New data shows impact of cost-of- living squeeze on UK consumers' broadband shopping habits

THINKCX MARKET INTELLIGENCE REVEALS ATYPICAL
GROWTH IN TALKTALK MARKET SHARE VS. BT AS
INFLATION CONTINUES TO RISE

The latest ThinkCX market share data up to the end of September 2022 suggests subscribers are reacting
to inflation's pinch by opting for less expensive internet alternatives. Among the major UK ISPs, TalkTalk (the brand primarily appealing to the budget-conscious) is beginning to win small but noticeable market share gains against BT, the perceived premium brand. "In August 2022, BT experienced its worst monthly performance in the last 2 years, extending a negative growth trend that began nearly 1 year ago. And now September's data shows this negative run continuing. The reverse was true for TalkTalk over the same period, completely flipping what had become the de facto win/loss script in relation to BT."

The cost of living has soared in the UK over the past 12 months. As UK consumers select and switch
broadband internet service providers in this high inflation environment, market intelligence company
ThinkCX has comprehensively mapped the market share gains and losses of these two leading brands to serve as a reasonable indicator of the net impact of inflation on consumer behaviour in the broadband
market. The graph below shows recent market share fluctuations against the backdrop of relentless cost of living increases in the UK.

Turnaround in fortunes as winners become losers and vice versa As we can see from the UK market share growth graph, BT had been enjoying consistent and substantial month-over-month market share gains prior to February 2021 (when the inflation rate began to rise dramatically). BT was able to carry its winning momentum forward through most of 2021, but its growth tailed off considerably after September as inflation reporting appeared more frequently in the media. Small month-over-month losses became commonplace for BT in 2022, and in August 2022, the company experienced its worst monthly performance in the last 2 years, extending a negative growth trend that began nearly 1 year ago. And now September's data shows this negative run continuing. The reverse was true for TalkTalk over the same period. TalkTalk has consistently lost market share throughout the 2021 calendar year and into 2022. But the magnitude of their losses declined abruptly after February 2022, and this past summer TalkTalk was finally able to post growth figures in 3
successive months, completely flipping what had become the de facto win/loss script in relation to BT.
Why BT and TalkTalk UK market shares point to increased price sensitivity.

Of the top five broadband ISPs in the UK market, BT best fits the profile of a premium service provider
that emphasises quality over price. BT's marketing messages are built on the concepts of fast and
reliable service, with connection speeds that will "future-proof" families as more and more household
devices come online. On the other end of the pricing spectrum is TalkTalk, whose messaging is centred
around the concept of value and appeals to price-conscious subscribers.

In a season of extraordinary inflation, is TalkTalk's budget-friendly brand promise the key factor leading
to this remarkable reversal of fortunes in the UK broadband market? Of course, there are many
confounding factors that could be considered, and there are other influential players in the ecosystem,
but it does make for a logical and interesting observation. Will the trend continue? As time goes on, we'll continue to detect and report monthly market share dynamics and determine whether UK internet subscribers continue to demonstrate a willingness to switch to lower-priced ISPs in order to mitigate the impact of inflation.

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About ThinkCX
ThinkCX is a data science company focused on serving the communication service provider industry with actionable customer insights from the analysis of large quantities of digital consumer signals. We
specialise in the accurate detection and granular measurement of service provider growth across
mobility and broadband markets. Our breakthrough approach enables us to detect market share without requiring our clients to share sensitive data, without directly contacting subscribers or using personal or private information, and without leveraging unreliable small survey panels. Rather, we have developed a privacy compliant, technology-oriented approach that daily analyses billions of anonymous, digital signals that are licensed from thousands of mobile apps. The tactical application of our machine-learning technology assists our clients to not only acquire new subscribers, but also optimize the lifetime revenue of each existing subscriber. ThinkCX currently provides advanced data analytics for most of the top-tier telecom service providers in our domestic Canadian market and is expanding into new country markets such as the UK, Germany and Italy.
www.thinkcx.com

This release was published on openPR.