TalkTalk CEO Dido Harding this week said she is "deeply concerned" by the prospect of consolidation in the U.K. telco sector, as the company revealed that it saw slower demand for broadband during its fiscal first quarter.
In a trading update on Wednesday, the company said it grew revenue 3.5% year-on-year in the three months to 30 June, compared to the 3.1% year-on-year growth rate it saw in fiscal Q1 2014. TalkTalk did not disclose exactly how much revenue it generated.
"We have made a good start to FY16 and we are on track to deliver full year revenue growth of 5%. We are committed to providing U.K. consumers with value for money quad-play products, while at the same time continuing to invest in our customers’ experience," said Dido Harding, in a statement.
TalkTalk said its new unlimited SIM offer helped it to capture a 15% share of new SIM-only additions during the quarter, up from 11% in the previous quarter.
The picture was not so rosy on the fixed side though.
"In contrast, the broadband market was softer than we have seen in recent quarters, with higher promotional activity in the sector," TalkTalk admitted.
Indeed, TalkTalk’s on-year revenue growth rate in the three months to 31 March was 6%, much higher than the 3.5% recorded in the three months to 30 June.
Harding also reiterated her concerns about BT’s planned acquisition of EE, and 3UK’s proposed merger with O2.
"We remain deeply concerned by current consolidation proposals in the U.K., which will inevitably stifle competition and lead to increased prices and reduced innovation for consumers, as demonstrated in other European mobile markets, including Ireland," she warned, reiterating her call for Ofcom to force a separation of BT and its infrastructure arm Openreach.
"It is increasingly clear that this is the only way to prevent the future of the U.K.’s digital infrastructur e from being held to ransom," said Harding.
