BT has agreed a rescue deal to save TalkTalk from administration in a move protecting telecoms services used by millions of households and vital public services.
The telecoms giant has agreed to buy TalkTalk’s consumer and wholesale businesses, including PlatformX Communications (PXC), after stepping in to prevent the companies from collapsing.
BT said it had acted in a “genuinely unprecedented situation” that could have put telecoms services for 2.5 million customers at risk.
The deal is designed to protect customers from disruption, including vulnerable households and organisations relying on TalkTalk connections for essential services.
BT said the agreement will “protect continuity of service for its 2.5 million customers, avoiding the risk of material harm to vulnerable customers and key emergency services”.
TalkTalk customers include vulnerable people and households, while its network also supports connections used by critical national infrastructure providers.
These include organisations across health, emergency services, defence, education, transport, banking and government.
The rescue deal will also protect jobs, with administrators confirming that all 900 employees working across TalkTalk’s consumer and broadband business and PXC will transfer to BT.
Administrators at Alvarez & Marsal Europe said the sale would see the 900 staff move across to BT as part of the deal.
The agreement comes as TalkTalk faced administration, with BT stepping in to secure the future of its consumer and wholesale operations and avoid potentially serious disruption to customers.
The deal is particularly significant because of the number of households and essential organisations relying on TalkTalk services.
BT’s intervention means customers should continue to receive telecoms services while the businesses transition to their new ownership.
The company said its priority was maintaining continuity of service and protecting customers who could have been particularly affected by the collapse of TalkTalk.