The Secretary of State for Digital, Culture, Media and Sport has
today taken urgent action under Enterprise Act powers to
intervene in BT Group's acquisition of TalkTalk, amid concerns
that any collapse of TalkTalk could cause sudden disruption to
vital phone and broadband services, putting lives, public
services and vulnerable customers at risk.
TalkTalk has been seeking a buyer for its consumer and wholesale
businesses following a period of financial difficulty. After an
extensive open commercial bidding process, a number of potential
buyers have been unable to reach an agreement on the sale for the
whole of the business. BT Group has now reached a deal to acquire
the company.
Given the large number of customers who relied on TalkTalk's
services, including large numbers of vulnerable people, DCMS has
been closely monitoring the situation.
The Secretary of State's priority is to guard against the risks
to life and the continuity of the supply of telecommunications
that may arise if TalkTalk's connectivity is disrupted. Its
networks support critical infrastructure and services that people
and public bodies rely on every day including calls to emergency
services, ambulance and hospital communications and medical
alarms. A sudden disruption would also impact businesses across
the country that depend on reliable telecoms networks.
Given these exceptional circumstances and the potential risk to
life and public services, the Secretary of State is therefore
today issuing a Public Interest Intervention Notice under section
42 of the Enterprise Act 2002. The notice will allow the
Secretary of State to consider the wider public interest once the
CMA has reported on competition concerns.
TalkTalk's customers do not need to take any action. Services
should continue as normal while the acquisition process is taken
forward. Customers will be contacted directly if there are any
changes they need to know about.
DCMS Secretary of State said:
Phone and broadband services are vital national infrastructure.
If TalkTalk services fail, there is a genuine risk to life and
public services including to hospitals, schools and emergency
care.
These are unprecedented circumstances that require action
now.That is why I am acting with urgency to ensure that impacts
on public health, critical national infrastructure and supply to
vulnerable customers are fully considered as part of this
process.
The Secretary of State has specified that the CMA should report
back to her by 19th October 2026.
ENDS
Notes to editors
The existing powers in the Enterprise Act are being used on
grounds relating to the need to maintain the ability to deal with
public health emergencies. The Secretary of State is also
intervening on public interest grounds relating to the need to
maintain the continuity of the supply of telecommunications
services for the purposes of preventing disruption to the economy
and society of the United Kingdom, including, in particular,
disruption to public services, critical national infrastructure,
and supply to vulnerable customers.
In relation to this public interest ground, the Secretary of
State will as a matter of urgency lay an Order before Parliament
which will amend the Enterprise Act to include these new grounds
of intervention. The Enterprise Act allows for the Secretary of
State to rely on these new proposed grounds in her initial
intervention.
The Secretary of State needs to be satisfied that there is or may
be one or more public interest consideration, as set out in the
Enterprise Act 2002 (or, which in her opinion, ought to be),
which is relevant to the merger. In this case, the Secretary of
State is issuing the PIIN because she has
judged that there may be public health, continuity of the supply
of telecommunications services, economic and societal
considerations which are relevant in consideration of this
merger.
