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TalkTalk continued to shed customers during the third quarter of the year, it has been reported.

The broadband provider saw its subscriber base fall by 43,000 between July and September 2011, to a total of 4,129,000.

During quarter two, TalkTalk lost a net 27,000 customers, meaning the rate of attrition accelerated over the last three months.

But the firm is confident of returning to growth during the first half of 2012, having taken steps to resolve a number of customer service issues.

Dido Harding, Chief Executive of TalkTalk, explained that earnings are up 36 per cent over the last six months and the firm is making "significant progress" towards its operating efficiency target.

"We are pleased that we are delivering a better experience for our customers, demonstrated by the continuing reduction in calls into our contact centres and a significant increase in the number of customers’ queries being resolved first time," she stated.

"This reflects our priority to improve customer experience and make our end to end systems and processes both more effective and more efficient."

Ms Harding said there is a lag between these initiatives and improvements in customer numbers, but TalkTalk is confident that the effects will soon become more apparent.

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