The 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.
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.”