TalkTalk is experiencing stronger-than-expected demand for mobile services following the launch of its first quad play deal.
The company has launched a mobile offering to its Plus TV customers that includes a free Sim with 100 minutes, 250 texts and 200MB of data a month.
Dan Meader, mobile director at TalkTalk, said he expected a surge in mobile sales following the launch of the deal last week, which offers mobile as standard to TalkTalk’s Plus TV customers, who take TV, broadband and fixed line.
‘Our pre-orders and pre–registration rates for that proposition are already much better than we expected. It is looking very strong.’ he told Mobile.
Meader said TalkTalk’s move to include mobile at no extra cost in a quadplay offering for the first time would drive growth of mobile sales next year.
Pointing to TalkTalk’s recent half-yearly results to September 2014, he said: ‘We have seen our best quarter ever, with the addition of 40,000 customers, which takes our total base to 350,000 – 10% of TalkTalk’s customer base.
‘What we are seeing is that customers are more prepared to buy mobile as we have become more established in that space. On top of that we are now offering, for the first time, a true quad play proposition, which will drive added demand.’
TalkTalk has been offering mobile deals for three years. Meader said churn rates show that customers are sticking with TalkTalk as they come out of contract. ‘Our churn rates are very low compared with our targets on churn. It clearly makes sense to our customers to stay with us when we are offering such good value.’
Meader believes quad play will take on an increasingly important role in the mobile landscape as the market converges. ‘The market is moving towards quad play. It offers huge opportunities, enhancing customer loyalty and driving revenues. I believe this trend towards quad play will continue in the UK as it has in Europe.’
He added: ‘This is about convergence. People increasingly want connectivity. The historic line between fixed line and mobile will continue to erode and we will see demand for quad play services really rise.’
Turning to the MVNO deal with O2, Meader said it will open up new opportunities for TalkTalk to develop small cell and Fibre-to-the Premise network, which the company aims to couple to its own in-home 4G spectrum, built on the back of its 1800MHZ spectrum, which Ofcom has relicensed for 4G use.
Meader said: ‘It is a good commercial deal for us, which means we can pass on savings to our customers. It also gives us 4G, which we don’t have, and a platform to develop our small cell aspirations, which will allow us to offer low-cost connectivity to our customers.’