TalkTalk cuts of 13% workforce (UK)
UK’s second- largest residential broadband provider, TalkTalk, is going to cut its workforce by almost 13% as part of efforts to improve profitability.
Dido Harding, chief executive has announced that the company was cutting 580 jobs from its 4,500-strong UK workforce. The staff cuts, which are likely to be achieved through compulsory redundancies by April 30, are the first manifestation of Ms Harding’s cost-cutting drive since she became chief executive last March.
Last November, she set a medium-term target for TalkTalk’s profit margin to hit 20% at the level of EBITDA. The margin stood at 13.6% in the six months to September 30.
TalkTalk is the product of several acquisitions, including the purchase of AOL’s UK internet access business in 2007 and the British broadband operations of Tiscali, the Italian telecoms group, in 2009.
Ofcom warns TalkTalk over billing complaints (UK)
TalkTalk, the UK’s second-biggest broadband provider, has been given a legal warning by the communications regulator; Ofcom to stop breaching telecoms rules after they were found to have issued bills for services that had not been provided. The regulator instructed the group to clean up its operations or face the consequences.
According to Ofcom, it may fine TalkTalk after finding the group had breached regulatory rules by issuing customers with bills for services that had been cancelled.
Ofcom has received more than 1,000 complaints about TalkTalk this year, mostly focused on bills for services that were not provided because they had been cancelled. Some of the complaints relate to the UK phone and broadband operations of Tiscali, which combined with TalkTalk last year.
The watchdog has given TalkTalk one month to comply with the rules. If the group fails to do so, it faces a fine of up to 10% of its annual phone and broadband revenue.
Ofcom highlighted one complaint where a customer switched to another telecoms company in January but continued to receive bills from TalkTalk. The group demanded almost US$176.39 for services that had been cancelled.
In another case, a Tiscali customer paid the company almost US$978.19 for services it had billed her for but not provided. The customer had cancelled her account with Tiscali in 2006.
TalkTalk has been told by Ofcom to compensate affected consumers by issuing refunds to those who have paid bills since January 1 for cancelled services. It has been instructed to stop debt collection action, withdraw any legal proceedings and take steps to repair the credit ratings of specified consumers.
TalkTalk has apologized for the inconvenience caused to a limited group of former customers. As pet the company, the problems had arisen when moving its customers on to a single billing system, which should be completed by the end of 2010.
Talk Talk attributes profits to Tiscali acquisition (UK)
www.WirelessFederation.com/news: A sharp rise in full year revenue and earnings has been reported by TalkTalk Telecom Group PLC and it also predicts another strong year ahead. The profit has been attributed to new broadband customers and its Tiscali acquisition.
According to the company, it expects to deliver continuing “top line growth” as it grows its customer base and launches new services such as mobile and television to existing customers.
The EBITDA of the company rose 27% to GBP230 million in the year ended March 31 from GBP181 million in the same period a year earlier, stripping out exceptional charges and costs. 22% rise in the annual revenue from GBP1.39 billion to GBP1.69 billion has also been reported, driven by Tiscali acquisition in July 2009.
China Telecom partners Tinet on international Ethernet private line
www.WirelessFederation.com/news: A contract for International Ethernet Private Line service has been signed by Tinet, formerly the carrier arm of Tiscali Group, and China Telecom Europe. Layer 2 carrier Ethernet platforms will be provided to the customers in the metropolitan cities across the world through this service.
The partnership can expand the service to more than 220+ PoPs in Mainland China, over 70 PoPs in Europe and more than fifteen global PoPs in other regions. Through standard Ethernet interface, China Telecom customers will be able to connect their offices in Europe and the rest of world on a point-to-point or point-to-multipoint International Ethernet connectivity with speeds ranging up to 1000 meters.
Connectivity is delivered down to the end users buildings Tinet’s Ethernet Extension service through Ethernet NNIs with local access providers around the globe.
