BT agrees rescue deal to save TalkTalk from administration

BT Group has agreed a rescue deal to buy TalkTalk’s consumer and wholesale businesses out of administration in a move protecting telecoms services to millions of households and vital public services.

The telecoms giant said it had stepped in to save TalkTalk and its PlatformX Communications (PXC) business from collapse in a “genuinely unprecedented situation” that could have impacted telecoms for 2.5 million customers.

BT said the deal will “protect continuity of service for its 2.5 million customers, avoiding the risk of material harm to vulnerable customers and key emergency services”.

Exterior of TalkTalk offices in west London — TalkTalk has 2.5 million customers (PA)

TalkTalk’s customers include vulnerable households, as well as connections that support critical national infrastructure providers across health, emergency services, defence, education, transport, banking and government.

Administrators at Alvarez & Marsal Europe said the sale will see all 900 employees at TalkTalk’s consumer and broadband business and PXC transfer to BT as part of the deal.