BT agrees rescue deal to buy broadband operator TalkTalk

Image source, Getty ImagesByMitchell LabiakBusiness reporterPublished5 October 2026, 07:37 BSTUpdated 1 hour agoThe UK's biggest broadband provider, BT, has agreed to buy rival operator TalkTalk to save the company from collapse.

The takeover would end of months of speculation over the future of TalkTalk and mean services for its millions of customers will continue as normal.

BT chief executive Alison Kirkby said it provided "a safety net" for those who rely on TalkTalk. The administrator, Alvarez & Marsal, said it also provided certainty for TalkTalk's 900 staff.

However, Virgin Media called the deal a "stitch-up" which allows BT to "tighten its grip" over the market. The government has given itself the power to have the final say on the takeover, citing its importance to critical public services.

TalkTalk has 1.5 million retail customers and one million wholesale customers across the UK.

BT's Kirkby told the BBC's Today programme: "Two and a half million customers, including vulnerable households, and key emergency services might have lost their services if Talk Talk had failed, which it was on track to do.

"So BT stepped in as we were the only viable option to take the business forward."

Ernest Doku from comparison website Uswitch said the deal means "nothing changes today".

"Your broadband and landline carry on as normal, and there is nothing you need to do right now," he added.

However, he said that BT should explain "quickly and plainly what this means for contracts, prices and service in the future, so nobody is left guessing".

The regulator, Ofcom, says broadband customers should have the right to leave a contract without an exit fee, external if a new owner puts the price up beyond what was in the contract.

TalkTalk began as a challenger to BT in the broadband market. It was listed on the London Stock Exchange, but was taken over by private equity in 2021.