Tesco in trouble: What the TalkTalk sale means for you

It saw better-than-expected Christmas sales and has just launched its latest round of price cuts, but Tesco is closing 43 stores, not opening 49 planned stores, closing its staff pension scheme, making £250m of cuts, reducing overheads by 30 percent and selling off its broadband, home phone and TV services. Sounds to us as though Tesco is in financial trouble. So how do these changes affect you, the Tesco Broadband, Homephone, Mobile or Blinkbox customer? Also see: What's the best broadband ISP in the UK? 

Tesco Broadband & Homephone sold to TalkTalk: What it means for Tesco Broadband customers 

In a changing broadband market, Tesco feels that TalkTalk is now in a better position than it is to provide the best value and service. Also see: Find the best broadband deals in your area. 

Tesco yesterday sold its Broadband & Homephone service to TalkTalk, but for now it will continue to provide the service for some 75,000 Broadband customers and 20,000 Homephone subscribers. Those customers will still be able to earn Clubcard points until the service is transferred; at which point new offers will be open to them as TalkTalks customer. Even after the transfer their Tesco.net email service will continue to function as usual. 

For now the price paid and service received will not change. In the next few months TalkTalk will contact customers to offer new services, however. Also see: Broadband Advisor. 

The terms and conditions that customers signed when joining Tesco Broadband still apply, so if they choose not to transfer to TalkTalk a cancellation fee could be payable. If, however, they are now out of contract they are free to switch to whichever broadband provider you prefer. 

The transfer will take place within the next few months, and Tesco has promised to keep customers fully informed and aware of the choices available to them in the meantime. A letter will be sent out to all existing customers. 

It is still possible for new customers to sign up to Tesco Broadband, but they should note that their service will be transferred to TalkTalk later this year. 

Any queries should be directed to [email protected] or via 0345 30 400 30. 

Tesco Broadband & Homephone sold to TalkTalk: What it means for Tesco Mobile customers 

Tesco remains committed to its mobile business, and there are no plans to sell off this asset. Tesco Mobile customers are not affected. Also see: Tesco Hudl 2 review. 

Tesco Blinkbox sold to TalkTalk: What it means for Blinkbox customers 

Part of the deal with TalkTalk includes Blinkbox, Tesco's video-on-demand service. TalkTalk is said to be integrating Blinkbox into its TV business immediately, and is already working on an app for customers to access paid-for content. 

You don't need to be a Tesco or TalkTalk customer to use Blinkbox, however: you can use Blinkbox with any UK internet connection to buy or rent movies and TV episodes. 

For those who are existing Blinkbox customers, you will continue to be able to access any content previously bought, and you will continue to earn Clubcard points on those purchases. Any voucher codes or eVouchers will also continue to work. Should this change TalkTalk will inform you in advance. 

In time Blinkbox will also come to TalkTalk's YouView TV box.

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