Secretary of State for Digital, Culture, Media and Sport intervenes under Enterprise Act powers in TalkTalk deal

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 Lisa Nandy 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

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.