Dido Harding accuses BT of trying to bribe Ofcom
TalkTalk's chief executive, Dido Harding, has launched a scathing attack on rival BT, calling its £6bn investment in faster broadband “a shameless attempt to bribe the regulator.” Harding welcomed the decision by the European Commissioner to block the proposed merger between Three and O2, and called for BT and Openreach to be formally separated. Harding also revealed the financial fall-out from the TalkTalk hack last year, which contributed £42m to the £83m exceptionals charges which left the company's full-year profits at £14m down from £32m. However, she also stated that TalkTalk had “bounced back strongly” with 148k new subscribers and churn at its lowest level ever. 

T he chief executive of TalkTalk has dubbed BT’s £6 billion package of investment in faster broadband “a shameless attempt to bribe the regulator into being nice to them”.

Dido Harding launched her attack on BT, the owner of most of the UK’s telecoms infrastructure, as she applauded Margrethe Vestager, the European Comissioner who yesterday blocked Three’s merger with O2.

She said British regulator Ofcom should now show the same steel by hiving off Openreach from BT.

“We’ve been absolutely clear from the beginning that [a merger] would have been extremely bad for consumers. Consolidation from four [mobile operators] to three is bad news,” she told the Standard.

BT responded: “The whole industry, including TalkTalk, will bene fit from that investment as will consumers and businesses across the UK.”

Harding made her comments as she revealed the full impact of last year’s cyber attack on Talk Talk, in which 100,000 customers had their details stolen.

Full-year profits at the telecoms group halved, falling from £32 million to £14 million after exceptionals of £83 million.

The budget telecoms and broadband group said £42 million of exceptionals were down to October’s cyber attack, including the cost of supplying customers with free TV, phone and data upgrades to compensate them for the distress caused by the breach.

However, Talk Talk said it had “bounced back strongly” from the attack, with 148,000 new subscribers joining in the last quarter, while the rate at which customers were leaving — the churn — was also at its lowest ever.

Sales at the FTSE 250 company came in ahead of expectations, rising 2.4% to £1.84 billion.

Harding said: “Our customers really appreciated our open and honest approach to dealing with it.”

The dividend, which some had suggested could be under threat, is up by 15%.