BT’s Openreach Threatens to Cut Off TalkTalk Customers Over Unpaid Bills
Openreach, the Infrastructure division of British Telecom (BT), has threatened to block new customers from signing up with internet service provider TalkTalk due to a dispute over unpaid bills totaling millions of pounds.
The standoff could impact thousands of homes and businesses across the UK that rely on TalkTalk for broadband internet access.
Millions in Arrears
According to internal documents reviewed by the Financial Times, TalkTalk has fallen behind on payments to Openreach and now owes over £18 million. The debt has been accumulating for months.
"This is a substantial amount of money, and we can’t let TalkTalk continue racking up debt," said an Openreach executive who asked not to be named. "At some point, enough is enough."
Service Cutoff Looms
If the two companies fail to reach an agreement, Openreach plans to stop processing new customer orders for TalkTalk starting June 8th. This would effectively prevent the ISP from adding subscribers.
"I’ve been with TalkTalk for five years, and now I’m worried about what will happen if I need to move house," said Sarah Johnson, 38, a TalkTalk customer in Manchester. "Will I still be able to get internet service at a new address?"
High-Stakes Negotiations
TalkTalk and Openreach are currently locked in tense negotiations to resolve the payment dispute before the June deadline. Openreach is demanding at least £7 million upfront to continue service.
The companies have clashed before over issues like network upgrades and wholesale pricing. In 2017, TalkTalk filed a complaint with regulators accusing BT of overcharging.
"These negotiations with Openreach are just the latest example of how dependent providers are on BT’s infrastructure," telecom analyst Robert Perkins told the FT. "It gives BT a lot of leverage."
Exploring Other Options
If Openreach makes good on its threat, TalkTalk could try to shift customers to its own wholly-owned FibreNation network. However, that covers just 3% of the UK currently.
TalkTalk has also discussed potential partnerships with alternative network providers like CityFibre to bypass Openreach. But striking such deals would take time.
"We’re working hard to find a solution that prevents disruption to customers," a TalkTalk spokesperson said. "In the meantime, service continues as normal."
With just weeks to go before the cutoff deadline, the clock is ticking for the two telecom giants to settle their differences. Thousands of internet customers across Britain will be watching anxiously.
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