TalkTalk has announced new broadband pricing, a move that simplifies the proposition materially. This includes the ending of line rental (per announced Ofcom/Advertising Standards requirements), and offers two main products
(standard broadband and Fibre), with a free mobile SIM card for both, and bolt-on options for Calls, TV and Mobile. For some customers this will be a price increase and a cut for others. Customers do have the option to keep their existing tariff or migrate to the new ones, but we note a ca10% increase to legacy pricing, and new tariffs have an 18 months fixed price guarantee. This should support our 3.5% annual price increase estimates. We rate TalkTalk OW with a 350p price target.