TalkTalk responds to BT’s price cuts

Following BT’s price cuts on 1 June, TalkTalk today announced that it too is reducing prices.

Like BT, TalkTalk has cut line rental to £10.50 per month. It’s ‘Talk2’ calling package, which allows unlimited evening and weekend calls, has been reduced to £3.39 (just 6p below BT’s equivalent package). Talk3, which allows unlimited calls to landlines, has been cut to £7.49 (just 1p below BT).

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments: “TalkTalk has been quick to respond to BT’s price cuts. However, while it has overtaken BT as the cheapest call package provider, it hasn’t done so by much. While TalkTalk currently leads the market in terms of price, undercutting BT by a few measly pence won’t be a deciding factor in the battle to win customers.

“Because the telecoms market is so competitive, margins are becoming slim. Suppliers will increasingly need to rely on service and innovative bundle products in order to win new customers. While TalkTalk’s customer service is slowly improving, it retains a poor reputation, something that it will have to overcome if it’s to take on BT in the ‘home phone-only’ arena. TalkTalk’s strength currently lies in its free broadband offer. It would be great to see BT raise the stakes in this regard and bring a similar package to the table.

“As telecoms providers continue to jockey for position, we would advise customers to choose the package that best suits their needs. Rather than basing their choice purely on price, people should always check the small print for things like contract length, exit penalties and relevant extras, for instance friend and family schemes or cheap international calling prices. For anyone looking for a home phone/broadband package, TalkTalk does offer excellent value. However, it will have to overcome those customer service gripes before people embrace it wholeheartedly.”