TalkTalk’s migration of customers from copper to fibre continues to bear fruit, with the firm reporting increases in revenue and average revenue per user (ARPU) over the past three months.
The company added 118,000 users to is fibre service during Q1, with 70 per cent of new customers opting for faster speeds.
This helped ARPU increase from £24.62 to £24.72 and revenue to rise by 1.3 per cent to £382 million.
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“Q1 is in line with our plan. Revenue and Consumer ARPU rose year on year, underpinned by very strong demand for faster, more reliable Fibre products,” said TalkTalk CEO Tristia Harrison.
“Up to 75 percent of new Consumer customers are now taking Fibre and we’re seeing more customers than ever choose the faster of our Fibre products. In addition, our ongoing simplification and cost reductions continue to drive improvement in profitability, and we remain on track to deliver EBITDA in line with expectations for the year.”
Fibre is becoming increasingly important to TalkTalk with more than half of its customer base now taking fibre to the cabinet (FTTC) or fibre to the premise (FTTP) services. It has built an FTTP network in York and is now looking for investment partners to reach three million premises through its FibreNation venture.
The hope is that FibreNation will deliver superior broadband services for TalkTalk and Sky’s customers and offer a wholesale alternative to Openreach for other broadband providers. Mobile operators will also have a new option for backhaul services.
It has been reported that TalkTalk is seeking as much as £1 billion for the expansion and the company claims there has been “good progress” in finding potential investors.
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