National security concerns raised amid fears broadband giant TalkTalk could go into administration within days
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By NOOR QURASHI, NEWS REPORTER
Published: | Updated:
National security concerns have been sparked amid fears broadband giant TalkTalk could stop operating as early as next week.
The company, which provides both consumer broadband and secure services for large organisations, risks appointing administrators within days.
It is feared disruption to services could affect the Ministry of Defence and weaken Britain's security.
The UK's national security is said to be partly dependent on TalkTalk systems, according to telecoms sources.
Security officials responsible for the critical infrastructure are reportedly in close contact with civil servants and telecom regulators to ensure TalkTalk continues operating.
TalkTalk is Britain's fourth-biggest broadband provider with around 1.5million customers.
On Thursday night the company and its advisers were still hoping to complete a complicated plan to sell off TalkTalk's two arms, it was reported last night.
However, talks to offload its wholesale business, PXC, to Octopus Investments for around £300million had reportedly stalled.
The company, which provides both consumer broadband and secure services for large organisations, risks appointing administrators within days (file image)
TalkTalk is understood to be in significant arrears with BT's network arm, Openreach, with many other bills also due at the end of the month.
One option under discussion is transferring control of TalkTalk to BT in the event of an insolvency – marking the end of an era for the broadband giant which began as part of Sir Charles Dunstone's retail empire Carphone Warehouse.
Even if solvent sales of TalkTalk's businesses can be saved, its lenders are expected to lose hundreds of millions of pounds.
Shareholders, including Sir Charles and lender Ares Management, could also inject more money into the company – having already provided £350million in emergency payments over the last two years.
Officials are considering whether keeping TalkTalk online during an administration could incur significant costs to the taxpayer and how the business might be transferred to a new owner without disruption.
It comes as the company's customer base has been eroded in recent years due to the rollout of more efficient full-fibre broadband.
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