UPDATE 1-TalkTalk returns to customer growth in June

Thu Jul 26, 2012 3:04am EDT

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LONDON, July 26 (Reuters) - British broadband provider TalkTalk launched a television service on Thursday that will offer catch-up programming, on-demand films and access to BSkyB channels, and which it hopes will accelerate customer growth that turned positive in June.

The company said it would offer a free YouView set-top box initially to customers on its Plus package, who have access to line speeds of 3 MBps or more.

TalkTalk, which competes with BT, Virgin Media and BSkyB, has suffered from a reputation for poor customer service, but it returned to subscriber growth in June, after wet weather hampered connections earlier in the year.

"This is a great base from which to launch our groundbreaking, free, TV service," Chief executive Dido Harding said. "This is TalkTalk at its disruptive best."

The group's total broadband base fell by 125,000 in its first quarter to 4.047 million, it said, while total revenue declined by 2 percent to 414 million pounds ($640.6 million).

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