INCA warns BT’s TalkTalk takeover could reduce broadband competition in the UK

The Independent Networks Cooperative Association (INCA) has warned that BT’s proposed £400 million acquisition of TalkTalk could reduce competition in the UK broadband market, potentially leaving consumers and businesses with less choice and higher prices.

The organisation, which represents independent broadband network providers, has called on regulators to ensure the deal does not give BT an unfair competitive advantage over smaller rivals.

The concerns follow BT’s announcement that it intends to acquire TalkTalk Consumer and its wholesale business, PlatformX Communications (PXC), in a deal that has already attracted criticism from other major players in the telecommunications industry.

Concerns over competition and consumer choice

INCA chief executive Paddy Paddison said the proposed takeover could undermine the competition that has developed in recent years, particularly through the growth of alternative broadband networks, commonly known as altnets.

These independent providers have helped challenge the dominance of established broadband companies by investing in their own full-fibre infrastructure and offering consumers and businesses alternative services.

Paddison warned that combining BT and TalkTalk could weaken this competition, reducing the options available to customers in the future.

INCA acknowledged the importance of protecting TalkTalk’s customers and maintaining services for organisations that rely on its infrastructure, including emergency services, schools and hospitals.

However, the organisation believes that ensuring continuity of service should not provide BT with an opportunity to strengthen its market position at the expense of competing providers.

Questions over the role of regulators

The proposed acquisition has attracted scrutiny because of BT’s existing position in the UK broadband market through Openreach, which operates much of the country’s fixed-line telecommunications infrastructure.

The Competition and Markets Authority (CMA) is examining the deal following government intervention, which seeks to ensure that its implications for the public interest are considered.

INCA has expressed concern that the timetable for the investigation could limit the regulator’s ability to assess the full competitive impact of the acquisition.

The CMA has been asked to report its findings to Culture Secretary Lisa Nandy by 19 October 2026.

Meanwhile, Ofcom has indicated that it is aware of the competition issues associated with transferring approximately 1.5 million residential wholesale broadband customers and one million business wholesale customers into BT Group.

The regulator has said it will monitor the transition and continue applying existing regulatory requirements to the companies.

INCA, however, says it still wants greater clarity about what safeguards the CMA might impose if the acquisition proceeds.

Fears over independent fibre networks

Another significant concern is the potential impact on independent broadband infrastructure providers.

TalkTalk already uses Openreach’s network, but it also purchases services through CityFibre and other alternative network operators.

INCA wants assurances that BT will not move TalkTalk customers away from these independent networks and towards Openreach following the acquisition.

Such a move could affect the commercial prospects of alternative network providers, many of which have invested heavily in building full-fibre broadband infrastructure across the UK.

Paddison said the industry needs a clearer understanding of how BT intends to manage existing wholesale arrangements and whether customers will continue receiving services through the networks they currently use.

The association is also seeking clarification on what the takeover could mean for customer contracts, pricing and service provision.

Virgin Media O2 also criticises the deal

INCA is not the only organisation to have raised concerns about the proposed acquisition.

Virgin Media O2 has also criticised the transaction, describing it as a deal presented as a rescue operation that could have negative consequences for competition.

The company has called on the government to support a more detailed examination of the acquisition.

The government’s intervention reflects concerns about TalkTalk’s financial position and the importance of maintaining services for its customers. However, critics argue that the circumstances surrounding the deal should not prevent a proper assessment of its long-term effects on the broadband market.

BT’s acquisition is intended to secure TalkTalk’s consumer and wholesale operations, but the transaction has raised wider questions about the future structure of the UK telecommunications industry.

What could the deal mean for broadband customers?

For consumers and businesses, the central question is whether the acquisition will affect broadband prices, service quality and the availability of competing providers.

Supporters of a competitive broadband market argue that independent networks play an important role in keeping established providers under pressure to offer attractive prices and improve their services.

If BT gains greater control over wholesale broadband customers and the arrangements through which they access different networks, smaller providers could face additional challenges.

However, the precise effects will depend on how the acquisition is implemented and whether regulators introduce measures to protect competition.

INCA is therefore calling for greater transparency over BT’s plans and stronger assurances that the takeover will not undermine the independent networks that have helped expand broadband choice across the country.

With the CMA’s deadline approaching, attention is now turning to whether the government and regulators will address the industry’s concerns before deciding how the acquisition should proceed.