Press release -
Post Office signs deal to sell broadband and home phone service to Shell Energy
- Sale of business enables Post Office to concentrate and invest in core mails, banking, bills and travel products
- Post Office has a strong customer base built over many years in the telecoms market
- Customers will be automatically migrated to the new supplier on 15 March with no service interruption
- Postmasters will receive payment
Post Office has signed a deal to sell its telecommunications business to Shell Energy Retail.
Following a strategic review selling the telecoms business will allow the Post Office to focus and invest in its core products and services– mails and parcels, cash and banking, bill payments and travel.
Nick Read, Chief Executive at the Post Office, said:
“This is a good deal for Post Office Limited, our postmasters and our customers. It allows us to concentrate and invest in our core products while ensuring payments to postmasters and continuity of service to customers.”
The Post Office telecommunications business supplied approximately 500,000 customers with home phone and broadband services and has been operated by the Post Office since 2007. The Post Office has a long history in the telecoms industry which helped make this an attractive purchase for Shell Energy.
Post Office and Shell Energy Retail will be writing to customers to inform them of the sale and that they will be moving across to Shell Energy Retail on 15 March, but any change of provider is expected to be seamless transition. Customers will continue to use their current equipment, will not need to take any action, and shouldn’t see any changes to the services they receive. Customers can also continue to pay their bills in Post Offices if they currently do so. The existing customer contact centres will remain in place and ready to answer any queries customers may have.
Postmasters, who would have previously benefited from signing-up customers to Post Office’s telecoms business will receive a payment.
Director of Telecoms, Meredith Sharples added:
“Post Office has built a successful and profitable telecoms business and has recently seen a significant growth in the fibre broadband products. The transfer to Shell has been planned to minimise disruption, with customers continuing to use their existing equipment and support teams.”
“We will also be making a significant one-off payment to Postmasters who have previously sold telecoms products.”
Ends
Notes to Editors
The sale has been agreed and initial contracts signed. A period of further due diligence now needs to take place before completion in 6 weeks.
The Post Office will cease selling telecommunication products Online and in Post Offices with immediate effect.
The sale price remains commercially confidential.
PJT Partners acted as sole financial advisor to the Post Office in connection with the transaction
Post Office did not operate its own infrastructure but instead resold the TalkTalk LLU network
Customers who have queries about the home phone or broadband service they receive should visit www.postoffice.co.uk/broadband-help or call the existing support number 0345 600 3210.
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About the Post Office
- With over 11,500 branches, Post Office has the biggest retail network in the UK, with more branches than all the banks and building societies combined.
- Post Office is helping anyone who wants cash to get it whichever way is most convenient. Partnership with over 30 banks, building societies and credit unions means that 99% of UK bank customers can access their accounts at their Post Office.
- Cash withdrawals, deposits and balance enquiries can be made securely and conveniently over the counter at any Post Office; and the biggest investment by any organisation or company in the last decade is being made to safeguard 1,400 free-to-use ATMs across the UK.
- Post Office is simplifying its proposition for Postmasters with a focus on itscash and banking; mails and parcels; foreign exchange; andbill paymentsservices.
- Researchhas found that visits to the Post Office help drive another 400 million visitors to other shops, restaurants and local businesses equating to an estimated £1.1 billion in additional revenue for High Street businesses.
- 99.7% of the population live within three miles of a Post Office; and 4,000 branches are open seven days a week.
