TalkTalk relaxed over Tesco threat

Broadband Genie have undertaken a wide ranging interview with TalkTalk's senior director of products and strategy Sylvain Thevenot which covers a lot of customer service and outsourcing issues - in summary they're happy with the technical ability and accents of their Indian agents, they need to improve the phone lines and are working on this now with no current plans to bring all technical support calls back from India - but also covered the subject of Tesco's re-entrance to the broadband market after their link-up with Cable & Wireless.

Thevenot seems very relaxed about the threat of Tesco:

Any comment on Tesco re-entering the fixed-line broadband market?

"Tesco is very interesting. We generally welcome competition, as we are a pretty aggressive company and we are confident about the quality and value of our products. We also think we are in a good position because we have the largest unbundled network: we have a good position, we're not scared, but it’s fair to say we'll be watching closely and will be careful, as Tesco plays very much in the same area, of value.

"Is it going to change the market? Probably not, because it's coming in quite late. But can it make an impact? Yes. And impact our sales? Potentially."

I wonder if the people at TalkTalk towers are underestimating Tesco? One in every six retail pounds in the UK is spent with them and they'll be quite happy to invest - at a loss initially if necessary - the monies needed to be a big hitter with a critical mass customer base given the potential revenues in the sector.

Their history of making a real play in other sectors would suggest that you underestimate Tesco at your peril.