BT/EE, Virgin Media O2, Vodafone/Three, Tesco Mobile, TalkTalk, Sky and industry body Comms Council UK (CCUK) have committed to a new anti-fraud measures ahead of the UK Government’s forthcoming Fraud Strategy announcement.

Data shows that 96 per cent%of mobile users decide whether to answer a call based on the number displayed on their screen, with three-quarters unlikely to pick up if it’s from an unknown international number.   Advanced call tracing technology will also be rolled out across mobile networks to give police the intelligence to track down scammers.

There are  commitments to boost data sharing with the police whch will show which mobile networks  let scam calls slip through.

Victims will get faster support from phone networks. Help times will be reduced slashed to two weeks

The new pact follows recent action by the UK government, in partnership with the US, to disrupt major online fraud networks with targeted sanctions on scam centres in Southeast Asia. 

Traceback system

The telco providers pledge to support the development of a Traceback system that would allow operators to identify the origin of suspicious or fraudulent calls as they are connected acros networks. The Charter also calls for data-sharing between telecoms, banking and technology sectors, alongside improved public awareness campaigns and more support for victims.

The CCUK-charter will develop best-practice guidance for business victim support. The aim is to improve how service providers detect, respond to and communicate fraud-related threats with commercial customers.

Significant step

Tracey Wright, Chair of Comms Council UK, said the Telecommunications Fraud Charter marks “a significant step forward” in the industry’s response to criminal activity.

“This initiative brings together government and industry to deliver change for consumers and businesses.The overall message around collaborative data sharing, advanced technology solutions, and unified public messaging will help disrupt fraudulent activity at scale.”

She said sector-wide intelligence sharing continues to demonstrate “the positive impact” of coordinated action.

“Aligning our efforts through this Charter will build building a safer, more trusted communications environment ”

Minister for Fraud Lord Hanson said “Spoofed calls allow scammers to deceive the public with fake identities and false promises. This government is committed to tackling fraud.

“In a major upgrade of our mobile network, call spoofing will be eliminated within a year stripping away the tools scammers use to cheat people out of their hard-earned cash. 

“We’re stepping up our defences to protect victims and make sure the UK is the hardest place in the world for scammers to operate

Further measures targeting scams across digital platforms, banking and telecoms later this month.

The regulator’s annual review of telecoms service quality revealed that companies outside the big four mobile networks—EE, O2, Three, and Vodafone—are scoring impressively on customer satisfaction metrics.

Tesco Mobile and giffgaff lead the mobile sector

Tesco Mobile and giffgaff led the mobile sector with standout overall satisfaction scores of 94%, well above the industry average. In contrast, major players O2 and Vodafone lagged behind, scoring 85% and 84% respectively.

When it came to handling complaints, Tesco Mobile again stood out with a satisfaction score of 68%, comfortably above the average, while Three fell short at 51%. Customers of Lebara, Tesco Mobile, and giffgaff were also more inclined to recommend their mobile provider to friends—another indicator of high satisfaction.

Complaints drop overall

The number of complaints made to Ofcom dropped overall in 2024, but disparities remain. O2 recorded the highest number of complaints per 100,000 customers (23), while Tesco Mobile had the lowest (4), underscoring the performance gap between the major operators and smaller challengers.

In the broadband market, Plusnet emerged as the top performer with a 91% satisfaction rating, whereas TalkTalk customers reported the lowest satisfaction at 77%. EE (66%), Plusnet (65%), and Sky (63%) all ranked above average for handling complaints, while TalkTalk (54%) and Virgin Media (53%) fell behind.

Broadband speed satisfaction remained strong, with 83% of customers content with their service—unchanged from 2022. Notably, satisfaction with value for money improved, rising from 62% in 2022 to 73% among standalone broadband users in 2024.

NOW Broadband registered the highest volume of complaints to Ofcom per 100,000 customers (65), while Sky had the lowest complaint rate in the broadband category, at 21.

The report highlights a continuing trend: smaller and challenger brands are outperforming established giants in key aspects of customer service and satisfaction.

These will be the B2B Wholesale Platform, TalkTalk Consumer, and TalkTalk Business Direct. The new companies will become operationally separate on November 1, and legally separate from March 1, 2024.

Each division will be overseen by TalkTalk Group CEO Tristia Harrison who will chair a new Oversight Board until March 1. After this, she will become a non-executive director of the B2B Wholesale Platform.

The current MD of TalkTalk Business Wholesale Tom O’Hagan will be CEO of the Wholesale Platform. Adam Dunlop, the former managing director of iD Mobile and current MD of TalkTalk Consumer and Supply & Partnerships, will be the CEO of TalkTalk Consumer. Ruth Kennedy continues as managing director of TalkTalk Business Direct.

The demerger will allow each company to focus on their own customer bases, eliminate operational complexity and simplify investment on a standalone basis.

The three demerged businesses will be based in Salford and continue to be supported by existing TalkTalk Group shareholders.

TalkTalk was the most complained-about landline and broadband provider, with an increase in complaints for both of these services since last quarter, says Ofcom. Complaints were mainly driven by customers’ experience with faults, quality of service and getting services connected, as well as how their complaints were handled. Sky had the fewest complaints among broadband providers, as well as becoming the outright least complained-about landline provider.

BT  also attracted the most complaints about pay-TV. The main causes for complaints were issues around billing, pricing and charges. Sky received the the fewest pay-TV complaints.

“The slight increase in complaints across all services shows providers still have work to do when it comes to the quality of service they offer their customers. We’re pleased to see an improvement in Shell Energy’s performance following their previous appearances at the bottom of some of these tables, and in response to us engaging with them on improvements. However, these figures show they and other providers should strive for further progress.” said Fergal Farragher, Ofcom’s Consumer Protection Director.

TalkTalk has announced a new partnership with Telecom Acquisitions Ltd (TAL) in a bid to strengthen its consumer wholesale strategy.

The collaboration aims to achieve the growth of TAL through growth and continuing the successful acquisition of small to medium residential customer bases.

Day-to-Day operations will stay the same, and TalkTalk Consumer Wholesale Services managing director Nick Gunga will join the board to support TAL’s future growth.

Nigel Barnett, Telecom Acquisitions CEO said: “Over the last 30 months we have made four acquisitions supported by aggressive organic growth, with the whole industry focusing on fibre to the property to be aligned with a company with presence in over 3000 exchanges across the country and agreements in place with the leading fibre Altnets means we can offer our clients the very best service from any major provider.”

Nick Gunga added: “We are pleased to be increasing our support to the partnership with Telecom Acquisitions (TAL) as it continues to grow. This is part of our continuing long-term growth strategy of TalkTalk Consumer Wholesale Services, the fastest-growing wholesale provider in the market.”

In June 2021, Virgin Media O2 officially launched as two of the biggest networks merged to create a company that offers fast, widely available broadband.

At the time of the merger, it combined O2’s 34 million mobile users and Virgin Media’s 5.3 million customers in a £31 billion deal and outlined its plans to invest at least £10 billion over the next five years.

Just over a year later, the brand has achieved milestones in connectivity and gigabit rollout, and has even introduced a joint venture called ‘Volt’ which rewards customers for having an O2 pay monthly plan and Virgin Media broadband.

CCS Insight director of consumer and connectivity Kester Mann says it may be too early to say if the Virgin Media O2 merger has been successful, but that it has achieved a lot in 15 months.

“It’s launched the Volt proposition, focused on gigabit broadband rollout, established the fibre joint venture recently, and it’s steadily making inroads into areas like private networks and small businesses,” he says.

“It’s done a good job in making a presence in the market and pushed hard on the marketing and brand awareness.”

Challenges from Ofcom and CMA

Counterpoint Research VP and research director Peter Richardson and associate director Jan Stryjak agree that it may be too early to tell, but it appears to be going well.

“A recent study by RootMetrics revealed that all four major UK mobile operators, including Virgin Media O2, improved download speeds, reliability and latency of their networks in the first half of 2022,” both says.

Meanwhile, IDC research manager Richard Thurston is more certain on the merger’s success.

“We’ve seen Virgin Media O2 win deals in mobile private networks, which is a significantly growing market, and one which we’re excited about because of the multitude of use cases and the innovation in this space,” he says.

Ofcom and the Competition and Markets Authority gave Virgin Media O2 the green light to consolidate despite former potential mergers being blocked.

Three’s attempted acquisition of O2 in 2015 was blocked, but it seems that regulators are becoming more lenient in an ever-changing industry.

“Ofcom is perhaps softening its stance and will want to see the mobile telecoms market thrive despite the turbulent pressures the industry is facing,” Thurston says.

But Mann believes that Ofcom and the CMA awarded Virgin Media O2 the go-ahead because both companies specialise in different aspects of the market.

“The main thing is that we’re talking about a predominantly mobile company and a predominantly broadband company, so it’s two separate markets and no concern that there is a player that can dominate in one particular market,” says Mann.

“The case with Three and O2 was that it would create a significant player in the mobile market and that’s why it got blocked by the CMA, but broadband to mobile mergers should get a good chance of getting through.”

Richardson and Stryjak agree that the Three and O2 merger was most likely blocked because they are both mobile network operators, but they also believe that the regulators are starting to change their views on mergers in general.

“We suspect regulators are more lenient to mergers following the COVID-19 pandemic, which highlighted how important connectivity is to people.

“If a merger promises to improve connectivity and quality of service, then regulators seem to be happy to allow it these days.”

Three and Vodafone to merge

In recent years, consolidation in the telecoms space has become more common, and Thurston says this continues to be a trend across Europe.

“As recently as a month ago, Orange and Masmovil in Spain signalled their intent to combine their operations,” he explains.

“Telecoms is capital intensive, and operators are facing pressure to digitally transform and remain relevant as consumers and businesses face a multitude of network choices.”

Mann adds that the deal between Orange and Masmovil is mobile to mobile, and if this is approved then it gives confidence for other mobile operators to merge.

One merger that could go ahead pending regulatory approval is between Three and Vodafone, which would combine the UK’s third and fourth largest mobile network operators.

“The two companies have made no secret of their interest to consolidate,” Mann says.

“The leading motivation to join forces is scale. In telecommunications, the most successful companies tend to be the largest; bulking up would offer many synergies and cost-saving opportunities.

“Under the status quo, it’s hard to see either operator growing enough organically to get close to challenging BT and Virgin Media O2 for size in the UK.”

But he explains that the companies need to make a deal that works for both, and that regulation will be a major hurdle.

Meanwhile, Thurston thinks Three needs to offer more if it wants to merge with an operator like Vodafone.

“As a self-styled connectivity player, Three has achieved a reasonable set of results, primarily through growing consumer market share,” he says.

“But this is simply not enough going forward as successful telcos evolve to become digital service providers.

“Three will need to grow its business offering as a priority.”

Reasons to consolidate

Three UK’s CEO Robert Finnegan and Vodafone’s chief executive Nick Read have been vocal about the need for more consolidation within the telecoms industry, so it is no surprise that the two mobile companies are in talks about a potential deal.

In a previous Mobile News article in 2020, Finnegan spoke about the need for consolidation: “I think there are too many players; I don’t think it’s good for competition or the customer because investment into the industry is not as much as it would be in a more functional market.”

Earlier this year, Read stated that merged businesses could be attractive to investors and that there is a case for Vodafone to consolidate in the UK, Italy and Spain.

It seems that these operators are keen to strike a deal and Richardson and Stryjak believe that merging with another company can benefit operators in various ways.

“With a high-cost, high-capacity network, the important metric for mobile network operators is to have as many paying customers as possible,” they say.

“It’s about economies of scale- the more customers you have, the lower your marginal operating costs will be.”

They also say that from a customer’s perspective, it doesn’t matter who offers the tariffs as long as there is plenty of choice and some competition at wholesale level.

“As radio spectrum is limited, there needs to be strong regulation to ensure that this scarce resource is used properly and ensure fair competition- but otherwise three operators is likely as good as four.”

Mann thinks consolidation can benefit Three and Vodafone as bigger telecoms companies tend to be the most successful.

“There’s more purchasing power and more customers to sell to, so scale is a major reason for consolidation,” he says.

“You look at a competitive market like the UK, taking a player out of the market is one less provider to compete with.

“There’s also plenty of opportunity in terms of pushing into new markets and cost savings from bringing two companies together.”

Customer concerns

But it’s not just the operators that need to benefit from consolidation, customers also need to get the best out of it.

Regulators need to weigh up options to determine the pros and cons of consolidation and the impact it could have on customers.

Richardson and Stryjak believe that there shouldn’t be any downsides from reducing the competition from four to three players, as long as the deal is strong and fair.

“The only issue would be if the merger creates a dominant player, which could impact competition and therefore be bad for consumers,” they say.

“Looking at Q2 2022 mobile connections numbers, Vodafone UK and Three combined would create a player with a market leading 30 per cent share- but this is similar to Virgin Media O2 and EE with a 28 per cent and 26 per cent share respectively.”

Mann says regulators will always thoroughly investigate and analyse the benefits of mergers and reduce competition in the market.

“The argument for consolidation is that potentially having fewer providers means you can be more focused with investments, build out better quality of networks, infrastructure and therefore a better service to customers,” he says.

“The cons would be that this could be an opportunity for operators to put up prices as there are less of them, and could this impact customers?

“We’re already on the back of significant price rises from the spring, so would there be a concern of too much price rise and the competition being harmed to the detriment of customers.”

Potential broadband mergers

Another speculated merger is between TalkTalk and other telecoms companies, as Virgin Media O2, Sky and Vodafone have all been recently linked to the company.

Virgin Media O2 has put in an offer to buy TalkTalk, which would value the broadband provider at £3bn and will put pressure on those who want to offer an alternative offer.

Not much has been reported regarding offers from Vodafone and Sky, but we do know that Vodafone is facing pressure from its investors to consolidate- whether that is with Three or TalkTalk.

Mann explains that the TalkTalk acquisition is speculation at this point in time and that different operators have different motives.

“Virgin Media O2 could make a move because it comes down to scale and more customers as it can access customers that use the Openreach network that TalkTalk uses,” he says.

“For Sky, it would be about being a bigger player and being a threat to BT.

“Vodafone appears to have played this down and may not be in the running anymore, but we know it has ambitions in broadband.”

The acquisition of TalkTalk could change the telecoms space, but this all depends on which company ends up buying it.

Richardson and Stryjak think that if mergers become more common, then the market will end up evolving.

“Ultimately, we likely reach a point where we have a small number of integrated telecom operators that can provide fixed broadband, mobile and TV services,” they say.

“These can be packaged in multiple configurations to provide end customers with a huge range of options to suit particular needs and interests.”

Mann is a bit more uncertain about what the telecoms space would look like if TalkTalk is acquired.

“If it was VMO2 or Sky, they’re fairly premium brands so it would be interesting to see how they position TalkTalk,” he says.

“But TalkTalk customers get good value for money and they’d be keen to ensure that if it was acquired then they can get a similar level of service that they are getting at the moment.”

Virgin Media O2 has put in an offer to buy TalkTalk which would value one of the UK’s biggest broadband providers at around £3bn.

Discussions have begun between the two companies, although sources say this is at an early stage and on a non-exclusive basis. 

Virgin Media O2, who is owned by Telefonica and Liberty Global, submitted a bid for TalkTalk a few weeks ago as reported by Sky News.

TalkTalk’s website says it has 4.2 million customers and 2.4m fibre connections across the UK, and founder and chairman Sir Charles Dunstone and investment company Toscafund believe the company is currently worth £3bn.

Other rivals have hinted that they want to acquire TalkTalk, and the scale of the acquisition would be huge due to TalkTalk’s worth, and a formal offer from Virgin Media O2 will increase the pressure on Vodafone who may launch a counter bid.

The deal will become the latest consolidation in the telecoms market where those in the industry have called for more to be done to find savings to invest in upgrading Britain’s digital infrastructure. 

Means for acquisition 

CCS Insight director of consumer and connectivity Kester Mann commented: “The primary motivation to buy TalkTalk would be to build scale. In telecoms, the most successful companies tend to be the largest and bulking up would offer clear synergies and cost-saving opportunities. 

“As Virgin Media O2 embarks on an expensive upgrade of its entire cable network to full fibre, the more customers it can connect, the more cost-effective this process will be.

“The deal would not only create a bigger rival, but threatens an important source of income for Openreach, for which TalkTalk is a strategically important customer.

“TalkTalk could see itself at the centre of a bidding war with Sky and Vodafone also rumoured to be interested. 

“With the UK ripe for further consolidation amid much speculation of a potential merger between Three and Vodafone, the next big deal is only a matter of time.”

Sky performed strongly across the board in Ofcom’s latest telecoms and pay-TV complaints report.

The telco recorded the least amount of broadband, landline and joint-least mobile complaints during the fourth quarter of last year between October to December.

With an industry average of nine complaints per 100,000 fixed broadband subscribers, Sky only recorded four, ahead of EE (five), BT (seven) and Plusnet with eight.

However Shell Energy with 15 were well-above the industry average, followed by disappointing performances from TalkTalk (14) and Vodafone and Virgin Media with 13 each.

Sky’s the limit

Sky again topped the charts for least complained about provider when it comes to landline with just two per 100,000, edging out EE (three) and BT (five).

Shell Energy and TalkTalk with nine and ten respectively again fell below the industry average of six, along with Virgin Media (eight).

“Today’s figures show an overall decline in the number of complaints made to telecom providers in the last quarter of 2021, which is welcome news,” said Uswitch telecoms expert Ernest Doku.

Doku expects the decline in complaints to be challenged in the coming months however, as recent bill hikes put financial pressure on customers.

“Yet since then, prices have increased significantly across broadband, mobile and pay-TV services, so it’s likely that this trend could change in the coming months, with many consumers unhappy with recent bill hikes.

“Shell Energy continues to be the worst performer on customer service, with complaints for its broadband offering well above the national average. Among the largest providers on the market, TalkTalk and Vodafone in particular have their work cut out to reduce their share of dissatisfied customers.”

Mobile standings

As for mobile Sky Mobile along with Tesco Mobile and EE recorded the least amount of complaints with just one per 100,000.

However those below the industry average of three included Three and Vodafone (both with three) and Virgin Mobile with four.

According to Ofcom, Virgin Mobiles woes were down to its poor handling of complaints (32 per cent), while faults, service and provisioning issues were responsible for 27 per cent of complaints. Billing, pricing and charges accounted for 23 per cent of complaints.

Plan.com has struck a partnership with TalkTalk Wholesale Services to broaden its existing hosted proposition.

The deal has been designed to offer more choice, improved connectivity, value and pricing through the my.plan platform, with the new broadband offering launching from today (March 8).

The my.plan platform has been created to help businesses to connect, configure and control their business communications in one place.

For Plan.com it adds another big name to its list of partners that already includes BT, O2 and EE.

Commenting, Plan.com CEO and co-founder Dan Craddock (pictured) said: “This latest broadband offering will further enhance our hosted proposition and is another positive step towards our long-term vision, providing valued partners and customers with the ultimate unified communications platform.

“TalkTalk will join the likes of BT, O2 and EE, and we look forward to working more closely with their team and our partners over the coming months, to leverage this exciting opportunity.”

TalkTalk Wholesale Services chief sales officer Ruth Kennedy added: “Today’s announcement marks an exciting new wholesale partnership for TalkTalk Wholesale Services.

“We believe that simple, affordable, reliable and fair connectivity should be available to everyone, and we’re delighted to be working with plan.com, a respected channel player within the industry.”

Ofcom’s latest telecoms and pay-TV complaints league tables has been released, with EE performing the best across various metrics.

The quarterly report which focused on complaints made to Ofcom between July and September found that complaints across the board were at all time low levels, according to the regulator.

EE topped the list for least amount of complaints for broadband, mobile and landline complaints per 100,000 customers.

The operator recorded just four broadband complaints per 100,000, followed by Sky (five) and BT (nine).

EE, along with Sky was joint best for landline complaints with just three per 100,000, ahead of Vodafone (four).

And the operator was joint best for mobile complaints with Tesco Mobile, with just one complaint per 100,000, with both retaining this top spot.

Poor performers

However TalkTalk performed badly in the latest report, with the telco scoring the most complaints for broadband, with 17 per 100,000, seven above the industry average of 10. It held this position with Shell Energy.

The firm was also ranked the worst for landline complaints, registering 11, again well above the industry average of six.

As for mobile, MVNO iD Mobile was the worst performing of the bunch with four complaints per 100,000.

With the industry average rated at two, Vodafone, Three and Virgin Mobile (all three), also scored below par.

“Complaints have fallen to a record low, and we expect providers to keep working to achieve the highest standards,” said Ofcom consumer protection director Fergal Farragher.

“If you’re unhappy with your provider, it’s worth shopping around. We’ve made it easier than ever to switch, and you could end up with better customer service as well saving money.”