive prices in the market with just a 30-day notice period for customers who want to cancel their service or switch providers.
For those wishing to sign up for a long-term offer, the Advance bundle will give telephone and broadband services for one year for £250. According to the regulator Ofcom, the average household in the UK pays £451.44p a year for those services.
TenTel expects to sign 20,000 new customers in its first year of trading, rising to 100,000 customers within five years. It forecasts a turnover of £9m in its first year.
Robert McKechnie, managing director of TenTel, said: 'This approach has worked successfully in the energy market, where the onus is on customers to opt-out, whereas ours is an opt-in model which assumes nothing and gives customers the choice to switch.'
He added: 'This is a brand new approach in the telecoms market that offers customers a less expensive and more convenient service, while also providing a new income stream for landlords.'
Because the firm doesn't spend large sums on marketing campaigns or sales commissions to switching sites, it can pass on those savings in the form of cheaper deals to its customers and commission to its partners, he explained.
'Landlords and letting agents can find out how much additional revenue they could be generating by using the calculator on our website,' said McKechnie.