Failure to fix broken billing system could result in a big fine for TalkTalk

The UK’s largest provider of residential broadband, TalkTalk, could soon face serious fines for its breach of telecoms rules by sending out what has been seen as bogus bills to its customers.

Broadband provider TalkTalk, became the largest provider of residential broadband in the UK back in May 2009 with a customer base of more than 4.25 million subscribers, which equated to 25 percent of the UK’s broadband market, following its acquisition of rival internet service provider Tiscali for £236 million.

The CEO of Carphone Warehouse, Charles Dunstone, said he was happy with the purchase of Tiscali and was quoted as saying “We know it well and the fit with TalkTalk is perfect” at the time of the acquisition.

The latest news that TalkTalk has been sending its customers what is being seen as bogus bills, however, may force the CEO to reconsider his claims, with the company now facing possible fines of as much as £139 million.

In a recent press release the UK telecommunication regulator Ofcom advised “TalkTalk and Tiscali UK to stop breaching telecom rules or they could face further enforcement action, including a possible financial penalty.”

Further action could be taken by the regulator if TalkTalk fail to comply with its requests by the 2nd December and the company has also been told to refrain from using collection agencies or taking any form of legal action against either existing or former customers for debts that do not exist. TalkTalk has also been told to pay for any legal costs incurred by customers due to these incorrectly issued bills.

The issuing of bills to customers for services that they did not receive by TalkTalk has resulted in Ofcom receiving more than 1000 complaints in this last year alone.

Source – Spectrum.ieee.org